Alcohol & Hard Seltzer Trends
Fruit-infused beer, selling alcohol online, wine-in-a-can trend, and the rise in demand of tequila are some trends within the Alcohol industry. Each is discussed below, along with the factors driving it.
- The demand for fruit-infused beer is an emerging trend in the alcoholic drink industry, projected to continue into 2020.
- Fruit beer is a type of beer made up of fruits, such as plums, cherries, or raspberries, where the fruit act as a flavoring agent or an adjunct.
- Large brewers like AB InBev are driving this trend; for example, in 2018, the brewer launched Bud Light Orange, brewed with real orange peels for a "clean and crisp taste that highlights natural citrus flavors."
- This trend is driven by factors such as "increasing consumer consciousness relating to long term effects of liquor along with consumer preferences to avoid headaches & drowsiness."
- There's also the rise in demand from teenagers "for fruit beer due to stringent laws on drinking alcohol at the age of 16/18 years" driving this trend.
Selling Alcohol Online
- Selling alcohol online was estimated to be worth $1.7 billion in 2017, according to Rabobank, but more recent numbers are yet to be made available; however, it's predicted that this trend will "become the most important driver of alcohol sales" moving into 2020 and the subsequent years.
- Online alcohol platforms such as Drizly and Thirsti are leading this trend and reaping huge benefits as a result.
- The continued migration from traditional groceries to online shopping, with more customers preferring to use the internet as their "go-to" shopping source, along with "the expansion of retailer click-and-collect and home delivery services" are certain to drive more alcohol sales online.
- Additionally, "the growth of “challenger” brands, such as craft beers, coming online at breakneck speed, is propelling online alcohol sales."
- There's a rising demand for canned wine in the alcoholic beverage industry, with the market "experiencing growth of more than 50%, with Gen Z, millennials, and Baby Boomers all buying wine in a can at the same level."
- Nielsen estimates that about 22 wine brands offer their products in cans, and the trend will continue into the coming years.
- Convenience is identified as one of the main drivers of canned wine’s popularity — since consumers can "take wine where it is inconvenient or illegal to take wine in a bottle."
- Sustainability/cost savings also propel this trend. For example, "aluminum is 100% infinitely recyclable, a feature that sustainability-minded millennials rank high, and is less expensive to fill and ship."
Tequila on the Rise
- The rise in the consumption of tequila is an emerging trend in the alcoholic drink industry, and is projected to continue into 2020.
- Consumers are increasingly drinking white tequilas, reposados, anejos, and now mezcal as well.
- This trend is driven by factors such as improved economy, enabling consumers to be "more adventuresome in their purchases," along with the trend of "more people looking for affordable luxury" like those offered by premium tequilas.
- Female consumers are also helping to drive the growth of the wider tequila trend as they believe it’s a healthier spirit.
- Additionally, "creative marketing and merchandising efforts" also drive sales in this category.
Hard Seltzer Trends
Predicted Market Growth
- IWSR predicts that hard seltzer volumes will "more than triple to 281 million cases, by 2023" from about 82.5 million cases in 2019.
- Hard seltzer sales in the United States is predicted to grow at annual growth rate of 66 percent from $550 million to reach $2.5 billion in 2021.
- The age group predicted to drive this trend are "25-34 year old and wealthier consumers earning more than $150,000 a year index."
- There's also the "increasing number of health conscious consumers which seems to be a primary driver for the rising interest in hard seltzer."
- The rising demand for flavored varieties is also expected to drive growth in the category.
Your research team provided the most talked about alcohol trends by industry experts, authoritative industry sources like Rabobank, and publications such as MarketWatch, Business Insider, and Grocery Drive, as well as the predicted market growth and growth drivers of the hard seltzer segment of the alcohol industry.