Beverages: The On-Premise Evolution: Experience, Authenticity, and the Rise of the Discerning Drinker

Why it is the topic trending: The Conscious Consumption Resurgence

The US on-premise spirits market is experiencing a significant shift, making it a trending topic because consumers are fundamentally re-evaluating their relationship with alcohol and social drinking. This isn't just about what they drink, but why, where, and how.

• Mindful Drinking Movement: There's a growing societal trend towards moderation and mindful consumption, especially among younger demographics. Consumers are increasingly aware of the health implications of excessive alcohol intake and are actively seeking ways to socialize without compromising their well-being. This has led to a surge in demand for high-quality low- and no-alcohol alternatives, as well as a focus on reducing overall consumption frequency and volume.

• The Pursuit of Elevated Experiences: Consumers are no longer satisfied with generic drinking occasions. They crave unique, memorable, and visually appealing experiences that can be shared, particularly on social media. This drives demand for premium products, innovative cocktails, and venues that offer more than just a drink – they offer an atmosphere, a story, and a sense of occasion.

• Demographic Shifts and Evolving Palates: The rise of Gen Z as a significant consumer force is a major driver. This generation exhibits distinct preferences, including a broader repertoire of drinks, a strong desire for flavor exploration, and a high reliance on digital and social media for discovery. Their influence is reshaping product development and marketing strategies, pushing the industry to cater to more diverse and adventurous tastes.

• Economic Realities and Value Perception: Despite inflationary pressures, consumers are willing to spend more on "better" drinks. This "less but better" mantra reflects a shift in value perception, where quality, craftsmanship, and the overall experience justify a higher price point. This trend is forcing brands and venues to focus on delivering tangible value beyond just the alcoholic content.

• Bartenders as Influencers: The role of the bartender has evolved beyond mere mixologists. They are increasingly seen as trusted guides and influencers, particularly in premium settings. Their recommendations and ability to tell a compelling story about a drink or brand directly impact consumer choices, making their advocacy a critical component of market success.

Overview: A New Era for On-Premise Spirits

The US on-premise spirits market is undergoing a dynamic transformation. It's moving away from mass consumption towards a more intentional and experience-driven approach. Spirits remain central to out-of-home drinking, particularly through sophisticated cocktail culture. Consumers are increasingly prioritizing quality over quantity, seeking diverse and adventurous flavor profiles, and valuing transparency and authenticity from brands. This shift is particularly influenced by Gen Z, who leverage social media for discovery and prioritize unique, shareable experiences. The success of brands and venues in this evolving landscape hinges on their ability to adapt to these heightened expectations, focusing on premiumization, innovation in flavors, and empowering the bar staff to be storytellers and influencers.

Detailed findings: Consumer Dynamics Reshaping the Bar Scene

• Spirits Lead On-Premise Choices: More than half (52%) of US on-premise visitors now select spirits, affirming their dominant position in out-of-home drinking occasions. This highlights the sustained consumer preference for spirits over other alcoholic categories when socializing in bars and restaurants.

• Cocktail Culture is a Core Driver: One in three consumers orders a mixed serve when out, making cocktails a pivotal force in driving volume. This underscores the importance of a diverse and appealing cocktail menu as a primary revenue generator for on-premise venues.

• Growth Across Core Spirit Categories: Core spirits such as vodka (26%), whiskey (24%), and tequila (22%) continue to experience year-on-year growth in popularity. This indicates a broad and healthy expansion within the spirits category, suggesting sustained consumer interest across a range of established choices.

• Gen Z's Expansive Repertoire: Gen Z consumers are notably adventurous, consuming an average of eleven brands and five drink categories during out-of-home occasions, which is more than any other demographic. Over a third of Gen Z frequently trials new cocktail styles, showcasing a strong inclination towards diversity and discovery.

• Tequila's Diversified Appeal: Tequila is particularly successful in widening the demographic reach of spirits, showing a strong over-index with Black/African-American and Hispanic drinkers, as well as with consumers under 35. This illustrates its ability to resonate with diverse and younger audiences.

• Margarita's Enduring Popularity (with a Gen Z Twist): The Margarita remains the top cocktail, ordered by over half (54%) of all cocktail drinkers. However, Gen Z exhibits a below-average affinity for Margaritas, pointing to white space for the industry to market alternative, flavor-forward, and visually appealing serves to this specific demographic.

• "Less but Better" is the Spending Norm: Two-thirds (67%) of spirits drinkers are willing to pay more for higher-quality drinks, compared to half (52%) of average consumers. Most on-premise consumers prefer to buy two premium drinks over four standard ones, reinforcing the strong premiumization trend driving value growth in super-premium and ultra-luxury tiers.

• High Expectations for Premium Occasions: While visitation remains robust (77% of spirit drinkers eat out weekly, 69% have a weekly on-premise drinking occasion), loyalty is highly competitive in premium bars and "eatertainment" venues. In these spaces, where frequency is lower but spend per guest is higher, bartender advocacy is key, as guests inclined to trade up are nearly twice as likely to seek staff recommendations.

Key success factors of product (trend): Crafting Compelling Experiences

• Authentic Premiumization: The product must genuinely deliver on its premium promise, not just in price, but in perceived quality, taste, and ingredients. Success hinges on highlighting credible provenance cues and the experiential value derived from the drink, ensuring consumers feel the higher cost is justified.

