Beverages: Five Key Trends Shifting the Beverage Alcohol Market in 2025

Why it is the topic trending

• Evolving Consumer Behavior: The fundamental shift in how consumers approach beverage alcohol, driven by factors like health consciousness, economic pressures, and changing social norms, is a key driver.

• Global Market Dynamics: The contrasting performance of mature and emerging economies and the shifting influence of different channels are shaping the market's trajectory.

• Technological Impact: The increasing role of digital platforms in influencing purchasing decisions is a significant factor transforming the industry.

• IWSR's Identification: IWSR, a leading authority, has identified these changes as crucial trends defining the beverage alcohol market in 2025.

Overview:

The article from IWSR highlights the "subdued but opportunity-rich" environment of the 2025 global beverage alcohol market, driven by a significant evolution in how consumers engage with the category. This overarching shift encompasses new moderation strategies, the intensifying focus on developing markets, the rise of casual consumption occasions, a recalibration of premiumisation trends, and the profound impact of digital channels on purchasing behaviors. These interconnected facets represent a major transformation in the beverage alcohol landscape.

Detailed Findings:

• The Evolving Landscape: New moderation strategies: Consumers are increasingly adopting habitual control over their alcohol intake, leading to lighter consumption, temporary abstinence, and single-category occasions. This evolution is fueling the rapid growth of the no/low alcohol segment.

• The Evolving Landscape: Growth axis shift intensifies: Developing beverage alcohol markets are becoming the primary engines for value growth, driven by demographic and economic factors, while mature markets face more subdued prospects.

• The Evolving Landscape: The rise of casual consumption: A shift towards more relaxed and spontaneous drinking occasions is reshaping category preferences, benefiting options like rosé, Prosecco, bitters, and RTDs.

• The Evolving Landscape: Premiumisation slowing, but beer stands out: While premiumisation trends are adjusting, price-competitive premium beer and cider are performing well. The market sees both downtrading among lower-income consumers and resilience at the high end with status spirits.

• The Evolving Landscape: Channel shifts impacting purchasing decisions: The on-trade is showing signs of recovery, and digital platforms are playing a pivotal role in guiding both online and offline alcohol purchases through research focused on price and product discovery.

Key Success Factors of Product (Trend):

• Alignment with Evolving Consumer Habits: Brands that cater to moderation, casual occasions, and value considerations will resonate with changing consumer behavior.

• Strategic Focus on Growth Regions: Prioritizing investment and tailored strategies for developing markets will be essential for value growth.

• Effective Digital Engagement: Leveraging online platforms to inform and influence consumers across all purchase channels is crucial.

• Price-Value Proposition: Offering products that balance quality and affordability will be key in the current economic climate.

• Adaptability and Market Insight: A nuanced understanding of specific market dynamics and the ability to adapt strategies accordingly will be paramount.

Key Takeaway:

The beverage alcohol market in 2025 is undergoing a significant evolution across consumption patterns, geographic growth drivers, occasion-based preferences, and the influence of digital technology. Success for brands will depend on strategically adapting to this evolving landscape by understanding and responding to these interconnected shifts in consumer behavior and market dynamics.

Main Trend:

The Evolving Landscape of Beverage Alcohol Consumption

Description of the Trend (please name it):

The Great ReCalibration: This overarching trend encapsulates the fundamental changes occurring in the beverage alcohol market, driven by a confluence of factors including evolving consumer health consciousness and lifestyle preferences, shifting global economic power, the rise of digital influence, and a re-evaluation of traditional consumption occasions and premiumisation. It signifies a comprehensive recalibration of how, where, and why consumers choose to drink alcohol.

What is Consumer Motivation:

• Wellness and Balance: Driving moderation and the exploration of no/low alcohol options.

• Value and Practicality: Influencing choices in a context of economic uncertainty and casual settings.

• Convenience and Accessibility: Favoring ready-to-drink formats and leveraging digital resources.

• Social Connection and Enjoyment: Remaining key drivers, but adapting to new consumption norms.

• Informed Choices: Seeking information and transparency through digital platforms.

What is Driving Trend:

• Economic Headwinds: Persistent inflation and geopolitical tensions impacting purchasing power.

• Demographic and Economic Shifts: Growth in emerging markets and changing consumer affluence.

