Insight of the Day: Five consumer trends shifting the beverage alcohol industry in 2025
- InsightTrendsWorld
- Feb 22
- 11 min read
Why is this topic trending?
Future of Beverage Alcohol Industry: The article discusses key trends expected to shape the beverage alcohol industry in 2025, which is highly relevant for industry professionals, investors, and consumers interested in market dynamics.
Economic Uncertainty and Growth Opportunities: It addresses the context of persistent economic uncertainty and identifies emerging growth opportunities within the industry, providing valuable insights for strategic planning.
Shifting Consumer Behaviors: The article highlights significant shifts in consumer behavior, including moderation, casual consumption, and channel preferences, which are crucial for understanding evolving market demands.
Emerging Markets as Growth Engines: It points to developing economies as major growth drivers, contrasting with subdued mature markets, signaling a geographical shift in industry focus.
Data-Driven Insights from IWSR: The research is based on data from IWSR, a reputable source for beverage alcohol market analysis, lending credibility and authority to the identified trends.
Overview
The article from IWSR outlines five key consumer trends expected to shape the beverage alcohol industry in 2025 amidst persistent economic uncertainty. Despite challenges like inflation and geopolitical tensions, the industry is presented as "opportunity-rich." The five key trends identified are: new moderation strategies, a growth axis shift towards developing markets, the rise of casual consumption, slowing premiumization (except for beer), and channel shifts impacting purchasing decisions. The article emphasizes the need for a nuanced approach to navigating these trends, focusing on market, category, and price-tier specific strategies to capitalize on growth opportunities in this evolving landscape.
Detailed Findings
Source of Trends: IWSR (International Wine and Spirit Research).
Context: Persistent economic uncertainty in 2025, following inflation and geopolitical tensions in 2024.
Overall Industry Outlook: "Subdued but opportunity-rich" trading environment.
Five Key Trends:
New Moderation Strategies:
Mainstream Moderation: Moderation is now a mainstream cultural phenomenon across all demographics and regions, not just younger consumers.
Lighter Consumption: "Light drinkers" (low frequency/intensity) are now the largest consumer segment.
Temporary Abstinence: Gaining momentum, especially among younger affluent consumers (e.g., 72% in India, over 50% in South Africa, Mexico, Brazil).
Single-Category Occasions: Consumers limit themselves to one beverage type per occasion, reducing overall consumption (average categories per occasion down from 2.4 in 2023 to 1.8 in 2024).
No/Low Alcohol Growth: No/low alcohol volumes forecast to grow at +4% CAGR (2024-2028), with no-alcohol leading at +7% CAGR, expected to add US$4bn+ by 2028.
Growth Axis Shift Intensifies:
Developing Markets as Growth Engines: Developing beverage alcohol markets will drive value growth over the next 5 years, replacing mature markets.
Key Growth Markets: India, China, US (notable exception in mature markets), Brazil, Mexico, South Africa, Vietnam, Nigeria.
Drivers in Developing Markets: Younger populations, rising disposable incomes, expanding middle classes, preference for premium/innovative products, willingness to explore new occasions/categories.
Examples: Strong growth in India (premium spirits, RTDs, Indian single malts), South-East Asia (premium beer/spirits), Africa (South Africa beer/cider/RTDs), Latin America (Mexico/Brazil RTDs/premium beer).
India Example: Population growth and less regulation in key states are driving significant value growth.
Rise of Casual Consumption:
Shift to Casual Settings: Shift from formal to casual, spontaneous drinking occasions.
Categories Benefiting: Rosé wine, Prosecco, bitters, spirit aperitifs.
Drivers: Changing social norms, economic constraints, preference for relaxed/versatile beverages.
US Example: Prosecco/RTDs popular at brunches/barbecues, replacing champagne.
Italy Example: Aperitivo culture fuels Prosecco, bitters, aperitifs growth.
China Example: Affordable options and casual drinking gain momentum due to economic struggles and on-premise changes.
RTDs Thrive: RTDs continue to gain TBA share, especially in established markets (Japan, US, Australia, Canada), with all top 10 markets forecast to grow (led by Brazil, Australia, Germany, US, Canada).
Premiumisation Slowing, but Beer Stands Out:
Premium-Plus Beer/Cider Growth: Volumes up 2% in H1 2024, contrasting with declines for premium-plus spirits/wine (-3%).
Affordability of Premium Beer: Price competitiveness of premium beer/cider is a boon in current economy. Consumers seek "premiumisation" at a lower cost than premium spirits/wine.
