New research released by Frontier Economics has dispelled common misconceptions about consumer behaviour in the online liquor market.

The Retail Drinks Online Alcohol Sale and Delivery Research Report, commissioned by Retail Drinks Australia, analyses data from major suppliers and delivery partners, providing an accurate understanding of consumer behaviour in the Australian online liquor retail market.

Among the almost nine million transactions analysed, it was clear that several misconceptions around online liquor sales aren't represented in the facts, according to Michael Waters, CEO of Retail Drinks Australia.

"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," he said.

Rather than confirming misconceptions about ease of access causing overconsumption, Waters said the extensive research proves the opposite.

"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," he said.

Representing just 13 per cent of liquor sales nationally, the report shows that the traditional in-store experience is still preferred for alcohol purchases. However, there are signs of growth online.

"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 per cent requesting a different day," said Waters.

Waters also said the report invalidates the claim that online delivery leads to easier access to alcohol for underage drinkers.

"The findings reveal that the primary users of online liquor websites tend to be older individuals. The 36 to 45 and 46 to 55 year age groups are the most frequent users, also displaying a higher spending propensity.

"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 placed on signatories to the Code," he said.

Other key findings from the report include:

  • Online purchases for express delivery (within 2 hours) account for less than 22 per cent of sales, with less than 8 per cent of this delivered within 30 minutes
  • Customers order infrequently, with the median customer ordering just once or twice a year
  • Same day alcohol deliveries are concentrated in the late afternoon/early evening hours (peaking at 6 pm to 7 pm), and this varies little by day of the week
  • Most online customers purchasing alcohol for delivery are aged 35 years and over
  • Younger customers spend less per order and purchase fewer drinks per order
  • Same day delivery customers are concentrated in high-income inner-city areas, and primarily in the state capitals
  • Beer and cider account for the largest share of total delivered online sales (41 per cent), and wine accounts for the largest share of same day delivered sales (35 per cent)
  • Ready-to-drink spirits account for the smallest share of total delivered online sales, whether same day (11 per cent) or non-same day (7 per cent)

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