• Technological Advancements: The pervasive influence of digital platforms on information and purchasing.

• Changing Social Norms: A move towards more casual and health-conscious lifestyles.

• Product Innovation: The development and marketing of a wider range of beverage options.

What is Motivation Beyond the Trend:

Beyond immediate preferences and circumstances:

• Long-Term Health and Well-being: A sustained shift towards more mindful consumption habits.

• Seeking Authentic Experiences: Prioritizing quality and connection over traditional status markers.

• Desire for Convenience and Flexibility: Adapting alcohol consumption to fit modern, busy lifestyles.

• Global Citizenship and Exploration: Interest in diverse beverage options from emerging markets.

Description of Consumers Article is Referring To:

The article refers to a global consumer base navigating a changing landscape of beverage alcohol consumption, influenced by various factors.

• Who are them: Global beverage alcohol consumers adapting to new market dynamics.

• What kind of products they like: Increasingly diverse, including no/low alcohol, RTDs, value-conscious premium options, and high-end spirits.

• What is their age?: Younger adults are key drivers of moderation and RTD trends; Millennials are significant for on-trade recovery.

• What is their gender?: Not explicitly segmented, but trends likely affect all genders.

• What is their income?: Influences choices, with lower-income consumers downtrading and higher-income being more resilient or seeking status spirits.

• What is their lifestyle: Ranging from health-conscious to convenience-seeking and those prioritizing casual socializing.

• What are their category article is referring shopping preferences: Beverage alcohol.

• Are they low, occasional or frequent category shoppers: Encompasses a wide range of consumption frequency adapting to moderation.

• What are their general shopping preferences-how they shop: Heavily influenced by online research for price and product information, impacting both online and offline purchases.

Conclusions:

The beverage alcohol market in 2025 is undergoing a significant transformation characterized by evolving consumer behavior, shifting global dynamics, and the increasing influence of technology. Brands that recognize and strategically adapt to this evolving landscape will be best positioned for success.

Implications for Brands:

• Embrace Diversification: Offer a broader range of products catering to different consumer needs and occasions, including no/low alcohol options.

• Prioritize Emerging Markets: Develop tailored strategies and investments for high-growth developing economies.

• Optimize Digital Engagement: Build a strong online presence and leverage digital platforms to influence consumer decisions.

• Focus on Value and Accessibility: Offer products that provide quality and meet different price points in the context of economic uncertainty.

• Be Agile and Responsive: Continuously monitor market trends and adapt strategies to meet evolving consumer preferences.

Implication for Society:

• Potential for Healthier Consumption Habits: The rise of moderation could lead to positive public health outcomes.

• Economic Opportunities in Developing Nations: Growth in these markets can contribute to economic development.

• Changing Social Norms Around Alcohol: Consumption patterns are adapting to modern lifestyles and values.

Implications for Consumers:

• Greater Choice and Variety: Access to a wider array of beverage options, including more no/low alcohol alternatives.

• More Informed Purchasing Decisions: Digital tools provide greater transparency and product information.

• Options for Different Occasions: Products tailored to both formal and increasingly casual settings.

Implication for Future:

• Emerging Markets as Key Growth Drivers: Their importance will continue to increase.

• Sustained Moderation Trends: Mindful drinking is likely to remain a significant factor.

• Digital Dominance in Purchase Influence: Online platforms will become even more critical.

Consumer Trend (name, detailed description):

• Name: The Holistic Drinker

• Detailed Description: Consumers are adopting a more holistic approach to beverage alcohol, considering not just the product itself but also its impact on their health, lifestyle, social occasions, and budget. This encompasses moderation, mindful choices based on the occasion, and seeking value and convenience.

Consumer Sub Trend (name, detailed description):

• Name: The Digitally Savvy Shopper

• Detailed Description: Consumers are increasingly reliant on digital platforms for every stage of their beverage alcohol journey, from initial discovery and research to price comparison and, in some cases, direct purchase. This digital fluency profoundly impacts brand engagement and purchasing decisions across all channels.

Big Social Trend (name, detailed description):

• Name: The Global Economic Rebalancing

• Detailed Description: The beverage alcohol market is significantly impacted by the shifting economic power from traditionally dominant mature markets towards rapidly growing emerging economies, requiring brands to adapt their strategies to this evolving global landscape.

