New research shows Australia’s liquor market is shifting from volume to value, with shoppers spending more each bottle shop visit.

The What’s Driving Australia’s Alcohol Shopper: Consumption, Channels, Promotions and Occasions report from Vypr and Shop! ANZ has found 41% of Australians are drinking less than a year ago or have stopped altogether, while only 6% are drinking more.

At the same time, 48% now typically spend more than $40 per liquor-store shop, up from around 23% a year ago. Among 25–34-year-olds, 64% typically spend above $40.

Vypr Chief Revenue Officer Sam Gilding said: “With many Australians continuing to cut back on alcohol, brands and retailers will need to compete harder for a share of spending on the occasions when people do choose to drink.

“That means understanding who the shopper is, where they want to buy and what combination of product, format and price makes that purchase feel worthwhile.”

Younger shoppers reshaping path to purchase

Physical retail remains dominant, with 74% primarily buying alcohol in-store, but younger shoppers are increasingly omnichannel.

Only 55% of 18–24-year-olds and 58% of 25–34-year-olds primarily shop in-store, while 37% of 25–34s combine physical and online purchasing. The findings suggest digital shopping is complementing rather than replacing physical retail, increasing the need for consistent ranging, pricing and promotion across channels.

Price remains the strongest influence at the point of purchase. Special price tickets are noticed by 63% of shoppers and influence product choice for 61%.

But other value mechanics are gaining ground. Loyalty points now influence 44% of shoppers, up from 28% for loyalty or member offers a year ago, while bonus packs influence 36% and cashback 33%.

Shop! ANZ General Manager Carla Bridge said: “Price remains incredibly effective at stopping the shopper, but value is becoming broader than on-sale prices alone. Loyalty, added product, sampling and staff advocacy on a product can all help move the consumer into purchase. The strongest activations will give shoppers a reason to stop and try.”

Wine still on top

Wine remains the most widely purchased category nationally at 55%, followed by spirits at 46% and beer at 44%. But among 18–24-year-olds, beer reaches 64% and RTDs 46%, while spirits reach 68% among 25–34s.

However, wine becomes more prominent through middle age, reaching 71% among 35–44s and 63% among 45–54s. These differences point to a need for more targeted ranging, channel and activation strategies rather than a single approach to all shoppers.

The holiday season creates another growth opportunity, with Christmas Day influencing alcohol purchases for 52% of consumers, while Christmas parties and gifting influence 47% each and New Year’s Eve 46%.

Gilding said: “Those differences matter as we head into Christmas. Someone buying a gift may be looking for something quite different from someone choosing drinks for a party. Helping shoppers find the right option for their occasion and budget will be important in winning that purchase.”

The full What’s Driving Australia’s Alcohol Shopper: Consumption, Channels, Promotions and Occasions report is available here: au.vyprclients.com/reports.