• Flavor Innovation and Sophistication: Products need to offer diverse, complex, and sometimes unconventional flavor profiles that appeal to an adventurous and evolving palate. This means moving beyond generic sweetness to explore bitter, savory, and unique botanical notes, catering to consumers actively seeking new taste experiences.

• Visual Appeal and "Instagram-ability": For cocktails and serves, visual presentation is paramount. Products that naturally lend themselves to aesthetically pleasing and shareable presentations will succeed. This requires attention to glassware, garnishes, and the overall visual impact, making the drink a piece of content for social media.

• Functional Clarity (if applicable): If a product makes a health or functional claim, it must be clear, transparent, and verifiable. Consumers are scrutinizing ingredients and expecting tangible benefits, so authenticity in functional offerings is key.

• Sustainability and Ethical Sourcing: Products that can demonstrate a genuine commitment to sustainable sourcing, eco-friendly production, and responsible packaging will resonate strongly. Consumers are increasingly integrating their values into purchasing decisions, making ethical considerations a crucial success factor.

Key Takeaway: Elevate the Experience, Embrace Diversity, Empower the Bar

The central takeaway is that the on-premise spirits market is no longer solely about the liquid in the glass; it's about the entire experience surrounding it. Success in 2025 demands that brands and operators elevate this experience through premiumization, actively embrace the diverse and adventurous preferences of new consumer cohorts, particularly Gen Z, and critically, empower the front-line staff, especially bartenders, to be knowledgeable advocates and engaging storytellers. This integrated approach, blending product quality with experiential value and authentic connection, is the path to capturing future market share and loyalty.

Main Trend: The Experiential Premiumization of On-Premise Spirits

The main trend driving the US on-premise spirits market is The Experiential Premiumization of On-Premise Spirits. This trend signifies a shift where consumers are increasingly prioritizing the overall quality, uniqueness, and shareability of their drinking experiences when out, leading them to seek higher-value, premium spirits and cocktails that align with their evolving tastes and social aspirations.

Description of the trend: The Elevated Elixir

The trend is best described as The Elevated Elixir. This refers to a consumer demand that transcends mere alcoholic content, focusing instead on the holistic quality, craftsmanship, and sensory richness of beverages consumed in social settings. It encompasses a willingness to spend more for superior ingredients, innovative flavor profiles, and aesthetically pleasing presentations. "The Elevated Elixir" reflects a conscious choice for "less but better" consumption, where each drink is an intentional indulgence, a discovery, and often, a visual statement. This trend is intrinsically linked to the desire for unique social experiences and the influence of digital platforms in shaping drinking culture.

What is consumer motivation: Beyond the Buzz, Seeking Richer Experiences

• Desire for Self-Expression and Social Currency: Consumers, particularly Gen Z, see their drink choices as an extension of their personal brand and a form of self-expression. They seek unique and visually appealing cocktails that are "Instagram-able," allowing them to create content and share their experiences, thereby gaining social currency and enhancing their online persona.

• Pursuit of Novelty and Discovery: There is a strong intrinsic motivation for exploration. Consumers are increasingly adventurous, eager to try new flavors, categories, and brands. This curiosity drives them to experiment with diverse spirits and cocktail styles, constantly expanding their drinking repertoire and seeking fresh sensory experiences.

• Mindful Well-being and Moderation: A significant motivation is the growing focus on health and wellness. Consumers are more aware of the impact of alcohol and are seeking ways to moderate their intake without sacrificing social engagement. This drives demand for high-quality, flavorful low- and no-alcohol options, as well as a preference for "less but better" alcoholic drinks to avoid negative after-effects.

• Appreciation for Craftsmanship and Authenticity: Consumers are becoming more educated and discerning, valuing the story behind their drink. They are motivated by transparency in sourcing, sustainable practices, and the artisanal craftsmanship involved in producing premium spirits. This reflects a desire for authenticity and a connection to the product's origin and creation process.

• Elevated Social Connection: For many, drinking out is fundamentally a social activity. Consumers are motivated to choose venues and drinks that enhance their social occasions, creating a memorable atmosphere and facilitating meaningful interactions. Premium experiences and unique serves contribute to a sense of occasion and celebratory mood.

What is driving trend: Shifting Values and Digital Convergence

• Gen Z's Influence and Digital Natives: The emerging dominance of Gen Z in the on-premise market is a key driver. Their innate digital literacy means they are highly influenced by social media visuals and peer recommendations. Their openness to new experiences and diverse categories, coupled with a focus on personal branding, is reshaping consumption patterns and accelerating the demand for unique and shareable drinks.

• The Premiumization Imperative: An overarching economic and cultural shift towards valuing quality over quantity is driving this trend. Consumers across demographics are willing to pay more for premium experiences, pushing brands to innovate in higher tiers and focus on the perceived value of their offerings, even in an uncertain economic climate.

• Mainstreaming of Cocktail Culture: The sustained popularity and sophistication of cocktail culture have elevated consumer expectations. Cocktails are no longer niche; they are a central part of the on-premise experience, driving experimentation with mixed serves and fostering an appreciation for complex flavor profiles and skilled bartending.

