What drives on- versus off-trade beer consumption? A regional and global panel analysis of 97 countries

Loading...
Thumbnail Image
Files
Date
2023-12-02
Authors
O'Connor, Fergal
Waehning, Nadine
Journal Title
Journal ISSN
Volume Title
Publisher
Springer
Research Projects
Organizational Units
Journal Issue
Abstract
This chapter examines the elasticities of demand of beer (price, cross price and income). This shows how the drivers of demand for beer vary regionally. We break down this demand between on- and off-trade consumption to show that these two markets have very distinct features, analysing data for 97 countries using Euromonitor data from 2006 to 2021, using a panel fixed effects model. We find that off-trade beer is a complement for on-trade, the “Prinks effect” where beer is consumed at home before going to an on-trade venue, but on-trade beer is a substitute for off-trade beer. We identify region-specific differences such as: Western Europeans off-trade beer consumption falling as their incomes rise and Eastern Europe being the only region where the “Prinks effect” doesn’t hold. We make recommendations around region specific similarities in on- and off-trade which could be considered by businesses considering pricing and internationalisation policies.
Description
Keywords
Beer consumption , On- versus off-trade , Location , Panel analysis , Price elasticity of demand , Income elasticity of demand , Cross price elasticity of demand
Citation
O’Connor, F. and Waehning, N. (2023) ‘What drives on- versus off-trade beer consumption? A regional and global panel analysis of 97 countries’, in M.W. Patterson and N. Hoalst-Pullen (eds) The Geography of Beer, Cham: Springer Nature Switzerland, pp. 71–88. Available at: https://doi.org/10.1007/978-3-031-39008-1_6
Copyright
© 2023, Springer Nature Switzerland AG. This is a post-peer-review, pre-copyedit version of a chapter published in The Geography of Beer, Cham: Springer Nature Switzerland. The final authenticated version is available online at: https://doi.org/10.1007/978-3-031-39008-1_6