“A good label should stick well”, — jokes Filip Weymans. “We know that label needs to stick to the bottle. But, besides the bottle, it also has to ‘stick’ with the customer and encourage them to buy a product.”
That is why manufacturers create unusual label designs using a variety of printing techniques. It makes a potential buyer interested in their product. In today’s article, we are going to talk about the growth of the alcoholic beverages market and what role label plays.
Alcoholic beverages market in 2020
Even though 2020 was challenging for all areas of business, and it negatively affected the development of most business activities, the alcoholic beverages market did not only maintain its position but also demonstrated 39.1% growth (according to The Distilled Spirits Council of The United States). In monetary terms, this is more than $1 billion.
A significant part of the market was occupied by sales through E-commerce. Marzette notes that in 2020, Internet Sales increased by 153% and the number of orders by 191%, respectively. Consumers began buying alcohol directly from their favorite wineries and online stores.
Key spirits that contributed to sales growth in the US market (according to the report byDistilled Spirits Council of The United States):
- American whiskey, its sales increased by 8.2%, or + $327 million, to $4.3 billion;
- Tequila – sales increased by 17.4% or +$587 million to $4.0 billion;
- Cognac demonstrates + 21.3% growth or +$413 million to $2.4 billion;
- Sales of cocktails or ready-to-drink beverages (RTD) increased by 39.1% or +$137 million to $489 million.
According to the International Organization of Vine and Wine (OIV) report 2020, the world wine market is estimated at 258 million hectoliters. And more than its half is produced by only four countries: Italy (47.2 mhl), France (43.9 mhl), Spain (37.5 mhl) and the United States (24.7 mhl). Also, there has been significant growth in wine production in Australia, which has multiplied its production over the last decade.
The effect of the label on the Customer’s choice
According to the research by Wine Vine Analytics, the label is among the key factor in wine selection.
Patti Britton from Britton Design says, “Wine packaging is like a mini-poster that allows you to tell a story in just a few seconds. The design of the bottle should win the trust of the consumer and make him a loyal one even before tasting the product.”
Understanding what is eye-catchy for customers, and what motivates them to buy an exact drink, will help to develop a label that attracts customers and stimulates sales. According to the research, customers' preferences for the label also vary depending on the price of the drink.
For instance, when choosing a wine that costs less than $20 per bottle, buyers pay attention to the labels with bright colors (red, orange, or gold). If the choice is between drinks in the price segment from $20, consumers prefer a traditional label with a more restrained design.
Hence, the main wishes of consumers to the label are:
- Bright colors and non-standard design to attract attention;
- Textured finishes for tactile perception;
- “A piece” of humor and emphasizing the features of the drink;
- Availability of all necessary information on the label.