5 Trends to Watch 2024: Alcohol
Make some room tequila and whiskey, vodka is going mainstream! This year, we expect all three of these spirits to play a significant role in the alcohol segment and vodka to come into the spotlight with its appealing neutral base.
Check Out Our 5 Trends to Watch in 2024 Featuring Alcohol:
1. Wine’s Growth Staying Strong
Wine-based alcohol products have seen a 47.41% CAGR growth over the past 3 years in the US. With continued innovation in the RTD space, brands are exploring different wine-flavor combinations to elevate the drinking experience.
Fruit flavors have dominated product launches since 2018 — with mainstream citrus flavors topping the ranks across beer, flavored malt beverages (FMB) and spirits. Whereas beer and FMB categories see exotic fruit flavors coming into play, spirits lean into berry and summer fruit profiles. Orange and Mango stole the spotlight across categories since 2018. (Innova Market Insights)
3. Inflation & Luxury Spending
While the RTD alcohol market is seeing volumes flattening, the value of the segment continues to grow as brands and consumers focus on premiumization cues, including spirit-based innovation. IWSR reports brands are expanding from a focus on vodka toward the inclusion of tequila and whiskey, bigger flavor impact, and higher ABVs.
4. Vodka Goes Mainstream
Despite the influx of tequila and whiskey-based RTDs, vodka continues to be a go-to for spirit-based innovation, thanks to vodka’s neutral base to formulate against. Espresso Martinis stole the lead in vodka-based RTDs, and foodservice and retail brands innovated against the growing at-home recipes seen across social media.
5. Low & No Gaining Traction
Alcoholic spirits provide relaxation and stress relief, promoting emotional wellbeing. As health consciousness rises more consumers embrace low and no alcoholic options for guilt-free socializing. Non-alcoholic launches grew more than twice as fast as low-alcohol beverages, increasing 28% CAGR (Q1/2017 to Q1/2022) vs 13% CAGR. (Innova Market Insights)
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Visit our market solutions page to learn more about our expertise and how Synergy can help you from concept ideation to full-scale commercialization.insights