Alcohol Excitement

Alcohol remains a fast-moving space for innovation and consumer sales, with sub-categories of non-alcoholic alternatives, low alcohol and RTD products emerging in response to a broad range of consumer needs.

Key Drivers

This trend reflects the rising demand for both alcoholic and non-alcoholic options, showcasing a shift toward a more 'flexitarian' drinking approach. Alcoholic beverages remain popular, with growth in RTD and lower ABV options emphasizing experience, convenience, and health.

Simultaneously, consumers are gravitating toward non-alcoholic alternatives for social or adult occasions when reducing alcohol intake. These include non-alcoholic beers, spirits, and botanical-based drinks positioned as sophisticated alternatives, designed to sit seamlessly alongside alcoholic options in a bar fridge.

How This Trend is Manifesting

01.

High Levels
of NPD

High levels of NPD, marketing spend, and consumer sales are demonstrating the excitement and opportunities identified within the alcohol (and alcohol alternative) categories:

The launch of flavored alcoholic beverages in the US has surged by +54% in the past year (Mintel GNPD, 2023-24), with products becoming more creative and adventurous. Emerging sub-categories like hard soft drinks and botanical-infused formulations are gaining traction, offering a more sophisticated take on flavored alcohol. These innovations represent an evolution from the traditionally high-sugar options, catering to modern consumer preferences for refined and diverse flavor profiles.
Despite the challenging consumer spending environment in 2024, hard tea is one example of the fast-growing alcohol category sales, continuing its historic high-growth trend, to achieve +36% value growth YOY (Nielsen, 2024).
Major brand owners entering fast-growing categories e.g. RTD giants such as Arizona and major breweries such as Molson have entered the hard tea category
The intersection of alcoholic beverages and functional wellness drinks, as consumers turn to kombucha, adaptogens and nootropics to enhance the positive impacts of not drinking alcohol

Top Tips to Access This Trend

Expand your beverage portfolio to address the wide range of consumer needs to ensure you can address drinking and non-drinking occasions. Identify the emerging and fast-growing segments within the alcohol space to capitalize on consumer excitement.

Use natural ingredients like tea and botanicals to establish a more authentic and natural brand positioning.

Promote experience and convenience – emphasize portability, premium flavors, and unique occasions tied to consumption, enhancing appeal to modern consumers.

What’s Next?

Synthetic alcohol and "beyond ethanol" beverages, designed to replicate alcohol’s effects without its negative side effects, are gaining momentum. Products like Sentia, now available to consumers in the USA and Europe, signal the upcoming breakthrough of this emerging market segment. These innovations align with shifting consumer preferences for healthier alternatives while maintaining the social and experiential appeal of traditional alcoholic drinks. As awareness and adoption increase, this category is poised to redefine the boundaries of alcohol consumption.