New study shines light on future trends in spirits
Research undertaken by GlobalData suggests that premiumisation, convenience, generational shifts and AI will be the key drivers of innovation and development in the spirits industry over the next five years.
According to the firm: “Consumers are increasingly adopting a 'drink less but drink better' outlook, as they seek products that offer superior craftsmanship, unique flavours, and premium ingredients."
The study, entitled: Next-Gen Beverages:Bridging Affordability, Sensory, and Gen Z Preferences, explores the rise of premiumisation, the importance of convenience in driving innovation across FMCG, and the expanding role of Gen Z in targeted spirits marketing.
The report stated: “In the global beverages industry, the spirits market is expected to achieve a faster value (9.4%) and volume (3.6%) CAGR over the next five years (2023-2028F) than all other beverage sectors such as Beer and Cider, Wines and Soft Drinks—with Spirits value CAGR projected to be more than double volume CAGR over the period.
“Along with premiumisation, convenience has emerged as a pivotal factor in the spirits sector, as modern consumers, particularly younger demographics, prioritise ease of access and on-the-go options. This has led to the rise of flavoured ready-to-drink (RTD) spirits and cocktails in portable, single-serve formats, with flavoured alcoholic beverages (FABs) projected to achieve the fastest volume CAGR (6.7%) among all alcoholic beverages sectors for the period 2023-2028.”
GlobalData dedicated a significant portion of its research to understanding the behaviour of Millennial and Gen Z consumers, described as having “distinct preferences to their buying behaviour, prioritising authenticity, innovation and responsibility in their beverage choices”.
According to the research: “Unlike previous generations, they are more attuned to their own preferences and priorities than to brand loyalty. These consumers are more explorative in their tastes, often seeking out new and unconventional spirits flavours, as well as exploring craft and niche brands, relying on social media and online communities to discover and share their experiences.”
Meanwhile, AI is reportedly becoming a major influence in the spirits industry, expected to have a “profound impact on the future of the spirits industry by meeting growing consumer demand for premiumisation and convenience, while also supporting the increasing drive for efficiency”.
Nisarga Save, senior consultant and beverages analyst at GlobalData, commented: “The study highlights that premiumisation is a growth catalyst in the spirits market and brand innovation is responding to this with premium ingredients, artisanal craftsmanship and exclusive production techniques to appeal to consumers seeking luxury products.
“The convenience trend is leading to the growth of the FAB and RTD cocktail categories, which offer consumers premium, bar-quality drinks in inexpensive, pre-packaged formats, catering to socializing at home or independently.”
Keywords:
Search
56-58 Church Walk, Burgess Hill, West Sussex, RH15 9AN
Registered in England No. 6646125. VAT No. 938 4452 95
