Beverages: Shaken, Not Stirred: Unpacking the Trends Stirring America's Cocktail Culture

Why it is the topic trending: The Thriving Cocktail Scene: Why Mixed Drinks are the Lucrative Choice in the US On Premise

• Cocktails are a Lucrative and Exciting Segment: The article highlights that cocktails are currently one of the most exciting and financially rewarding areas within the US On Premise market. This makes it a crucial topic for anyone involved in bars, restaurants, or the spirits supply chain.

• Cocktails are Thriving Amidst Shifting Consumer Habits: While beer and wine are facing challenges in keeping up with evolving consumer preferences, cocktails are experiencing a significant surge in popularity, indicating a strong and growing trend.

• Cultural High Driven by Various Factors: The popularity of cocktails is fueled by various cultural influences, including the rise of celebrity mixologists, cocktail competitions, and even streaming shows dedicated to the art of cocktail creation, signifying a broader movement rather than just a fleeting trend.

• Attraction of a Key Demographic: Cocktail drinkers are identified as a desirable demographic, primarily consisting of younger consumers (Gen Z and late millennials) aged 21 to 54. These individuals are characterized as adventurous, brand-aware, and willing to spend more for quality beverages, making them a valuable target market.

Overview: America's Cocktail Renaissance: Trends and Opportunities in the On Premise Market

The article delves into the current state of America's cocktail culture within the On Premise market, highlighting the significant growth and revenue potential of mixed drinks compared to other alcoholic beverages like beer and wine. It emphasizes the key demographic driving this trend – young, curious, and spending consumers – and explores the factors influencing their choices, including taste, price, quality, and brand recognition. The piece also examines spirit preferences, popular cocktails, profitability metrics, and the importance of timing and strategic decision-making for operators looking to maximize their success in this dynamic and lucrative segment.

Detailed findings: Decoding the Data: Key Statistics and Trends in Cocktail Culture

• Roughly one in three Americans aged 21 to 54 are cocktail drinkers, with Gen Z and late millennials leading the charge.

• Cocktails account for 34% of total spirits value in the On Premise, generating over $14,000 in average outlet revenue over just 12 weeks.

• The average price per cocktail serve is $13.75, outpacing wine, neat spirits, and nearly doubling beer.

• Taste is the top driver of cocktail choice for 71% of drinkers, but price, quality, and brand recognition also play significant roles.

• Nearly half of consumers (almost 50%) consider quality a deciding factor, and over a quarter (over 25%) are brand-sensitive.

• Two-thirds of cocktail drinkers check the menu before ordering, especially younger guests, highlighting the menu's role as a sales tool.

• When guests are unsure, 72% turn to the bar staff for guidance, making bartenders a significant influence on decision-making.

• Tequila is the preferred base spirit for 46% of cocktail drinkers, followed by flavored vodka and whiskey.

• The Margarita remains the most popular classic cocktail across all age groups, with 55% of over-55s choosing it.

• The Caipirinha drives the highest average check value among cocktails, while the Manhattan and Negroni command the highest prices per serve.

• Saturday leads in cocktail volume and check value, but Thursday is the most lucrative non-weekend day.

• Cocktail sales peak between 6pm and 10pm, but there's revenue potential earlier in the day with drinks like the Bellini and Mimosa performing well during brunch hours (11am to 3pm).

Key success factors of product (trend): The Perfect Pour: Factors Behind the Success of Cocktails in the On Premise

• High Revenue Potential: Cocktails generate significant revenue for On Premise establishments, outpacing other alcoholic beverages in terms of average spend and check value.

• Appeal to a Valuable Demographic: The popularity of cocktails among young, adventurous, brand-aware, and spending consumers presents a lucrative market for operators.

• Flexibility and Variety: The wide range of flavors, formats, and price points within the cocktail category offers unmatched flexibility to cater to diverse consumer preferences and occasions.

• Upselling Opportunities: Well-trained and knowledgeable bartenders can significantly influence customer decisions and drive sales of higher-margin cocktails.

• Menu as a Marketing Tool: An enticing and informative cocktail menu that highlights quality ingredients and premium brands can effectively attract and guide customer choices.

Key Takeaway: Strategize Your Stir: Leveraging Data to Maximize Profitability in the Cocktail Category

The key takeaway is that while the cocktail market might seem complex, it offers significant profitability if approached strategically. By understanding the target audience, peak times, spirit preferences, and profitability metrics, and by empowering staff with product knowledge, operators can leverage data to guide their decisions and maximize revenue from this thriving segment.

