eCommerce Benchmarks & Insights for Multichannel Alcohol Brands
Overview
- Market Trends: The alcohol eCommerce market is rapidly transforming, with significant shifts in consumer behavior and regulatory challenges.
- Market Growth: The alcohol eCommerce market is projected to reach over $51 billion by 2029, driven by increasing online sales.
Key Findings
- Consumer Preferences: Non-alcoholic drink alternatives are gaining popularity, with 41% of Americans making an effort to drink less.
- Clicks and Intentions:
- Purchase Intent Clicks: The percentage of shoppers who click through to at least one retailer.
- Purchase Intent Rate: The rate at which shoppers convert to purchases.
- Top Performers: MikMak Commerce-enabled brand websites lead in Purchase Intent Rates at 13.3%, followed by Search at 7.4%.
Traffic Sources
- Social Media: Social platforms drive the most eCommerce traffic for alcohol brands, with Meta dominating at 96.4% of Purchase Intent Clicks.
- Channel Performance:
- Meta: Highest conversion rate at 8.2%.
- YouTube: Second at 3.7%.
- Pinterest: 0.6%.
- X (Twitter): 0.5%.
Market Share and Competition
- Top Retailers: Instacart is the most popular online retailer for alcohol brands, with 34% of Purchase Intent Clicks.
- Performance Trends: Purchase Intent for alcohol brands peaks in the first half of the year, particularly on Valentine’s Day (11.8%).
- Recent Shifts: In March 2024, Drizly’s services were halted, shifting consumer preference towards Instacart.
Product Visibility and Compliance
- MikMak’s Role: Provides a seamless path to checkout across various channels, ensuring compliance with industry-specific regulations.
- Compliance Features:
- Tied-House Control: Ensures two non-marketplace retailers are shown.
- Marketplace Control: Ensures only marketplaces are shown.
- State Retailer Control: Allows a retailer category allowlist by state.
- Age Gate Control: Supports COPPA compliance with an age gate option.
Case Studies
- AriZona SunRise: Increased purchase intent and collected valuable first-party shopper data by making Hulu CTV pause ads shoppable.
- Multi-Brand Experience: A leading alcohol brand showcased multiple brands within its portfolio, achieving a 400% higher Purchase Intent Rate from Hulu Ads compared to other platforms.
Competitive Advantage
- Benchmark Insights: MikMak helps brands compare and optimize performance against competitors.
- Community Building: Emphasizes building a strong brand and community, being relevant in culture, and having amazing products.
Retailer Partnerships
- Top Checkout Options: Instacart leads with 37.3% of Purchase Intent Clicks, followed by Total Wine (28.7%), Walmart (23.5%), Minibar (7.9%), and Kroger (5.9%).
Conclusion
Understanding and leveraging these key insights can significantly enhance a brand’s market share and sales in the rapidly evolving alcohol eCommerce landscape.