Trends on tap: What’s happening in the Alcoholic Beverage Space?
According to Nielsen, alcoholic beverage growth in 2019 is moderate and brand loyalty is declining. With established beverage choices no longer being reached for, Nielsen’s new survey found that 47% of legal age drinkers were actively looking to reduce their alcohol consumption.
So how can beverage brands stand out and stay in shopping baskets? And what can brands, bars, retailers and restaurants do to bring customers back? It’s time to start rethinking the alcohol retail strategy. Today’s consumers are seeking experiences. After all, innovation is everywhere and the abundance of choice in the CPG space has never been so diverse or fragmented.
From craft beers to artisanal gins, Forbes predicts that the growth of taprooms globally – the space in which a brewery serves its beer to customers – means bigger brewers will slowly turn to contract brewing to keep up with consumer buying patterns. Monthly subscriptions to receive a curated case of craft beers, for example, is an innovative way of tapping into consumer brand disloyalty.
Another trend challenging the adult beverage category is pre-mixes. Convenience often trumps cost and being able to simply pick up ready-to-drink adult beverages from a shop, instead of heading to a bar or relying on a mixologist, is changing how and where consumers drink. What’s more is that alternative packaging options—cans, boxes and Tetra Paks – also have a big role to play, providing a more convenient and portable option for shoppers.
Today’s consumers are seeking out beverage brands that smartly tap into their changing lifestyles patterns. Organic, low carb, sugar-free, authentic, locally-grown. The market for healthier and homemade drink alternatives is on the rise with functional CPGs, like kombucha, claiming profits fast. According to a new QY Research report, the global kombucha market is predicted to grow at a massive CAGR of 28.0% over the next 7 years and is likely to reach around US$ 5760 Mn by the end of 2025.
Today’s profits, tomorrow’s products
Thinking outside the bottle
- Consumers are tapering their alcohol consumption. Brands and retailers will need to innovate to meet changing consumer preferences.
- Health and wellness are on the rise – healthier beverage options like kombucha are becoming more readily available. Where does your product fit in?
- In a market flooded by quirky craft alternatives, consumers are choosing to spend their money on more interesting and innovative beverage options with a story to tell. Share your product and your business journey to engage and connect with consumers.