Worldwide Social Trend (name, detailed description):

• Name: The Rise of Conscious Consumption Cultures

• Detailed Description: Across the globe, there's a growing social trend towards more conscious and responsible consumption habits, extending beyond just alcohol to encompass broader health and ethical considerations, influencing how individuals approach their choices.

Social Drive (name, detailed description):

• Name: The Pursuit of Balanced Lifestyles

• Detailed Description: Consumers are driven by a desire to achieve more balanced lifestyles, integrating alcohol consumption in a way that aligns with their health and wellness goals, social activities, and financial considerations, leading to more nuanced and flexible drinking patterns.

Learnings for brands to use in 2025:

• Invest in Holistic Product Development: Create offerings that cater to diverse needs, including no/low alcohol for health-conscious consumers and convenient options for casual occasions.

• Focus on Digital-First Marketing: Develop robust digital strategies that encompass SEO, social media engagement, online advertising, and partnerships with digital influencers to reach digitally savvy shoppers.

• Tailor Strategies for Emerging Economies: Conduct in-depth market research to understand the unique preferences and consumption patterns in key developing regions and adapt product portfolios and marketing accordingly.

• Communicate Value Clearly: Emphasize the quality and benefits of products at different price points, especially highlighting the value proposition of premium-plus beer and cider in the current economic climate.

• Embrace Agility and Data-Driven Insights: Implement systems to continuously monitor market trends, gather consumer data, and rapidly adapt strategies to remain competitive in this evolving landscape.

Strategy Recommendations for brands to follow in 2025:

• Develop a Comprehensive No/Low Alcohol Portfolio: Introduce innovative and appealing options across different beverage categories to capitalize on the growing moderation trend.

• Invest in Market-Specific Digital Strategies: Create localized digital marketing campaigns that resonate with the specific cultural nuances and online behaviors of consumers in key emerging markets.

• Strengthen Partnerships with E-commerce Platforms: Collaborate with online retailers and delivery services to enhance product visibility and accessibility for digitally inclined consumers.

• Optimize On-Trade Presence in Recovering Markets: Develop strategic partnerships with bars and restaurants to promote key brands and leverage the resurgence of on-premise consumption.

• Implement Flexible Pricing and Promotion Strategies: Utilize data analytics to understand price sensitivities in different market segments and implement targeted promotions to drive volume and value.

Final sentence (key concept) describing main trend from article (which is a summary of all trends specified):

The beverage alcohol market in 2025 is fundamentally being reshaped by an evolving landscape of consumer behavior, global economic shifts, and the pervasive influence of digital technology, demanding strategic adaptation across the industry.

What brands & companies should do in 2025 to benefit from trend and how to do it:

To thrive in the evolving beverage alcohol market of 2025, brands and companies must adopt a proactive and adaptable approach. This involves prioritizing innovation in response to the growing moderation trend, strategically targeting the significant growth opportunities in emerging economies with tailored product and marketing strategies, fully embracing digital platforms to connect with and influence consumers throughout their purchasing journey, offering compelling value propositions across different price points, and fostering a culture of agility and data-driven decision-making to navigate this dynamic landscape effectively. By understanding and responding to these interconnected shifts in consumer behavior and market dynamics, brands can position themselves for sustainable growth and success in the years ahead.

Final Note: Core Trend

• Name: The Evolving Landscape of Beverage Alcohol Consumption

• Detailed Description: The fundamental shift in how, where, and why consumers are choosing to drink alcohol, encompassing moderation, changing occasion preferences, geographic shifts in growth, and the impact of digital technology.

Final Note: Core Strategy

• Name: Adaptive and Consumer-Centric Approach

• Detailed Description: Brands must be agile and prioritize a deep understanding of evolving consumer needs and preferences across different markets and channels to remain competitive and drive growth.

Final Note: Core Industry Trend

• Name: The Blurring of Consumption Norms

• Detailed Description: Traditional norms around alcohol consumption are becoming less rigid, with consumers adopting more flexible and nuanced approaches based on health, lifestyle, and occasion.

Final Note: Core Consumer Motivation

• Name: Balanced Choices in a Connected World

• Detailed Description: Consumers are motivated by the desire to make balanced choices that align with their health and wellness goals, while also seeking value, convenience, and enjoyable experiences in a world increasingly influenced by digital information.

