Posted on: 04/03/24 Posted by: Daniela Vickery
The Australian hospitality landscape has seen its fair share of challenges, from rising interest rates, increased food costs, tight labour markets, and the pandemic hangover. As people continue to come back to the service-based industry, we are seeing two trends that are making significant waves as we navigate through 2024: the growing demand for sustainable business practices and the surge in popularity of non-alcoholic beverages. As these trends become normalcy, they present both challenges and opportunities for hospitality venues here in Australia.
Understanding the Trends
The surge in demand for non-alcoholic beverages is not just a passing fad—it's a seismic shift in consumer behaviour. Recent studies reveal that the proportion of individuals aged 18 to 24 abstaining from alcohol has surged from 13% to 21% over a 12-year period. That means more than three in five young adults are now opting for alcohol-free alternatives—a demographic segment that hospitality venues can't afford to ignore.
Simultaneously, sustainability has become a non-negotiable for today's consumers. An overwhelming 87% of Australians express concern about environmental issues, with over one-third actively seeking to minimise single-use plastic consumption. Moreover, a staggering 66% of consumers worldwide are willing to pay a premium for sustainable products, according to a study by Nielsen.
Implications Innovative Solutions for Hospitality Venues
The convergence of these trends has profound implications for hospitality venues. As non-alcoholic beverages command more space on beverage menus, venues must adapt to meet evolving consumer preferences. In 2022, non-alcoholic drinks saw the most sales growth in upscale restaurants and bars, however the profit on this drinks sector is underperforming. Venues are responding by featuring a diverse array of alcohol-free options, including no-alcohol beers, wines, spirits, and virgin cocktails as a way to still offer a premium experience that used to only be associated to alcohol-based drinks.
The shift towards sustainability extends far beyond beverage choices. Hospitality businesses are increasingly adopting eco-friendly practices to reduce their environmental footprint. International research by UNESCO indicates that the hotel industry alone uses 150 million tons of single-use plastic a year. Tackling this issue requires more than just recycling but looking at innovative ways to reduce single use plastic without compromising on service, experience, and profit. 33% of operators state that they ‘were planning to make changes within their business in the next 12 months’ in an effort to practice sustainability. Embracing switches to more environmentally practices, venues can not only reduce costs but also enhance their brand reputation in the eyes of environmentally conscious consumers.
Innovation is the cornerstone of success in the hospitality industry. Implementing sustainable solutions, reducing single-use plastic, making simple swaps to non-alcoholic beverage menus that increase venues bottom line, and providing services that customers are seeking in 2024. By embracing these trends, venues can attract a broader customer base, enhance their brand reputation, and reduce their environmental impact. Moreover, as consumers increasingly prioritise sustainability, venues that lead the way in eco-friendly practices stand to gain a competitive edge in the market.
The Bottom Line: A Recipe for Success
As we navigate through 2024 and beyond, hospitality venues have the opportunity to redefine the guest experience through sustainable innovation. By tapping into emerging trends and embracing the intersection of sustainability and non-alcoholic beverages, venues can create memorable experiences that resonate with today's conscientious consumers.
At Purezza we deeply understand the needs and challenges of the hospitality industry and offer premium sustainable water solutions that not only impact our customers' bottom line but also contribute to a greener, more sustainable future for the hospitality industry. As we see these trends continue to make their impact in the market, our latest technologies ensure that more than 5,000 venues offer healthier, cleaner, better value and more socially responsible sparkling, chilled, or ambient water to their customers.
Reference:
https://www.lightspeedhq.com.au/blog/restaurant-trends-2024/
https://hospitalityinsights.ehl.edu/implementing-sustainability-in-service-organizations
https://hospitalityinsights.ehl.edu/hospitality-industry-trends
https://opsyte.com/Blog/Hospitality-News/Hospitality-industry-insights-2024
