A decade of change in Australian drinking trends unveiled by Dan Murphy's

In a world where tastes are as dynamic as the seasons, Dan Murphy's is excited to share for the first time ever a rare glimpse into how Australians' preferences for alcoholic beverages have transformed over the past decade.

This unprecedented insight reveals how major societal shifts have influenced the nation's choice of beverages and highlights the trends shaping the future of the liquor industry.

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Dan Murphy’s Managing Director Agi Pfeiffer Smith said that by understanding historical trends we can drive growth in our industry.

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“We have seen our customers’ purchasing behaviour influenced by macro factors such as technological advancements, environmental sustainability initiatives, demographic shifts, the COVID-19 pandemic, and an increased focus on mindful consumption,” Ms Pfeiffer Smith said.

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“Today’s customer demands more from brands than they ever have before, and by placing them at the heart of our strategy ensures we stay relevant and meet their needs.”

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‍The tech-driven value revolution‍

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Against a backdrop of a variety of economic conditions over the past decade, technological advancements and digital connectivity have profoundly impacted how Australians perceive value.

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“Our insights show that value means something different to everyone,”  Ms Pfeiffer Smith said. “We’ve come a long way from flipping through catalogues to find discounts, as younger generations are now prioritising experiences that complement their lifestyles, often opting for services that offer ultra-convenience over price-led value.”
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A shift towards mindful consumption and sustainable choices‍

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The trend towards mindful consumption has gained momentum over the last five years, with customers increasingly interested in products that align with their values and lifestyles. The demand for transparency and authenticity is on the rise, encouraging brands to emphasise storytelling and sustainability credentials. This shift has led to the proliferation of lighter and low-carb options, catering to our customers' desire for diverse and mindful drinking experiences.‍

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Redefining social occasions‍

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“Over the last few years, we’ve seen the nature of social occasions transform dramatically,” Ms Pfeiffer Smith said. “The acceleration towards more virtual interactions and home-based gatherings has driven a demand for products suited to smaller, more intimate settings, as well as portable options for outdoor activities.”

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As a result, the rise of canned cocktails and format innovations such as bagnums has ensured that customers have access to products that are convenient and versatile, and that cater for a variety of social settings.
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Breathing life into the classics‍

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Nostalgia continues to play a role in current customer preferences, as people often seek comfort in familiar tastes and experiences. Customers are continuing to be drawn to products that evoke memories, leading to a revival of interest in vintage cocktails, retro branding, and time-honoured recipes. 

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“We’ve seen old diner flavours like lemon squash and creaming soda make a comeback over the last few years,” said Ms Pfeiffer Smith. “Suppliers have really embraced flavours from the 80s and 90s and combined with branding and packaging of today; our customers love it!”

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Lighter styles: Refreshing our tastes

Customers preferencing lighter-tasting and more refreshing styles is a growth trend reflected across all categories over the past decade. “Lighter refreshing styles are outpacing category performance,” Ms Pfeiffer Smith said. 

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“In Wine, we see lighter styles such as Pinot Gris, Rose, Prosecco, Champagne and more recently Spritz enjoying growth. While in beer, customers are enjoying less bitter options such as pale ales and lagers.”

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The rise of lemon
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Lemon has emerged as a dominant flavour trend across all categories, from cocktails to craft beer and wine. Its refreshing nature and versatility have made it a favourite for customers, driving innovation and growth in the industry. 

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“It’s no secret that Lemon is enjoying a moment in the sun,” Ms Pfeiffer Smith said. “We see it in cocktails, premix, wine spritzers; the question is - what will be the next big flavour?”‍

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‍2014 - 2024: Unpacking category shifts

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BEER

Over the past decade, the way customers engage with the beer category has evolved. We have seen a shift as customers gravitate towards more sessionable beers with lower International Bitterness Units (IBUs), reflecting a preference for smoother, less bitter flavours. Ginger Beer, for instance, has gained popularity and grown ten-fold over the decade, aligning with the trend for refreshing, sessionable drinks.

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The concept of "Premium" has also shifted. Over the last decade, there has been a long-term move away from Premium International Beers towards Craft Beers, which saw a peak during the COVID years.