Final Conclusion:

The beverage alcohol market in 2025 presents a dynamic and complex environment marked by significant evolution. By embracing an adaptive and consumer-centric approach, focusing on key growth areas like emerging markets and the no/low alcohol segment, leveraging the power of digital engagement, and understanding the nuances of evolving consumption norms, brands can successfully navigate this shifting landscape and unlock substantial opportunities for growth and innovation.

Core Trend Detailed:

• Description: The Evolving Landscape of Beverage Alcohol Consumption encapsulates a profound transformation in the global beverage alcohol market, driven by a complex interplay of shifting consumer behaviors, changing global economic dynamics, and the pervasive influence of digital technology. This overarching trend signifies a departure from traditional consumption patterns towards more nuanced and intentional choices regarding when, where, and how alcohol is consumed, reflecting a fundamental recalibration across the industry.

• Key Characteristics of the Trend:

  • Mainstream Moderation: A widespread adoption of strategies to control alcohol intake, impacting consumption frequency and intensity across all demographics.

  • Shift in Growth Axis: Developing economies are emerging as primary drivers of value growth, overshadowing the traditionally dominant mature markets.

  • Casualization of Consumption: A preference for informal and spontaneous drinking occasions is reshaping category popularity and product formats.

  • Value-Driven Premiumization: Consumers are increasingly seeking accessible premium options, as evidenced by the resilience of beer and cider.

  • Digital Influence Dominance: Online platforms are playing an increasingly pivotal role in informing and guiding consumer purchasing decisions across all channels.

• Market and Cultural Signals Supporting the Trend:

  • Significant Growth in No/Low Alcohol: The rapid expansion of this segment clearly indicates a consumer demand for alternative options.

  • Strong Performance in Emerging Markets: Robust volume and value growth in regions like India and Southeast Asia underscore their increasing importance.

  • Popularity of RTDs: The continued success and projected growth of ready-to-drink beverages reflect the demand for convenience and casual consumption.

  • Downtrading and Value Seeking: Shifts in consumer spending patterns highlight the importance of price competitiveness and perceived value.

  • Extensive Online Research: The high percentage of consumers researching online before purchase demonstrates the power of digital influence.

• How the Trend Is Changing Consumer Behavior:

  • Conscious Intake Control: Consumers are actively managing their alcohol consumption for health and lifestyle reasons.

  • Embracing New Occasions and Formats: A greater openness to consuming different types of beverages in various settings.

  • Increased Reliance on Digital Information: Consumers are using online resources for product discovery, price comparison, and reviews.

  • Prioritizing Convenience and Versatility: A preference for easy-to-consume and adaptable beverage options.

  • Seeking Value and Making Informed Choices: Consumers are more discerning about their purchases, balancing quality and price.

• Implications Across the Ecosystem:

  • For Brands and CPGs: Requires innovation in product development (especially no/low and RTDs), tailored marketing for diverse markets, and a strong digital-first approach to consumer engagement.

  • For Retailers: Need to adapt product assortment to reflect changing consumer preferences, enhance online and omnichannel capabilities, and provide informative digital resources for shoppers.

  • For Consumers: Will have access to a wider variety of beverage choices catering to different needs and occasions, will be better informed through digital platforms, and may experience shifts in product availability and pricing.

Strategic Forecast:

• Emerging economies will become even more critical for global growth, necessitating significant strategic focus and investment.

• The no/low alcohol category will continue its rapid expansion and diversification, becoming a mainstream segment.

• Digital platforms will further solidify their role as the primary source of product information and a key channel for sales influence.

• Value will remain a dominant factor in consumer decision-making, requiring brands to carefully balance premiumization with affordability.

• The on-trade will evolve to cater to new consumer preferences and behaviors, potentially emphasizing experience and more casual formats.

Final Thought (summary):

The beverage alcohol market in 2025 is fundamentally being reshaped by an evolving landscape of consumer behavior, global economic shifts, and the pervasive influence of digital technology, demanding strategic adaptation across the industry.

Source: https://www.theiwsr.com/insight/five-key-trends-shifting-the-beverage-alcohol-market-in-2025/