Main trend: The Cocktail Crown: Identifying the Dominant Trend in On Premise Beverages

The main trend in the On Premise beverage market is the significant growth and increasing profitability of cocktails, establishing them as a leading segment that outperforms traditional options like beer and wine, driven by a younger, more adventurous consumer base.

Description of the trend (please name it): The Cocktail Renaissance: Describing the Resurgence of Mixed Drinks

The Cocktail Renaissance: This trend signifies a renewed and heightened interest in mixed alcoholic drinks within the US On Premise market. It is characterized by increased consumer demand, higher average spending compared to other beverage categories, a vibrant and evolving culture supported by mixology and media, and a strong appeal to younger demographics who are willing to pay for quality and unique experiences.

Description of consumers article is referring to: Who's Ordering Up? Describing the Cocktail-Drinking Consumer

• Likely individuals aged 21 to 54: This is the core age range mentioned in the article, with a significant portion falling into Gen Z and late millennials.

• Adventurous and curious drinkers: The article describes them as such, indicating a willingness to try new and different cocktails.

• Brand-aware consumers: They pay attention to the brands of spirits and ingredients used in their drinks.

• Willing to pay for quality: Price is a consideration, but quality is a significant deciding factor, suggesting a willingness to spend more for well-made cocktails with premium ingredients.

• Consumers influenced by taste: Taste is the primary driver of their cocktail choices.

• Consumers who check the menu before ordering: Younger guests especially rely on the menu for information and inspiration.

• Individuals who seek guidance from bar staff: When unsure, they trust bartenders for recommendations.

• Who are them: Roughly one in three Americans aged 21 to 54, with Gen Z and late millennials leading the charge. They are adventurous, brand-aware, and willing to pay for quality.

• What kind of products they like: They enjoy a wide variety of cocktails, with a preference for drinks made with tequila, flavored vodka, and whiskey as base spirits. They appreciate quality ingredients and are often drawn to classic cocktails like the Margarita, Mimosa, Daiquiri, and Piña Colada.

• What is their age?: Predominantly between 21 and 54 years old, with a strong representation from Gen Z (born roughly 1997-2012) and late Millennials (born roughly 1990s).

  What is their gender?: While not explicitly stated, the consumption of cocktails is a widespread trend likely encompassing a diverse range of genders within the mentioned age group.

• What is their income?: Their willingness to pay a higher average price for cocktails ($13.75 per serve) and prioritize quality suggests a disposable income that allows for spending on premium beverage experiences.

• What is their lifestyle: They likely lead active social lives, frequenting bars and restaurants where cocktails are a part of the experience. Their digital engagement is implied by their awareness of trends and their tendency to check menus (often available online).

• What are their shopping preferences in the category article is referring to: They are influenced by taste, quality of ingredients, and brand recognition. They often rely on menus and bartender recommendations to make their choices.

• Are they low, occasional or frequent category shoppers: Given that one in three Americans in the specified age range are cocktail drinkers and their consumption drives significant revenue, they are likely to be occasional to frequent shoppers in the On Premise beverage category.

• What are their general shopping preferences - how they shop products, shopping motivations): They value quality and are willing to spend more for it. They are informed consumers who research menus and seek recommendations, suggesting a desire for a good experience and value for their money.

Conclusion: The primary consumers driving the cocktail trend in America's On Premise market are younger adults, particularly Gen Z and late millennials, who are adventurous in their drink choices, aware of brands, and willing to pay for high-quality cocktails. They are influenced by taste, menu descriptions, and bartender recommendations.

What is consumer motivation: The Cocktail Craving: What Drives Consumers to Choose Mixed Drinks?

• Taste: The primary motivator, with consumers seeking enjoyable and satisfying flavor profiles.

• Quality: A significant factor, indicating a preference for well-made drinks with good ingredients.

• Brand Recognition: The appeal of specific spirit brands influences their choices.

• Adventure and Curiosity: Younger consumers are particularly keen on trying new and different cocktails.

• Social Experience: Cocktails are often associated with social gatherings and enhance the overall experience of being in a bar or restaurant.

What is driving trend: Stirring the Scene: Factors Fueling the Cocktail Culture Boom

• Celebrity Mixologists: Their influence elevates the craft and makes cocktail culture more aspirational.

• Cocktail Competitions: These events showcase innovation and creativity, generating interest among consumers.

• Dedicated Streaming Shows: Media focused on cocktails increases awareness and appreciation for the art of mixology.