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Ten-year Craft Beer trends show a growing customer preference for lighter and more refreshing profiles, with a shift towards lower IBU variants. Since 2014, styles like Golden, Dark, Sour, Amber, and Red Ale have declined, making way for the rise of Pale Ales. Variants such as Hazy, India, Extra, and Pacific Pale Ales are experiencing growth, driven by brands that meet demand for fresh, sessionable styles and a relaxed lifestyle.

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We’ve also seen growth in Mid-Strength, Non-Alcoholic, and Low-Carb Beers. These sub-categories have grown +12 share points collectively across all generations.

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Additionally, Japanese Beer has captured attention with its crisp taste, growing ten-fold over the decade, resonating with Australia's shifting demographics.

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SPIRITS

From 2019 to 2021, spirits gained share, accelerated by COVID lockdowns and the subsequent cocktail popularity surge.

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In Glass Spirits, there's been a noticeable shift towards Light Spirits, which are outpacing Dark Spirits. Gin's popularity increased over the past decade, peaking during the pandemic and slightly declining post-pandemic. Importantly, Gin's share gains did not detract from other Light Spirits, as Tequila Blanco continues to rise. Gains in Soju, Aperitivos, and Limoncello also reflect this trend towards lighter styles.

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Despite the impressive growth of Agave-based spirits, there is still headroom for Tequila as penetration remains lower than Gin and Vodka.

Dark Spirits, however, have not enjoyed the same share gains, with American Whiskey, Whisky, and Rum losing share over the decade. Green shoots are appearing in Scotch Single Malt, Irish, Japanese, and Australian Whisky, all showing growth. 

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Over the decade, Whisky and American Whiskey have fallen out of the top ten sub-categories for MilZ, while Vodka ranks at number three for Gen Z only dropping out of the top ten for Younger Millennials as Whisky gains favour.

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PREMIX

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Premix has gone from strength to strength, gaining share right through to 2024 and growing four share points over the last decade.

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While Premix Bourbon is the leading sub-category, its share has declined by about one-third over the past decade due to competing Light Premix innovation. Similarly, Premix Rum and Premix Whisky have seen reductions, albeit from smaller bases. 

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Dark Premix faces the challenge of retaining share by aligning with younger generations' preference for refreshing styles. Recent product launches suggest brands are heeding these calls, aiming to develop Dark Premix options that address emerging needs, flavour and relevance. 

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Conversely, Light Premix has experienced exponential growth with Premix Vodka - which has doubled its share since 2014 - leading the charge and almost reaching parity with Dark Premix. The rapid rise and fall of sub-categories like Premix Gin and Seltzer illustrate the fast-paced nature of Premix brand lifecycles.

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Breakthrough NPD like Hard Rated and -196 Double Lemon have driven growth in the Light Premix space, thanks to popular flavour profiles and approachable branding.

WINE

While Wine preferences are changing, these shifts are less dramatic than other categories in liquor and have occurred over a longer term. Over the decade, customer taste preferences have evolved, as seen in the transition from the oak-forward buttery style of Chardonnay in the 1980s to a split in the 2000s between the fresher, fruit-forward versions in the commercial wine space and the premium steely and austere styles that align with modern palates.
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Now, we have reached a point of maturity with Australian Chardonnay and customers today can choose from the kaleidoscope of options that is modern Chardonnay. Interestingly, we have seen a recent resurgence in the buttery style amongst our Baby Boomer and Gen X customers who fell in love with the style back when it was popular in the 1980s.

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In recent years, lighter varietals and styles have emerged as growth leaders, although Shiraz and Sauvignon Blanc remain dominant representing over 25% of all wine sales.
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Rosé was in growth leading into the pandemic and has established its position since - enjoying the highest percentage growth in wine over the past five years and showing no sign of slowing. Pinot Gris/Grigio, Pinot Noir and Grenache continue to gain popularity, particularly with younger consumers. It is also worth noting the growth of styles and varietals such as Sangiovese and Sangiovese blends, and Non-Alc gaining favour with customers. 

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Since COVID, Sparkling Wine has gained market share within wine, driven by Prosecco and the Spritz trend. The introduction of ready-to-pour Limoncello Spritzes has spurred innovation in the segment, leading to a boost in growth in sub-categories like Prosecco, Sparkling Rose and Sparkling Spritz.

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Emerging format trends we expect to accelerate over the coming years include Piccolos - appealing to Traditionalists, Baby Boomers and Gen X - and 1.5L Bagnum - appealing to Gen X and Older Millennials with convenient and sustainable packaging.

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