Alcoholic beverages are more than just a fad as it has emerged as an emotion that is crucial for connecting with people and your loved ones by raising toasts at conferences, weddings, and other valuable life events. In addition, customers have various liquor options at their disposal, including whisky, vodka, wine, gin, and beer, among other well-known beverages. In fact, every beverage differs significantly from one another in terms of flavour and use in the realm of alcohol.

There is no denying the fact that as consumer expectations are shifting, so does their drink habits and preferences. Gone are the days when people used to prefer alcoholic beverages without any mixer. However, as the constantly changing landscape, new trends have emerged that are not only boosting the growth trajectory of the alcoholic beverage industry but also inventing a few that will significantly transform the industry. Furthermore, the current generation places a high value on their beverage choices. They are investing in learning about the product’s history and making sustainable beverages a significant choice. So, let’s delve into the alcoholic beverage trends that will sooner or later transform the beverage industry.

Trends that will Alter the Beverage Industry

Experimenting Consumers: People are becoming more open to experimenting with their drinks. Although the premiumness value remains stable, preferences can shift dramatically if experience outperforms the former. Trying new things has become the trend, especially with the changing needs and demands of the new-age generation. There is no doubt that the constant lookout for something new in the drink has taken precedence; whether it is flavoured vodka or gin, people prefer it over their old, boring drink daily. Aside from that, there is an increase in the use of cocktail mixers, and people are more inclined to experiment with different mixers to improve the taste of their drinks. As a result, this rising trend is anticipated to alter the beverage industry in the present era and beyond.

Increase demand for Premiumisation: It is an evident fact that alcoholic beverages continue to ride the premiumization wave as the preferred trend. New products are conceptualized with “premiums” and “innovation” as dominant brand characteristics, considering they are critical to maintaining consistent growth. Whisky is expected to overtake vodka in worldwide sales due to its seamless association with the “premium single malt” positioning. Indian liquor companies are also capitalizing on this trend, with the introduction of Indian single malts and investments in sub-segmentation. Consumers have a diverse product portfolio to try, according to IWSR research, with a particular interest in craft beer, hard seltzers, wine, and single malt. As a result, it is poised that the trend of focusing on premium consumption will indeed fuel the beverage industry’s growth to some extent.

Eco-conscious Brands and Products:  In the present-day scenario, consumers are more conscious of their choices and are looking forward to more environmentally friendly alcohol options. In this context, eco-friendly brands and mindful consumption has emerged as the new trend, which is expected to last until 2023 and beyond.  Brewers have thus devised novel methods of incorporating sustainability into the production of their goods, one of which is sustainable beer. In fact, in addition to packaging and renewable energy, some brewers have chosen locally produced ingredients to reduce emissions.  As a result, more and more people are opting for sustainable beer and eco-friendly beverage packaging to safeguard the beverage industry’s future as well as growth trajectory.

Ready-to-drink Beverages: This trend has been prevalent since the pandemic and appears to be gaining popularity as a way to encourage better and more convenient drinking. As a result of the growth trajectory, many firms appear to be following and moving forward. For instance, if you want to drink hard liquor but get condemned by the stench, you can get a cocktail that is easy to consume, fresh, clean, and readily available. On the other hand, as consumers focus on flavor, aroma, and quality, demand for convenient canned cocktails made with real spirits (vodka, tequila, or rum) will increase. According to market experts, it is predicted that the market for ready-to-drink alcoholic beverages will grow by 3% globally to reach 32 billion dollars by the end of 2024. In fact, as time goes on, consumers will prefer ready-to-drink beverages over others.

Rise in e-commerce: The alcoholic beverage industry’s main focus this year will be convenience, and e-commerce will be the perfect complement to be a game changer. And, in modern times, it is critical to break the traditional monotony of purchasing the beverage. During the lockdowns, many states introduced the concept of ordering alcohol online because it was convenient and a good way to avoid social gatherings.

According to the IWSR report, the e-commerce market is expected to account for approximately 6% of all off-trade beverage alcohol volumes by 2025. People can also choose from a variety of options when they shop online. As a result, channel shifts will continue to evolve in the future, and e-commerce will remain a critical investment. Furthermore, to achieve the desired outcome in the future, businesses in the beverage industry will require a nuanced, law-compliant strategy. As a result, in order to meet consumers’ expectations, the rise of e-commerce channels will occasionally shift the beverage industry’s growth.

According to Statista, the market of alcoholic beverages is expected to grow at a CAGR of 7.98% to reach $52,500 million in revenue during the forecast period 2023 to 2025. In a nutshell, owing to the ever-changing era, the aforementioned Alco beverage trends will soon alter the beverage industry.

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