• Shifting Consumer Habits: A move away from traditional beer and wine towards more diverse and experience-driven beverage options.

What is motivation beyond the trend: More Than Just a Drink: Deeper Drivers of Cocktail Consumption

• Seeking an Experience: Cocktails offer more than just alcohol; they are an experience encompassing taste, presentation, and atmosphere.

• Self-Expression: Choosing a particular cocktail can be a form of self-expression or alignment with a certain image or occasion.

• Sophistication and Indulgence: Cocktails are often perceived as a more sophisticated and indulgent choice compared to other beverages.

• Social Connection: Sharing cocktails in a social setting can foster connections and enhance the sense of camaraderie.

• Exploration and Discovery: The vast world of cocktails offers opportunities for ongoing exploration and discovery of new flavors and concoctions.

Conclusions: The Art of the Pour: Key Conclusions on America's Cocktail Culture

The cocktail segment in the US On Premise market is not just thriving, but leading the way in terms of revenue and consumer interest, driven by a younger demographic that values taste, quality, and brand recognition. This presents a significant opportunity for bars, restaurants, and suppliers to strategically focus on their cocktail offerings, leveraging data-driven insights on popular spirits, profitable drinks, and optimal timing to maximize their success in this dynamic and lucrative market.

Implications for brands: Spirit Strategies: Implications for Suppliers and On Premise Operators

• Prioritize Tequila and Other Popular Spirits: Ensure an ample supply of tequila, flavored vodka, and whiskey, given their strong preference among cocktail drinkers.

• Focus on Quality and Premium Brands: Highlight the quality of ingredients and feature recognizable premium brands on menus to appeal to discerning consumers.

• Invest in Bartender Training: Equip bar staff with the knowledge and confidence to recommend and upsell higher-margin cocktails, as bartenders are key influencers.

• Optimize Menu Design: Create clear, descriptive, and enticing cocktail menus that showcase ingredients and potentially name-drop premium brands to attract and guide customer choices.

• Pay Attention to Timing and Dayparts: Tailor cocktail offerings and promotions to specific days and times, considering drinks like Mimosas for brunch and Margaritas or Old Fashioneds for weekday evenings.

Implication for society: Cocktail Culture's Current: Broader Societal Shifts Reflected in Drink Choices

• Emphasis on Experience and Craftsmanship: The popularity of cocktails reflects a broader societal appreciation for artisanal products and unique experiences.

• Influence of Media and Popular Culture: Celebrity endorsements, competitions, and shows dedicated to cocktails highlight their cultural significance and influence consumer trends.

• Acceptance and Exploration of Diverse Flavors: The adventurous nature of younger cocktail drinkers suggests a societal openness to experimenting with a wider range of tastes and beverage options.

Implications for consumers: Your Next Sip: What the Cocktail Trend Means for Drinkers

• Wider Variety and Innovation: Consumers can expect a growing array of creative and high-quality cocktail options in bars and restaurants.

• Potential for Higher Prices: The focus on quality and premium ingredients might translate to slightly higher prices for cocktails.

• More Engaging Bar Experiences: With knowledgeable bartenders and well-crafted menus, consumers can look forward to more informed and enjoyable experiences when ordering cocktails.

Implication for Future: The Future of the Pour: What to Expect in America's Cocktail Scene

• Continued Growth of the Cocktail Segment: Mixed drinks are likely to maintain their strong position in the On Premise market, with ongoing innovation and new trends emerging.

• Further Diversification of Spirit Preferences: While tequila is currently leading, other spirits might see increased popularity as new cocktail trends develop.

• Integration of Technology: Expect to see more technology influencing how cocktails are ordered, customized, and even prepared in the future.

Consumer Trend: The Premium Pour:

• Name: Elevated Cocktail Consumption

• Detailed description: Consumers, particularly younger demographics, are increasingly seeking out and willing to pay for high-quality cocktails made with premium spirits and fresh ingredients, valuing the overall experience and taste over just the alcohol content.

Consumer Sub Trend: Tequila's Reign:

• Name: Tequila Top Shelf

• Detailed description: Tequila has become the dominant base spirit in the cocktail market, preferred by a significant portion of cocktail drinkers, indicating a sustained popularity and influence in American cocktail culture.

Big Social Trend: The Experience Economy:

• Name: Immersive Beverage Experiences

• Detailed description: Consumers are increasingly prioritizing experiences, and this extends to their choices of drinks in the On Premise. Cocktails, with their focus on flavor, presentation, and the social setting, align perfectly with this desire for immersive and enjoyable experiences.

