{"id":13568,"date":"2022-10-06T08:30:09","date_gmt":"2022-10-06T13:30:09","guid":{"rendered":"http:\/\/www.navitor.com\/blog\/?p=13568"},"modified":"2024-06-27T11:44:44","modified_gmt":"2024-06-27T16:44:44","slug":"key-trends-creating-a-stir-in-the-alcoholic-beverage-market","status":"publish","type":"post","link":"https:\/\/www.navitor.com\/blog\/key-trends-creating-a-stir-in-the-alcoholic-beverage-market\/","title":{"rendered":"Key Trends Creating a Stir in the Alcoholic Beverage Market"},"content":{"rendered":"

\"\"<\/p>\n

Never stagnant, the alcoholic beverage industry has proven itself to also be one of the most crisis-proof consumer goods categories. When COVID restrictions shut the doors of bars and restaurants, off-premise sales of alcohol soared. Conversely, non-alcoholic and low-alcohol beverages are growing in popularity, prevalent among Millennials and Gen Zers \u2013 who are drinking less than other generations did at their age \u2013 as well as the \u201csober curious.\u201d Significant supply chain issues, climate change and even a pandemic has not slowed the growth of this resilient industry.<\/p>\n

A market on fire<\/strong><\/h2>\n

Although more and more people are becoming health-conscious, pulling back on their alcohol consumption, or stopping altogether, as well as a steady rise in the use of cannabis products, the industry remains unscathed by folks opting for drinking less. Industry experts anticipate the growth rate to be as much as or greater than four percent each year for at least the next five years. According to prnewswire.com<\/a>, the\u00a0craft spirits market\u00a0share is expected to increase by more than $36 billion from 2020 to 2025,\u00a0and that segment\u2019s growth momentum will accelerate at a CAGR of more than 22%<\/p>\n

From 2001 to 2020<\/a>, the winery industry gained nearly 4,000 new establishments, which represented a 371% increase. The brewery industry opened almost 4.7K new establishments (1,185%), and the distillery industry netted more than 1.1K new establishments (1,789%).<\/p>\n

Market trends<\/strong><\/h2>\n

Some very interesting developments are taking shape with beer, wine and spirits, and now more than ever, alcohol brands are being forced to re-examine their target audience, the products they offer, their image and how they are showing up in the marketplace in order to effectively compete.<\/p>\n

\"\"<\/h2>\n

Smaller portions and moderation<\/strong><\/h2>\n

With the rise in cannabis consumption and the competition it brings, the alcoholic beverage industry needs to reconsider how products are packaged, and apply more thoughtful features that will appeal to customers. Cannabis is touted as a healthier alternative to alcohol, and for the beverage industry to compete, they\u2019ll need to use strategic measures like introducing smaller packaging sizes and serving options. The industry also faces a moderation movement. By offering smaller serving options, brands can balance the consumer moderation desire in both new and mature drinkers.<\/p>\n

Consumers are looking for ethical brands<\/strong><\/h2>\n

Solidarity with local brands and businesses was a key trend during the pandemic, and is one that is closely associated with consumers\u2019 preferences around sustainable product packaging and ethical practices. IWSR<\/a>\u2019s consumer research shows that 48% of U.S. alcohol drinkers say their purchase decisions are positively influenced by a company\u2019s sustainability and\/or their environmental initiatives. Sustainable packaging solutions have been at the top of corporate and social responsibility agendas in the drinks industry for many years. Consumers are increasingly looking for alcoholic beverage companies to show a clear commitment to sustainable practices. Local brands can reinforce their status for the long term by emphasizing sustainability, quality and community values on their packaging.<\/p>\n

\"\"<\/h2>\n

Plenty are ready for ready-to-drink<\/strong><\/h2>\n

You may have noticed pre-mixed cocktails are taking over store shelves and commercial ad space. A burgeoning fourth category of alcoholic beverages, ready-to-drink (RTD) beverages, have seen sales increases from seven percent in 2019 to 11 percent for the first half of last year, with several sources<\/a> indicating that the market will continue to grow. Checking out the latest goings-on inside the beer, wine and spirits industry you\u2019ll definitely stumble across the increasing popularity of RTD selections. Interestingly, these options have been around for a long time, but they are really gaining popularity right now. To give you a better idea of just how popular alcoholic RTD beverages have become, Nielsen notes that the sales of malt-based cocktail variants have grown by 597 percent compared to last year. Also on the rise, hard seltzer RTD sales are at 193 percent growth, while canned wine sales increased by 77 percent.<\/p>\n

Driving shelf disruption and creating a stir <\/strong><\/h2>\n

In order for beverage alcohol brands to compete in an overly competitive market, deliver exceptional experiences and differentiate their brand, they must pull out all the stops at every avenue possible. Starting with labels and packaging, moving through points-of-purchase at retail stores all the way to designing the right atmosphere at on-site tasting rooms and events, print materials set the tone, build excitement, tell a story and make that vital impression with retail customers. Additionally, many alcohol brands find incredibly receptive customers at music festivals, sporting events and large seasonal gatherings. By enhancing an attendee\u2019s enjoyment, these brands know how to secure their place in the memories of consumers. Use of their product during festive and meaningful events makes an impression that lasts.<\/p>\n

According to Forbes, presenting a brand consistently across all platforms can increase revenue<\/p>\n

by up to 23%. Ensuring that a brand\u2019s products, packaging, online presence, POP advertising and marketing materials all send a uniform message about the brand\u2019s identity and its core values is essential.<\/p>\n

\"\"<\/h2>\n

Top print products<\/strong><\/h2>\n

Opportunities for print are really brewing in this market. The top print products listed below merely scratch the surface of what\u2019s needed for the alcoholic beverage brands to show up front and center.<\/p>\n