• Health and Wellness Consciousness: A societal shift towards greater health awareness and mindful living is profoundly influencing drinking habits. The desire to reduce alcohol intake, avoid hangovers, and maintain mental clarity is driving demand for no/low-alcohol options and a more considered approach to alcohol consumption.

• Bartenders as Knowledge Brokers and Curators: The evolving role of bartenders into knowledgeable advocates and curators of experiences is a significant driver. Their ability to recommend, educate, and craft visually stunning drinks directly influences consumer choices and fosters loyalty in premium venues.

What is motivation beyond the trend: Deeper Societal and Personal Aspirations

• Seeking Authenticity in a Curated World: Beyond the immediate trend, there's a deeper motivation to seek genuine authenticity in an increasingly digital and often manufactured world. Consumers want to connect with brands that are transparent, responsible, and align with their values, viewing their purchases as an extension of their identity and ethics.

• Control and Agency in Consumption: The drive for moderation and conscious choices reflects a broader desire for personal control and agency in one's life. Consumers want to feel empowered to make decisions that positively impact their health and well-being, rather than simply consuming out of habit or social pressure.

• The Quest for Connection and Belonging: Despite the digital influence, the fundamental motivation for going out remains social connection. Consumers seek experiences that foster belonging and create shared memories. The "Elevated Elixir" plays a role in enhancing these social rituals, making gatherings more special and memorable.

• Aspiration for a Sophisticated Lifestyle: For many, the choice of premium spirits and curated experiences is tied to an aspiration for a more sophisticated, discerning, and elevated lifestyle. It's about indulging in refined tastes and participating in a culture that reflects a higher standard of living and appreciation for quality.

• Environmental and Social Responsibility: Beyond individual health, there's a growing awareness of broader environmental and social impacts. Consumers are increasingly motivated to support brands that demonstrate a commitment to sustainability, ethical sourcing, and community well-being, reflecting a desire to contribute positively to the world through their consumption choices.

Descriptions of consumers: The Discerning Experience Seeker

The consumers referred to in the article are primarily the modern US on-premise drinker, characterized by a blend of evolving tastes, digital savvy, and a strong desire for quality experiences over sheer volume. They are not a monolithic group but are influenced significantly by emerging younger demographics.

Consumer Summary: The Conscious Connoisseur & Social Curator

These consumers are digitally adept, highly social, and increasingly discerning about their out-of-home drinking experiences. They view their choices as reflections of their personal brand and a means to create engaging social content. They are less driven by heavy consumption and more by the quality, uniqueness, and story behind their drinks.

• Digitally Influenced and Visually Driven: These consumers are heavy users of social media, often looking to platforms like Instagram and TikTok for inspiration on where to go and what to drink. The "Instagram-ability" of a cocktail or venue significantly impacts their choices, as they seek content-ready experiences to share with their networks.

• Explorers of Flavor and Category: They possess an adventurous palate, actively seeking out new and diverse flavors, categories, and brands. They are not loyal to a single type of alcohol but enjoy experimenting with different spirits and cocktail styles, embracing complex and nuanced tastes beyond traditional preferences.

• Quality-Centric, Value-Conscious: While willing to pay more for premium products, their perception of "value" is tied to quality, craftsmanship, and the overall experience rather than just price. They prefer "less but better," opting for a few high-quality drinks over a larger quantity of standard ones, even in the face of economic uncertainty.

• Mindful and Health-Aware: There's a growing inclination towards moderation and mindful drinking. They are conscious of health implications and seek alternatives like low- and no-alcohol options, or simply choose to reduce their overall consumption. This doesn't mean abstaining from social occasions, but rather making more deliberate choices.

• Socially Engaged and Experience-Oriented: Bars and restaurants are still the "beating heart of social life" for them. They seek out venues that offer unique experiences, be it through ambience, specific events, or exceptional service. They value the social aspect of drinking out and how it contributes to memorable moments.

• Influenced by Experts and Peers: They are receptive to recommendations, especially from knowledgeable bartenders, whom they see as trusted sources. Peer influence, particularly through social media sharing, also plays a significant role in their discovery process.

Detailed summary (based on experience and article)

• Who are them: Primarily urban and suburban dwellers, socially active individuals who prioritize experiences and quality in their leisure time. They are often early adopters of trends and highly engaged with digital platforms.

• What kind of products they like: Premium spirits (especially vodka, whiskey, tequila), innovative and visually appealing cocktails, flavor-forward serves, and a growing array of high-quality low- and no-alcohol alternatives. They appreciate products with clear provenance and a compelling brand story. They are less interested in "cheap" or generic options.

• What is their age?: While the trend impacts all legal drinking age cohorts, the driving force and most pronounced behaviors are seen in Gen Z (typically 21-26 in 2025), and to a significant extent, younger Millennials (late 20s to mid-30s). Older consumers may adopt some aspects of premiumization but show less adventurousness in categories.

• What is their gender?: The article notes tequila over-indexing with Hispanic drinkers, and hints at cocktail gateways for women in traditionally male-skewed categories like whiskey. Generally, all genders are participating in this trend, with a particular focus on mixed serves appealing broadly, and conscious consumption resonating with both men and women focused on wellness.

