Trade body Retail Drinks Australia found most consumers still prefer in-store experiences over buying alcohol online, according to a new report.
Frontier Economics published the Online alcohol sales and delivery in Australia report, which was commissioned by Retail Drinks Australia.
After analysing millions of real-time transactions from retailers, marketplaces and delivery partners throughout Australia, the report concluded that online alcohol sales were not as popular as traditional in-store shopping experiences.
Michael Waters, Retail Drinks CEO, said: “The report is the first of its kind, using retailers’ actual data to provide the most comprehensive view of the online alcohol delivery market in Australia.
“There is a growing misperception that online purchasing is fuelling a generation of tech-savvy liquor consuming millennials. However, this report debunks such myths with empirical evidence.
“Rather than relying on extrapolations from anecdotes or sample surveys, this exhaustive research reveals that consumers only use online purchase and delivery a couple of times a year, the vast majority are comfortable receiving their products in the days after placing their orders, and it is most used by people aged over 35.
“Nationwide data shows that most people still prefer the traditional in-store experience, with online purchases representing just 13% of all retail liquor transactions, though there are signs of growth.”
Furthermore, the report showed the primary users of online alcohol websites tend to be aged between 36 and 55 years old – who also spend more money compared to younger demographics.
“Moreover, these individuals predominantly reside in inner-city urban areas of major metropolitans rather than rural regions,” Waters added. “The report also dispels the notion that online orders are mostly made by heavily intoxicated individuals with a desire to continue consuming immediately.
“Contrary to popular belief, most people place online orders around dinner time regardless of whether they request same-day delivery or delivery at a later date, with 65% requesting a different day.”
Online sales still protect minors
Waters also highlighted that the report debunks the notion that online delivery makes it easier for minors to buy alcohol.
He said: “The findings indicate that postcodes with higher concentrations of 16- and 17-year-olds do not experience increased online sales. On the contrary, they tend to have fewer online sales.
“It’s clear our Online Code of Conduct is working. Introduced in 2019, it requires delivery drivers to have RSA qualifications, implements age-verification procedures, bans same-day unattended deliveries, and blocks out times for deliveries, to name just a few of the rules in place on signatories to the code.”
In a recent feature, Australian whisky producers shared how they plan to capitalise on international opportunities as the category gains momentum.
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Author: Melita Kiely