All data Westons Cider Report 2023 (IRI 52 w/e 31.12.22, Kantar P13 52 w/e 25.12.22, CGA Trading Index. Quarter data to Feb 2022, CGA BrandTrack 2022, CGA OPM Data to P13 2022 (21.12.22), Cask Marque 2022, CGA Strategy On Premise Measurement Service P13) unless otherwise stated
- Eighth edition of the Westons Cider Report shows stabilisation of the off-trade
- The convenience sector has increased its share of sales to over 50% and is in prime position for growth
- Sociable occasions are expanding off-trade sales as consumers enjoy entertaining at home
- Herefordshire cider maker predicts that premium, crafted ciders will continue to grow the category, as consumers seek value and quality in 2023 and flavoured ciders stabilise at one-third of the category
Crafted cider will continue to lead growth opportunities, while flavoured cider has plateaued, according to the eighth edition of the Westons Cider Report, released today.
The cider market in the off-trade has stabilised over the last 12 months, while the craft sub-category (+10.2%) is continuing to lead growth opportunities in the market, realising Westons’ declaration that 2022 was the ‘Year of the Apple’.
Meanwhile, the once buoyant flavoured cider market has balanced out at one-third of the total market, countering predictions that it could represent half of cider sales by 2023.
“Following a truly extraordinary few years for cider sales in store, we always knew the market would take some time to settle as shoppers returned to more typical purchasing habits,” says Darryl Hinksman, Head of Business Development at Westons Cider.
“Despite tough annualisations, driven by the huge growth we saw during the pandemic, and the ongoing cost of living challenges, we’re seeing the market decline less and less every month. This indicates the market is continuing to stabilise and is in a strong position for 2023.
“With this in mind, it’s heartening to see that the value of sales has decreased less than volume (-7.1% compared with -10.6% respectively), as consumers seek out good quality ciders. While crafted ciders are bucking the trend entirely, as the only sector in growth (+10.2%) and making up a fifth of the total category.
“Even in the current economic climate, we predict consumers will continue to seek out the best quality relative to price and will still be prepared to pay for little luxuries.”
THE OFF-TRADE OPPORTUNITY
In addition to the booming crafted category, there are other opportunities for growth within the off-trade.
“We’re seeing some interesting behaviour changes in the cider category,” explains Tim Williams, Insight and Innovation Manager at Westons Cider. “A ‘quiet night in’ is often consumers’ preferred occasion f0r consuming cider, but we’ve seen social occasions (+1.9ppts) and catching up with friends (+2.9ppts) grow over the last year.
“After the initial novelty of the re-opening of the on-trade following two years of extensive closures, we’re seeing people increasingly want to socialise at home. This is only going to be further impacted as people feel the pinch and look to save where they can – and make the most of celebrations at home, as well as when out and about.”
The report also details the ongoing opportunity in the convenience channel, which has grown to represent more than half of market sales (from 48.6% in 2021 to 50.2% in 2022). Plus, year-on-year performance is beating the total market, by both value (-4.1%) and volume (-8.4%).
“The convenience channel is in an ideal position to continue growing its cider sales this year,” continues Williams. “As with the general market, crafted cider is the only segment in growth (+23.6%) and there is still headroom to explore. The total craft category in convenience is smaller than the market average – so it’s a natural place for retailers to focus attention and ensure they’re maximising sales opportunities by getting their ranging right.”
CRAFTED CONTINUES TO SHINE
The Westons Cider Report also showcases the accelerated growth of crafted cider, growing by more than 10% and contributing £19.5M to the total market.
“Consumers are responding enthusiastically to authentic brands with a sense of provenance – as well as a delicious taste. The majority of crafted value comes from the top ten brands, which combined are experiencing nearly 12% growth, with Henry Westons Vintage seeing the most growth (+6.5%) as the best-selling crafted cider.
“The crafted segment offers a great opportunity for all retailers, as they can command an average of £1.05 more per litre. This year will continue to be challenging for consumers and venues alike, as budgets are squeezed. We know that consumers are looking for value for money, but also quality products – and are prepared to spend more to achieve this.”
CATEGORY HOTSPOTS
Westons’ eighth annual Cider Report also shows:
- More than two in five (43.9%) UK households buy cider, while the average household makes 11.1 shopping trips a year for cider.
- The price per litre is up from £2.31 to £2.40 as premiumisation continues to reign supreme.
- While the southern bias persists, making up 62.% of all volume cider sold and 74% of crafted cider, these are both slightly down from 2021.
- Of the top ten brands, only two are in growth: Henry Westons Vintage (+6.5%) and Inch’s (+131.6%) albeit from a far smaller base.
- Flavoured cider has stabilised over the last year to around a third (32.8%) of cider value. While new flavours can cut through to create excitement and win sales, the most popular flavours continue to be dark fruit and strawberry & lime.
TRENDS SET TO SHAPE CIDER DRINKING IN 2023
The trends that will continue growth throughout this year and beyond include:
- Premiumisation picks up pace – this long term-trend is continuing and accelerating, as consumers are increasingly interested in the authenticity, craft and connoisseurship of cider. The crafted sub-category is showing the most growth and value potential, growing from 14% of the category in the off-trade in 2021, to 19.5% at the end of 2022.
- Quality cues – consumers do not categorise alcohol as a ‘necessity’ purchase, but they do see it as a ‘comfort’ rather than a ‘luxury’, and alcohol sales have been seen to increase during times of economic downturn. In the off-trade, consumers will be looking for the best value for money across quality products.
- Lead with apple – Apple cider remains the most popular cider type, driving the category in value and volume. Plus, the apple cider shopper continues to spend more per year than the fickle flavoured shopper and receives a higher share of spend from fewer shoppers.
- Low & No – this sub-category is steadily growing and, in the off trade, space continues to be found for increasing ranges to offer the shopper choice. Low alcohol cider is now worth £29.1mn (+0.8%), which is lower than the total low-alcohol category (+4.6%) so this is expected to continue gradually growing. However, retailers should continue to prioritise classic apple and fruit ciders, which make up the vast majority of the category.
LOOKING AHEAD
“2022 marked another year of rebalancing post-pandemic,” concludes Hinksman. “And we can see that from these strong roots, there is opportunity for the cider category to continue to blossom, so long as the bestselling crafted options are made available to shoppers.
“With a host of bank holidays on the horizon, there’s huge potential for retailers, with last year’s Platinum Jubilee the fifth largest cider weekend in the off-trade.
“We’ve got to remember that even against a tough economic backdrop, consumers will be seeking out affordable luxuries. As a result, this is the time for retailers large and small to showcase this category through the bestselling products consumers are calling for.”
The full report – including impartial stocking advice for retailers of all shapes and sizes across the off-trade – is also available for digital download here.
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