• What is their income?: They are likely to have discretionary income that allows them to pay more for higher-quality drinks. While some may be cost-conscious, their "less but better" mantra indicates a willingness to allocate a larger portion of their budget per drink, even if overall volume consumed is lower. They prioritize value and experience over mere affordability.

• What is their lifestyle?: Their lifestyle is characterized by social engagement, active exploration (both physically in venues and digitally), a strong emphasis on personal well-being, and a desire to be perceived as discerning and sophisticated. They embrace experiences, enjoy sharing their lives on social media, and are often trend-aware.

• What are their shopping preferences in the category article is referring to?: They prefer to discover new products in on-premise settings (bars, restaurants, "eatertainment" venues) where they can experience the drink crafted by experts. They are influenced by bartender recommendations and visually appealing presentations. They will then seek out these discovered brands in off-premise retail.

• Are they low, occasional or frequent category shoppers?: They are frequent on-premise visitors (77% of spirit drinkers eat out weekly, 69% have a weekly on-premise drinking occasion). However, their consumption volume per occasion might be lower due to the "less but better" approach, making them frequent occasional drinkers rather than high-volume consumers in a single sitting.

• What are their general shopping preferences-how they shop products, shopping motivations): They shop by seeking out experiences, authenticity, and quality. They are heavily influenced by social proof (friends' posts, peer recommendations) and expert advocacy (bartenders). They conduct online research (price comparison, product discovery) and value transparency in product information. Their motivations include self-expression, discovery, health consciousness, and a desire to align with brands that reflect their values (e.g., sustainability).

Conclusions: The Future is Curated, Conscious, and Connected

The US on-premise spirits market is at an inflection point, driven by a consumer base that is more discerning, digitally savvy, and values quality experiences over sheer volume. The enduring appeal of spirits, particularly through innovative cocktail culture, is reinforced by a generation (Gen Z) that seeks exploration and authenticity in their consumption. Success hinges on a brand's ability to not only deliver premium products but also to weave compelling narratives around provenance and sustainability, while empowering the on-premise staff as key influencers. The shift towards "less but better" and the emphasis on "Instagram-ability" underscore a deeper desire for personal expression and social connection in every drinking occasion. The industry must evolve from simply selling drinks to curating memorable, values-aligned experiences that resonate with the modern, conscious consumer.

Implications for brands: Innovate, Authenticate, Empower

• Prioritize Premiumization and Quality: Brands must invest heavily in developing and marketing super-premium and ultra-luxury spirit tiers, focusing on exceptional quality, unique ingredients, and sophisticated flavor profiles. The "less but better" mantra means every sip counts.

• Embrace Flavor Forward Innovation: Continuously innovate with diverse and complex flavor profiles, moving beyond traditional sweet options. Explore botanicals, savory notes, and unique ingredients that appeal to adventurous palates and stand out in the crowded cocktail space.

• Invest in "Instagram-ability" and Visual Storytelling: Develop products and serves that are inherently photogenic and shareable. Marketing efforts should focus on visual appeal, encouraging user-generated content, and creating aspirational imagery that resonates with digitally-native consumers.

• Empower Bartenders as Brand Advocates: Shift marketing spend towards comprehensive bartender education programs, offering deep product knowledge, storytelling assets, and incentives. Bartenders are crucial influencers; equip them to recommend and advocate for your brand authentically.

• Champion Transparency and Provenance: Clearly communicate the origin of ingredients, distillation processes, and sustainable practices. Authenticity and transparency build trust, which is a significant differentiator for today's values-driven consumer.

Implication for society: A More Mindful and Diverse Drinking Culture

• Increased Mindful Consumption: Society will likely see a continued trend towards more moderate and intentional alcohol consumption, potentially leading to improved public health outcomes related to excessive drinking. The normalization of low- and no-alcohol options contributes to a culture where social engagement doesn't necessarily equate to high alcohol intake.

• Greater Inclusivity in Social Settings: The diversification of spirit categories and the rise of sophisticated non-alcoholic alternatives foster more inclusive social environments. Individuals with different preferences (e.g., those moderating, those abstaining, different cultural backgrounds) can more easily participate in social drinking occasions without feeling excluded.

• Elevated Culinary and Sensory Appreciation: The focus on premiumization and complex flavors encourages a more refined appreciation for beverages as part of a broader culinary experience. This can lead to greater innovation across the food and beverage industry, pushing boundaries in taste and presentation.

• Heightened Ethical and Environmental Consciousness: The consumer demand for transparency and sustainability in spirits reinforces broader societal movements towards corporate responsibility. This pressure on brands to adopt ethical sourcing and eco-friendly practices can contribute to positive environmental and social impacts across the supply chain.

• Shifting Social Rituals: Traditional drinking rituals may evolve to incorporate more diverse options and practices, such as "zebra striping" (alternating alcoholic and non-alcoholic drinks). This reflects a societal adaptation to modern values around well-being and personal choice.

Implications for consumers: Empowered Choices and Enriched Experiences

• Broader and More Diverse Choices: Consumers will benefit from an unparalleled expansion of high-quality, innovative, and ethically produced beverage options, including a sophisticated range of low- and no-alcohol alternatives. This provides greater freedom to tailor their drinking experiences to personal preferences and health goals.