Worldwide Social Trend: Global Cocktail Influences:

• Name: Cosmopolitan Palates

• Detailed description: American cocktail culture is increasingly influenced by global trends and flavors, with spirits like tequila and cocktails like the Caipirinha gaining popularity, reflecting a broader consumer interest in diverse and international tastes.

Social Drive: The Quest for Quality and Flavor:

• Name: Taste-Driven Indulgence

• Detailed description: The primary driver behind cocktail consumption is taste, with consumers seeking flavorful and well-crafted drinks that offer a sense of indulgence and satisfaction.

Learnings for brands to use in 2025:

• Emphasize Quality and Brand Story: Highlight the premium nature and unique story behind spirit brands to resonate with quality-conscious consumers.

• Train Bartenders as Brand Ambassadors: Invest in training bartenders to become knowledgeable advocates for specific brands and cocktails.

• Utilize Data to Inform Menu Strategy: Leverage sales data and consumer preference insights to curate a cocktail menu that aligns with local tastes and maximizes profitability.

• Create Enticing Visual Content: Develop high-quality photos and videos of cocktails for menus and social media to attract visually driven younger consumers.

Strategy Recommendations for brands to follow in 2025:

• Offer Signature and Innovative Cocktails: Develop unique and memorable cocktail offerings that differentiate establishments from competitors and cater to adventurous palates.

• Promote Happy Hour and Daypart Specials: Strategically offer cocktail specials during off-peak hours, such as brunch or weekday evenings, to drive traffic and sales.

• Host Cocktail-Themed Events and Workshops: Engage consumers by offering interactive experiences like cocktail-making classes or tasting events to build brand loyalty and generate excitement.

• Collaborate with Local Influencers and Media: Partner with food and beverage influencers to promote cocktail menus and events, reaching a wider and more targeted audience.

Final sentence (key concept) describing main trend from article (which is a summary of all trends specified), and what brands & companies should do in 2025 to benefit from trend and how to do it.: The Cocktail Renaissance is Data-Driven: A Strategic Pour for On Premise Success

The core trend is the significant resurgence and profitability of cocktails in the US On Premise market, driven by a young, quality-conscious demographic; brands and companies in 2025 should strategically leverage data on consumer preferences, popular spirits, and peak times to optimize their cocktail offerings, train knowledgeable staff, and create enticing menus to capitalize on this lucrative opportunity.

Final Note:

• Core Trend: Cocktail Dominance - Mixed drinks are now a leading and highly profitable segment in the On Premise market.

• Core Strategy: Data-Informed Optimization - Utilizing data on consumer behavior and sales metrics is crucial for success in the cocktail category.

• Core Industry Trend: Experience-Focused Consumption - Consumers are increasingly seeking high-quality, immersive beverage experiences.

• Core Consumer Motivation: Taste and Quality Preference - Consumers prioritize flavorful and well-made cocktails using good ingredients.

Final Conclusion:

America's cocktail culture is experiencing a vibrant and data-driven renaissance, presenting a significant business opportunity for the On Premise sector. By understanding the preferences and motivations of today's cocktail drinkers, and by strategically leveraging insights into popular spirits, profitable drinks, and optimal timing, bars, restaurants, and suppliers can craft compelling offerings that not only meet consumer demand but also significantly boost their revenue and solidify their position in this exciting and evolving market. The key to unlocking the full potential of the cocktail category in 2025 lies in a strategic approach that blends creativity in mixology with a deep understanding of consumer behavior and market data.

Core Trend Detailed:

The core trend, "Cocktail Dominance," reflects the undeniable shift in the On Premise beverage landscape where cocktails have risen to become a leading category, surpassing the growth rates and in many cases, the revenue generation of traditional staples like beer and wine. This dominance is fueled by a confluence of factors, including changing consumer preferences, a cultural fascination with mixology, and the willingness of a key demographic to spend more for a quality drink. Unlike the often-static nature of beer and wine consumption, the cocktail market is dynamic, with ongoing innovation in flavors, ingredients, and presentation, keeping consumers engaged and driving continued growth. This trend signifies a maturation of American drinking culture, where consumers are seeking more sophisticated and experience-driven options when they choose to drink out.

Key Characteristics of the Core trend:

• High Revenue Generation: Cocktails contribute a significant portion of overall spirits value and generate substantial average revenue per outlet.

