Nielsen insight: try another flavour

If I had said a few years ago that flavoured gin would be bigger than flavoured vodka and be the spirit which contributes the largest growth to the alcohol market, would you have believed me? 

As of July, flavoured gin is nearly double the size of flavoured vodka (£111 million vs £61 million). It has also proven to be a big contributor to the growth of spirits as a whole. In the past three months, 51% (£38 million) of spirits value growth came from flavoured gin. It has encouraged 700,000 new households to buy into alcohol and has influenced a further 12.9 million households to increase their spending by adding flavoured gin to their alcohol basket. 

With an influx of new and exciting flavours entering the market – seaweed, peppercorn and celery, to name a few – shoppers are willing to spend more on these products than they would on both non-flavoured gin or flavoured vodka.

This plethora of experimental and sophisticated flavour combinations is appealing to the more affluent Generation X households (35-44 years), whereas the more standard variations of flavoured vodka tend to appeal to both millennial (under-35) households and older one-member households (65 years+). 

Flavoured gin is also resonating well with the off-trade as each one of the 32 new products launched in the past year secured a space on shelves. 

There are now 70 flavoured gin products available in stores, compared to 29 flavoured vodkas. It’s not that aisles have grown to accommodate these products, but rather that other products, including sambuca, advocaat, and golden rum, are losing out to accommodate it.

Considering that just three years ago flavoured gin was worth £4.1 million (10 times smaller than flavoured vodka), it has experienced phenomenal growth over the past few years. 

If the average growth rates seen over the past few quarters continue, by the time we reach Christmas flavoured gin could be in the top five selling spirits. That’s remarkable considering that just a few years ago it was at number 23. Make sure you have a selection of these flavours on shelf as they are not only products which are resonating well but will serve as new and different gifting options over the upcoming festive period.

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