• Enhanced Sensory Experiences: The focus on premiumization and complex flavor profiles means consumers can expect richer, more nuanced, and exciting taste experiences from their drinks, elevating the sensory pleasure of their on-premise visits.

• Greater Transparency and Trust: Consumers will have more access to detailed information about product ingredients, sourcing, and brand values. This empowers them to make highly informed decisions that align with their ethical and environmental concerns, fostering greater trust in the brands they choose.

• Personalized Recommendations and Engagement: The growing influence of bartenders and the potential for data-driven insights will lead to more personalized recommendations, making the process of choosing a drink less overwhelming and more tailored to individual tastes.

• Improved Well-being and Social Connection: The emphasis on mindful drinking and high-quality experiences can contribute to improved personal well-being by reducing the negative impacts of excessive alcohol. Simultaneously, the focus on experience enhances social connection, making out-of-home occasions more meaningful and enjoyable.

Implication for Future: A Sustainable and Curated Beverage Landscape

• Dominance of Hybrid Consumption Models: The future will see a seamless integration of alcoholic and non-alcoholic options on menus, with consumers frequently alternating between them. This "hybrid consumption" will become the norm, driven by health consciousness and a desire for choice in social settings.

• Deepening of "Experience Economy": The on-premise channel will continue to evolve as a key player in the experience economy. Venues will increasingly differentiate themselves through unique concepts, immersive environments, and highly curated offerings that go far beyond just serving drinks, becoming destinations for entertainment and engagement.

• Hyper-Specialization in Spirit Categories: We will see continued innovation and specialization within spirit categories, with micro-trends emerging around specific botanicals, obscure distillation methods, or niche flavor profiles, catering to highly discerning palates seeking novelty.

• Traceability and Ethical Supply Chains as Standard: Full traceability from farm to glass, along with verifiable ethical and sustainable practices, will become an industry standard rather than a niche differentiator. Brands failing to meet these expectations will face significant consumer backlash.

• AI-Powered Personalization at Scale: Artificial intelligence will increasingly inform product development, marketing, and on-premise service. From predicting flavor trends to personalizing recommendations based on individual preferences, AI will enable a new level of tailored experiences and efficient market response.

Consumer Trend: The Discerning Drinker's Ascent

The Discerning Drinker's Ascent: This consumer trend describes the evolving behavior of individuals who are increasingly selective about their alcohol consumption, prioritizing quality, unique experiences, and values-alignment over quantity or mere intoxication. They are proactive in seeking information, exploring new flavors, and integrating their purchasing decisions with their broader lifestyle, which often includes a focus on health, wellness, and social consciousness. This trend is characterized by a "less but better" philosophy, a desire for authenticity, and a strong influence from digital and social media platforms.

Consumer Sub Trend: The Social Media-Driven Mixology Explorer

The Social Media-Driven Mixology Explorer: This sub-trend highlights a segment of discerning drinkers, predominantly Gen Z, who are heavily influenced by visual content on social media platforms like Instagram and TikTok. Their motivation for choosing drinks extends to their aesthetic appeal and "shareability," turning each cocktail into a piece of content. They actively seek out innovative, visually stunning, and flavor-forward mixed serves, often inspired by what they see their peers or influencers consuming online, and they are quick to experiment with new cocktail styles.

Big Social Trend: The Experience Economy Intensifies

The Experience Economy Intensifies: This pervasive big social trend reflects a societal shift where consumers increasingly value experiences over material possessions. In the context of on-premise spirits, it means people are willing to invest more in unique outings, memorable social occasions, and curated environments that offer sensory richness and personal engagement, rather than just the physical product itself. The act of drinking out becomes part of a broader, more significant leisure and entertainment experience.

Worldwide Social Trend: Global Wellness Renaissance

Global Wellness Renaissance: This worldwide social trend signifies a broad societal awakening to holistic well-being, encompassing physical, mental, and emotional health. This translates into increased mindfulness around consumption choices, a growing demand for healthier alternatives (including low/no-alcohol options), and a general shift towards lifestyles that prioritize self-care and sustainable practices, impacting consumer decisions across all categories, including beverages.

Social Drive: Authenticity and Transparency Imperative

Authenticity and Transparency Imperative: This social drive describes the fundamental consumer demand for honesty, integrity, and openness from brands and institutions. In the spirits industry, it means consumers are actively scrutinizing ingredient lists, questioning marketing claims, and seeking verifiable information about sourcing, production methods, and ethical practices. Brands that genuinely embrace transparency and demonstrate authenticity in their operations and communication will gain significant trust and loyalty.

Learnings for brands to use in 2025: Strategic Adaptation for a Modern Palate

• Invest in Flavor Innovation Beyond Sweetness: Learn that consumers are seeking more complex and diverse flavor profiles. Brands should focus on developing spirits and cocktail ingredients that offer bitter, savory, herbaceous, and unique botanical notes, moving away from overly sweet formulations to cater to an evolving, sophisticated palate.

• Prioritize Visuals for On-Premise Success: Understand that "Instagram-ability" is a critical factor for younger consumers. Brands must design products and marketing collateral that showcase visually stunning serves and encourage social sharing, making the drink an attractive piece of content for digital platforms.