• Strong Performance Among Younger Demographics: Gen Z and late millennials are key drivers of this trend, showing a strong preference for cocktails over other alcoholic beverages.

• Emphasis on Quality and Premiumization: Consumers are increasingly prioritizing well-made cocktails with high-quality spirits and fresh ingredients, indicating a move towards premium beverage choices.

• Menu-Driven Decisions: A well-designed and informative cocktail menu plays a crucial role in attracting customers and guiding their selections.

• Influence of Bartenders: Knowledgeable and engaging bartenders act as key influencers, able to recommend and upsell cocktails effectively.

Market and Cultural Signals Supporting the Trend:

• Growth of Craft Cocktail Movement: The ongoing interest in artisanal cocktails and skilled mixology continues to elevate the category.

• Social Media Visibility: Visually appealing cocktails are highly shareable on social media, contributing to their popularity and trend adoption.

• Media Attention on Cocktail Culture: The increasing presence of cocktail-related content in media, from competitions to streaming shows, reflects and further fuels consumer interest.

• Desire for Unique and Experiential Consumption: Consumers are looking for more than just a drink; they seek a memorable and enjoyable experience in the On Premise.

• Evolution of Palates: Younger generations are showing a greater willingness to experiment with diverse flavors and types of alcohol, leading to increased cocktail consumption.

How the Trend Is Changing Consumer Behavior:

• Increased Spending on Beverages: Consumers are willing to allocate a larger portion of their spending on cocktails compared to less expensive options like beer.

• More Informed Drink Choices: Consumers are engaging more with menus and seeking recommendations, indicating a greater interest in understanding what they are drinking.

• Greater Experimentation with Flavors and Spirits: There is a growing openness to trying cocktails made with different base spirits and featuring unique flavor combinations.

• Higher Expectations for Bar Service: Consumers expect bartenders to be knowledgeable and capable of crafting high-quality cocktails.

• Drinking Earlier in the Day: The rise of brunch culture and the popularity of daytime cocktails like Mimosas and Bellinis indicate a shift in when consumers are choosing to enjoy mixed drinks.

Implications Across the Ecosystem:

• For Brands and CPGs: Opportunity to focus on premium spirits and develop innovative products that cater to the evolving cocktail market; importance of engaging with bartenders and on-premise accounts.

• For Retailers: Need to stock a wider variety of spirits and cocktail ingredients to meet consumer demand for at-home mixology.

• For Consumers: More diverse and high-quality options when drinking out; potential for higher prices for premium cocktails; opportunity to explore a wide range of flavors and drinking experiences.

Strategic Forecast:

• Continued Focus on Craft and Quality: The trend towards premiumization in cocktails is likely to persist, with a greater emphasis on high-quality ingredients and skilled preparation.

• Emergence of New and Unexpected Spirit Categories: While tequila is currently dominant, other spirits could see a surge in popularity as bartenders and consumers explore new cocktail recipes.

• Increased Personalization and Customization: Expect to see more bars offering options for customizing cocktails to individual preferences.

• Integration of Sustainable Practices: There will likely be a growing focus on sustainability in cocktail programs, from sourcing ingredients to minimizing waste.

• Growth of Non-Alcoholic and Low-Alcohol Cocktails: Reflecting broader health and wellness trends, expect to see an expansion of sophisticated non-alcoholic and low-alcohol cocktail options on menus.

Areas of innovation:

• Ingredient Sourcing: Emphasizing local and seasonal ingredients to create unique and high-quality cocktails.

• Mixology Techniques: Exploring advanced techniques and innovative flavor combinations to push the boundaries of cocktail creation.

• Presentation and Garnish: Focusing on visually appealing presentations and creative garnishes to enhance the overall cocktail experience.

• Technology Integration: Utilizing technology for menu displays, ordering systems, and even automated cocktail preparation in some settings.

• Experiential Offerings: Creating themed cocktail menus, tasting flights, or interactive bar experiences to engage consumers.

Final Thought:

The American cocktail culture is dynamic and thriving, driven by a consumer base that values quality, flavor, and experience. For businesses in the On Premise sector, embracing this "Cocktail Dominance" through strategic menu development, investment in staff training, and a keen understanding of consumer preferences is not just a trend to follow, but a clear pathway to significant and sustainable profitability. The key lies in recognizing that cocktails are more than just drinks; they are a reflection of evolving consumer lifestyles and a prime opportunity to create memorable and revenue-generating experiences.

Source: https://cgastrategy.com/on-trend-in-the-on-premise-whats-stirring-americas-cocktail-culture/