03 October 2019
The Cider Report
Treating cider like fine wine!
Like any market, the world of Cider is complex, crowded and difficult to navigate. When we begin any project we need to immerse ourselves in the clients world, and yes this means trying the products! So through a haze of cider infused meetings, we found ourselves getting to know the consumer behaviour around purchasing and what really makes a cider brand unique.
The market is changing and it’s opening up opportunities for existing and emerging brands, providing they are open to change….
Millennials have driven the change with the existing popular white cider market diminishing to the emerging fruit cider. It’s trendy and more photograph-able, meaning #instafriendly - look at the accounts of Kopparberg, Old Mout, and Thatchers for the proof.
A survey of 600 cider drinkers showed us:
• 48% consume it in either bottled or canned form.
• 60% of 18-25 year olds consume it in either bottled or canned form.
• 16% of this demographic drink bottled white and 31% drink canned white.
• 93% of shoppers had a negative perception of the term ‘white cider’.
• There is a growing trend in consumers wanting to try something new and experiment with flavour profiles.
But there’s more to cider than the fizzy ‘alcopop’ offerings… Welcome to the world of craft! And it’s an interesting one…
Craft cider is continually growing with drinkers increasingly willing to splash out more for premium choices, another step away from white cider as we know it.
Emerging subcategories of fruit cider, or traditional and craft ciders, are influencing new consumers into the market, a younger audience and more females.
The future predications are that fruit ciders and cans are said to dominate 50% of the market by 2023. Consumers and shoppers love cans for their recyclable, lightweight nature and because they’re easy to open - for a brand this also provides a greater surface to splash the brand across.
Premiumisation and craft are key concepts for the cider market. It is a trend that’s hitting all food and beverage retailers, with consumers demanding the better products, it's recently forced Aspall to release a premium cider.
Sharing ciders and bigger bottles are becoming a trend. Newly identified market “Artisanal Apple” for the premium end of the market is for the lower-energy occasion e.g. an accompaniment to food.
Craft is another emerging market with some of the big names, Thatchers, Westons and interestingly – Jack Daniels, releasing sub-products to move into these categories.
The benefits of cider…
Cider over beer – it’s gluten free and health conscious would choose cider over the lager alternative.
Natural and fruit base of cider is further supporting market expansion despite the high sugar content.
Cider packaging is evolving, including draught, cans and the bag in the box. Consumers want sustainable growth and cans offer this. It’s got an expected growth of 6.5% in terms of value.
Drinkers globally are seeking quality over quantity, evidenced by continued growth in premium, super-premium and craft categories; while an increasing number of health-conscious consumers are turning to low and no alcohol varieties.
Fruits and sweetness are driving growth, appealing to consumers given their sweeter, easier to drink nature.
Brewers need to begin to defend the perceived values of craft - such as high quality, authenticity, local and unique.
Craft Ciders - Supermarkets are choosing cooler, smaller and pricier products for the shelves.
Fruit Ciders - On the rise and with a prediction to dominate 50% of the market by 2023.
Education - Consumers are savvy and want value in their buying choices.
Premiumisation - It’s here to stay, consumers are buying better and actively seek the exclusive and premium products.
Tinnys - Dis-pleasingly thin and cheap no-more! New trends are steering to the tin-can as consumers look for sustainable and environmentally friendly options. Dunkertons Cider have recently launched a new flavour, which is available in a tin, and has already seen massive engagement in the market.
A quick snapshot of the industry…
At Third Floor we believe in thinking before doing! Our Dig® uncovers valuable insights that have a massive impact on how we develop a brand. This stage of the process is paramount to the success of any brand and delivers measurable results for our clients.
Take a look at our recent project for Dunkertons Cider to see how we can transform brands and reposition them as a premium, organic range of ciders.