• Empower Bartenders as Key Influencers: Acknowledge the crucial role of bartenders in guiding consumer choices in premium venues. Brands should invest in comprehensive training programs, product education, and support for bartenders, turning them into knowledgeable brand advocates who can articulate provenance and experiential value.

• Develop Credible Premiumization Narratives: Learn that simply raising prices isn't enough; premiumization must be justified. Brands need to develop compelling stories around craftsmanship, unique ingredients, limited editions, and the overall elevated experience to credibly merchandise their higher-priced offerings.

• Tailor Portfolios for Diverse Demographics: Recognize that a "one-size-fits-all" approach no longer works. Brands should segment their portfolios and marketing efforts to cater to specific demographics, particularly multicultural and Gen Z audiences, who have rapidly expanding repertoires and distinct preferences (e.g., tequila's appeal to under 35s).

Strategic Recommendations for brands to follow in 2025: Cultivating Connection and Curating Quality

• Develop a Robust Low/No-Alcohol Premium Portfolio: Strategically invest in R&D for high-quality, flavor-forward low- and no-alcohol spirit alternatives that offer a "no compromise" experience. This directly addresses the mindful drinking trend and expands market reach to health-conscious consumers and occasions.

• Implement "Source-to-Serve" Transparency Campaigns: Launch comprehensive campaigns that highlight the full journey of your spirits, from the origin of ingredients and sustainable farming practices to the distillation process and the final serve. Utilize QR codes on bottles or menus to provide instant access to this rich narrative, building consumer trust and justifying premium pricing.

• Create Experiential Marketing Activations in On-Premise: Move beyond traditional promotions by designing immersive brand experiences within bars and "eatertainment" venues. This could include pop-up cocktail labs, themed tasting events, or interactive masterclasses that allow consumers to engage deeply with the brand story and product versatility.

• Forge Strategic Partnerships with Influential Bartenders: Establish formal brand ambassadorship programs with leading mixologists and bar managers. Provide them with exclusive product insights, early access to new releases, and creative freedom to develop signature cocktails, leveraging their credibility and reach to influence consumer preferences.

• Innovate in Packaging for Sustainability and Aesthetics: Redesign packaging to be both environmentally responsible (e.g., lightweight glass, recycled content, refillable options) and visually striking. Packaging should reinforce the premium nature of the product and its "Instagram-ability," aligning with consumer values for sustainability and social sharing.

The overarching concept is that the US on-premise spirits market is experiencing a profound shift towards Experiential Authenticity, where consumers are driven by a desire for high-quality, story-rich, and visually compelling drinking experiences rather than just alcohol content. To benefit from this trend in 2025, brands and companies should pivot from volume-centric strategies to value and experience-driven models, achieving this by investing in premium product innovation, radical transparency in sourcing, empowering bartender advocacy, and crafting immersive, shareable on-premise moments that resonate with the modern, discerning consumer.

Final Note: Strategic Pillars for the Modern Beverage Landscape

• Core Trend: The Elevated Elixir. This trend signifies a consumer preference for premium, sophisticated, and experience-driven drinks over simple alcoholic content, reflecting a desire for quality and self-expression.

• Core Strategy: Experience-Led Premiumization. Brands must strategically focus on elevating the entire consumer journey, ensuring that every touchpoint, from product quality to on-premise service, justifies a premium price point through unique and memorable experiences.

• Core Industry Trend: On-Premise as Brand Incubator. The on-premise channel is increasingly serving as a critical testing ground and discovery hub for new products and brands, with bartenders acting as key influencers who introduce consumers to novel and premium offerings.

• Core Consumer Motivation: Mindful Indulgence. Consumers are motivated by a desire for pleasurable, high-quality experiences that align with their broader wellness goals, seeking to indulge in moderation rather than excessive consumption, valuing the craftsmanship and authenticity behind their choices.

Final Conclusion: The Conscious Connoisseur Era – A Call for Purposeful Pleasure

The US on-premise spirits market is undergoing a fundamental recalibration, moving decisively into an era defined by the "Conscious Connoisseur." This new consumer archetype, characterized by a discerning palate, a digital-first mindset, and an unwavering commitment to personal and planetary well-being, is demanding more than just a drink; they seek a purposeful pleasure. Success in this evolving landscape is no longer about mass appeal or fleeting trends, but about cultivating deep, authentic connections built on transparency, quality, and shared values. Brands that proactively embrace innovation in flavor and format, empower their frontline advocates (bartenders), and consistently deliver immersive, visually compelling experiences—all while championing genuine sustainability—will not only capture market share but also foster enduring loyalty. The future of on-premise spirits is not just about what is poured, but the profound story, experience, and values embodied in every sip, transforming drinking into an intentional act of elevated enjoyment.

Core Trend Detailed: The Elevated Elixir – Beyond Basic Buzz

The core trend shaping the US on-premise spirits market in 2025 is a profound evolution of consumer demand towards the "Elevated Elixir". This signifies a shift beyond simply seeking an alcoholic beverage for intoxication, moving instead towards a desire for a holistic and curated drinking experience that prioritizes quality, complexity, and personal expression. Consumers are increasingly discerning, opting for fewer but better drinks, valuing the craftsmanship behind their chosen spirit, and seeking out unique flavors and visually appealing serves that enhance their social experiences. This trend is deeply intertwined with a growing emphasis on exploration and personalization, particularly among younger demographics like Gen Z, who exhibit a broader repertoire of brands and categories than any other cohort. It also reflects a conscious decision to moderate consumption without sacrificing the social ritual or the enjoyment of high-quality ingredients. Ultimately, the "Elevated Elixir" trend means that bars and restaurants are no longer just places to drink; they are curated spaces where consumers engage with sophisticated flavors, discover new brands, and participate in a more intentional and visually appealing drinking culture.

Key Characteristics of the Core trend: Premiumization, Palate Expansion, and Experiential Engagement

• "Less but Better" Spending Mantra: Consumers, especially spirits drinkers, are actively choosing to buy fewer but higher-quality drinks. Two-thirds (67%) of spirits drinkers are willing to pay more for a superior product, preferring two premium drinks over four standard ones. This underscores a shift from quantity to quality, driving the growth of super-premium and ultra-luxury spirit tiers.

• Diversity and Discovery in Repertoire: Drinkers, particularly Gen Z, are displaying a highly adventurous approach to their beverage choices. Gen Z consumers, on average, explore eleven brands and five drink categories when out, frequently trialing new cocktail styles. This hunger for discovery fuels the expansion of spirits into broader demographics and creates opportunities for a wider range of spirits beyond traditional preferences.

• Cocktail Culture as a Volume and Visual Driver: Cocktails continue to be a primary driver of spirit sales in the on-premise, accounting for one in three consumer orders. Beyond taste, the "Instagram-ability" of cocktails plays a significant role, particularly for visually-focused demographics like Gen Z. This emphasizes the importance of presentation and unique serves in attracting and engaging consumers.

• High Expectations for High-Energy Occasions: While overall visitation to on-premise venues remains robust, consumers have elevated expectations for premium bars and "eatertainment" venues, where spending per guest is higher despite lower frequency. In these environments, the overall experience, including bartender advocacy and visually appealing serves, is crucial for capturing loyalty and spend.

• Spirits as the Core of Out-of-Home Drinking: More than half (52%) of US on-premise visitors now choose spirits, reinforcing the category's central role in venue sales. Core spirit categories like vodka, whiskey, and tequila continue to grow year-on-year, showcasing a sustained and increasing preference for spirits over other alcoholic beverages in social settings.

Market and Cultural Signals Supporting the Trend: Shifts in Taste and Social Habits

• Spirits Dominance in On-Premise: Over 52% of US on-premise visitors now choose spirits, indicating a strong and growing preference for this category as the go-to alcoholic beverage when drinking out.

• Growth of Core Spirit Categories: Vodka, whiskey, and tequila continue their year-on-year growth in popularity, showcasing sustained consumer interest across diverse spirit types.

• Gen Z's Expansive Repertoire: Gen Z consumers, on average, consume eleven brands and five drink categories when out, more than any other demographic, demonstrating a clear cultural shift towards broader exploration and less brand loyalty.

• Tequila's Diversified Appeal: Tequila is notably over-indexing with Black/African-American and Hispanic drinkers, as well as with under 35s, highlighting its success in expanding the demographic reach of spirits and its cultural resonance with diverse groups.

• Margarita's Enduring Popularity (with a Gen Z caveat): The Margarita remains the top cocktail choice for over half (54%) of all cocktail drinkers, yet Gen Z shows a below-average affinity for it, signaling an opportunity for alternative flavor-forward and visually appealing serves for this demographic.

• Consumer Willingness to Pay for Quality: Two-thirds (67%) of spirits drinkers express a willingness to pay more for higher-quality drinks, even amidst economic uncertainty, reinforcing the "less but better" spending mantra.

• High Visitation to On-Premise Venues: Three-quarters (77%) of spirit drinkers eat out at least weekly, and 69% of all consumers have at least one on-premise drinking occasion weekly, demonstrating the continued importance of bars and restaurants as social hubs.

• Bartender Influence in Premium Venues: In premium bars and "eatertainment" venues, guests inclined to trade up are nearly twice as likely to seek staff recommendations before ordering, underscoring the critical role of bartenders as influencers and educators.

How the Trend Is Changing Consumer Behavior: Discerning Choices and Digital Influence

• Prioritizing Quality Over Quantity: Consumers are increasingly opting to purchase fewer drinks but selecting higher-quality, premium options. This behavioral shift reflects a desire for a more refined and satisfying experience, where the emphasis is on savoring a superior product rather than maximizing volume.

• Embracing Exploration and Diversity: Drinkers, especially younger cohorts, are actively seeking out new brands and categories, demonstrating a strong appetite for discovery. This behavior contrasts with previous generations' habits of sticking to a narrower range of familiar choices, leading to more varied and adventurous orders at the bar.

• Visual Appeal as a Purchase Driver: The "Instagram-ability" of cocktails is influencing consumer choices, particularly among Gen Z. This means that the aesthetic presentation of a drink, its unique garnishes, and its overall photogenic quality are increasingly important factors in a consumer's decision to order and share it, driving a demand for visually stunning serves.

• Seeking Expert Recommendations: In higher-end venues, consumers are more inclined to ask bartenders for recommendations before ordering. This behavior highlights a desire for guidance and education from trusted sources, acknowledging the bartender's expertise and influence in navigating a broad and expanding spirits landscape.

• Value-Driven Decision Making: Even with a willingness to spend more on premium drinks, consumers remain value-conscious. They are seeking justified higher price points through clearly communicated provenance cues and experiential value, demonstrating that "premium" is defined not just by price, but by perceived quality and the overall elevated experience.

Implications Across the Ecosystem: A Strategic Imperative for Adaptation

• For Brands and CPGs: Brands must lean into cocktail gateways, using approachable mixed serves to introduce consumers, especially women and younger adults, to categories like whiskey that have traditionally skewed male. They need to credibly merchandise their premium offerings by highlighting provenance cues and experiential value to justify higher price points without alienating cost-conscious guests. Furthermore, brands must segment their marketing by diversity, tailoring portfolios (e.g., tequila, flavor-forward options) to multicultural and Gen Z audiences whose repertoires are expanding fastest.

• For Retailers: Retailers, specifically on-premise operators, need to empower their bartenders as influencers by investing in comprehensive education and providing them with content-ready serves that offer a compelling story to share with guests. They should also consider optimizing their menus to highlight premium options and visually appealing cocktails that cater to the "Instagram-ability" trend. Creating an environment that encourages exploration and discovery will be key.

• For Consumers: Consumers will experience a richer, more personalized, and more engaging drinking out experience. They will have access to a broader and more diverse range of high-quality spirits and cocktails, allowing for greater exploration and tailored choices. The increased focus on bartender expertise means consumers can expect more informed recommendations and a deeper understanding of their drinks, leading to a more satisfying and intentional social occasion.

Strategic Forecast: The Curated Consumption Revolution

The strategic forecast for the US on-premise spirits market anticipates a Curated Consumption Revolution, where the emphasis shifts from broad appeal to highly tailored experiences. This will involve:

• Hyper-Personalized Menu Engineering: Bars and restaurants will leverage data to create dynamic menus that adapt to local demographics, trending flavors, and even individual guest preferences, offering bespoke recommendations.

• Experiential Brand Immersion: On-premise venues will become immersive brand showcases, offering unique activations, tasting flights, and educational experiences that deepen consumer connection beyond just the drink itself.

• Sustainability as a Premium Differentiator: Brands that can credibly demonstrate a full-circle commitment to sustainability—from ethically sourced ingredients to zero-waste practices—will gain significant market share and command premium pricing.

• Bartender as Brand Ambassador 2.0: The role of the bartender will evolve further into that of a sophisticated brand ambassador, highly knowledgeable about product provenance, cocktail artistry, and capable of creating compelling, shareable narratives for guests.

• AI-Driven Trend Spotting and Response: Brands and operators will increasingly utilize AI and predictive analytics to identify emerging consumer preferences and cultural shifts, enabling faster and more effective adaptation of product offerings and marketing strategies.

Areas of innovation: Crafting Tomorrow's Cheers with Purpose

• Flavor-Forward Spirit Development: Innovation should focus on creating spirits with naturally complex and adventurous flavor profiles that appeal to diverse and exploring palates, moving beyond traditional categories. This includes unique botanical infusions, savory distillates, and spirits designed to shine in flavor-forward cocktails, addressing the Gen Z desire for alternative, visually-driven serves.

• Premium No/Low-Alcohol Mixology: Develop sophisticated non-alcoholic spirits and cocktail components that replicate the body, complexity, and mouthfeel of their alcoholic counterparts, allowing for a "no compromise" experience in mindful drinking occasions. This means investing in advanced extraction techniques and flavor layering to create compelling zero-proof options.

• "Instagram-Ready" Cocktail Engineering: Focus on designing cocktails with inherent visual appeal and unique garnishes that are shareable and photogenic, catering to the digital influence on consumer choices. This isn't just about aesthetics, but about creating drinks that tell a story and invite social media engagement.

• Bartender Education & Empowerment Programs: Create comprehensive training programs for bartenders that go beyond mixology, equipping them with deep knowledge of spirit provenance, brand stories, and the ability to articulate value and create memorable, shareable guest experiences. This empowers them as key influencers in the premiumization trend.

• Provenance and Sustainability Transparency Tools: Develop digital platforms or QR code integrations that allow consumers to instantly access detailed information about a spirit's ingredients, sourcing, production process, and environmental footprint. This provides the radical transparency consumers demand, justifying premium price points and building profound trust.

Final Thought: The Modern Drinker's Journey – Experience, Inclusivity, and Enduring Value

The US on-premise spirits landscape in 2025 is undergoing a vibrant transformation, moving beyond a simple transactional exchange to a deep, experiential engagement. The modern drinker is on a journey of discovery, seeking not just a drink, but a curated experience that balances exceptional taste with personal values, social connection, and a sense of belonging. Success for brands and venues now hinges on their ability to craft high-quality, diverse spirit offerings that tell compelling stories, justify premium value through provenance and experience, and empower the bartender as a crucial advocate. This future is about innovating with purpose, understanding that capturing consumer wallets, and ultimately their loyalty, means authentically embracing a blend of experience, inclusivity, and enduring value in every pour. The industry is recalibrating, preparing for a future where every sip is a conscious, satisfying, and memorable choice.

Source: https://cgastrategy.com/five-consumer-trends-shaping-2025-us-on-premise-spirit-sales/