Downtrading: Lower-income consumers downtrade in volume and value.
Higher-Income Consumers: Reduce volume but less likely to downtrade in value.
Status Spirits Still Growing: Luxury spirits (US$100+ SRP) continue to grow share (reaching 5% of global spirits value) as affluent consumers are more insulated.
Channel Shifts Impacting Purchasing Decisions:
On-Premise Revival: On-premise consumption rising in some markets (China, Germany, Italy, Mexico, UK, US), showing signs of recovery after disruptions. Millennials in US driving this trend, benefiting scotch whisky, liqueurs, sparkling wine.
Digital Influence on Offline Sales: Digital platforms play a pivotal role in offline purchases.
Online Research Before Purchase: 63% of online alcohol buyers research extensively before purchase; this trend is growing among offline shoppers.
Top Research Drivers: Price comparison and product discovery via brand websites, reviews, delivery apps, influencing choices across all channels.
Key Takeaway
The beverage alcohol industry in 2025 is characterized by a "subdued but opportunity-rich" environment shaped by five key trends. These trends highlight a shift towards moderation, growth in developing markets, casual consumption occasions, a nuanced premiumization landscape (with beer standing out), and the increasing influence of digital channels on purchasing decisions. Success in this evolving market requires a nuanced, market-specific approach to strategy, focusing on understanding and adapting to these significant shifts in consumer behavior and market dynamics.
Main Trend
Nuanced and Adaptive Alcohol Consumption
Description of the Trend (Name it): Nuanced and Adaptive Alcohol Consumption
This overarching trend encapsulates the complex and evolving ways consumers are engaging with beverage alcohol in 2025. Nuanced and Adaptive Alcohol Consumption moves beyond simple categories of "drinking more" or "drinking less," highlighting a more sophisticated and context-dependent approach. Consumers are adapting their alcohol consumption based on various factors including economic pressures, health consciousness, social norms, occasion types, and access to information through digital channels. This trend signifies a shift towards more mindful and flexible drinking habits, requiring the industry to adopt equally nuanced and adaptive strategies to meet diverse and evolving consumer needs.
What is consumer motivation?
Consumer motivation for Nuanced and Adaptive Alcohol Consumption includes:
Health and Wellness Consciousness: Growing awareness of health impacts and a desire for moderation and healthier lifestyles.
Economic Prudence: Response to economic uncertainty and inflation by adjusting spending habits, including alcohol consumption and price sensitivity.
Evolving Social Norms: Shifting social attitudes towards alcohol, with increased acceptance of moderation and diverse drinking occasions.
Desire for Versatility and Convenience: Preference for beverages that fit various occasions and lifestyles, including casual settings and on-the-go consumption.
Information Seeking and Informed Choices: Proactive research and information gathering using digital platforms to make informed purchasing decisions.
Seeking Value and "Affordable Premiumization": Desire for quality and premium experiences but at a more accessible price point, especially in economically constrained times.
Exploration and Novelty: Willingness to explore new categories, flavors, and drinking occasions, particularly in emerging markets with younger populations.
What is driving trend?
Several factors are driving this trend:
Persistent Economic Uncertainty: Ongoing inflation, geopolitical tensions, and economic instability are influencing consumer spending and lifestyle choices.
Mainstreaming of Moderation: Moderation is becoming culturally normalized and widely adopted across demographics.
Growth of No/Low Alcohol Options: Increased availability and appeal of no/low alcohol beverages provide consumers with viable alternatives and facilitate moderation.
Digitalization and Information Access: Easy access to information through digital platforms empowers consumers to research products, compare prices, and make informed choices.
Globalization and Cultural Exchange: Exposure to diverse drinking cultures and trends through globalization and digital media is shaping consumer preferences and behaviors.
Demographic Shifts: Younger generations and expanding middle classes in developing economies are bringing new consumption patterns and preferences to the market.
On-Premise Channel Revival: Reopening and recovery of the on-premise channel are influencing consumption occasions and beverage choices.
What is motivation beyond the trend?
Beyond immediate consumption habits, deeper motivations include:
Seeking Balance and Control: Consumers are striving for balance in their lifestyles and a sense of control over their consumption habits, including alcohol intake.
Desire for Mindful Consumption: Growing emphasis on mindful consumption and making conscious choices that align with personal values and well-being.
Adapting to a Changing World: Consumers are adapting their behaviors and preferences to navigate and thrive in an increasingly complex and unpredictable world.
Description of consumers article is referring to
The article refers to global beverage alcohol consumers, with a focus on differentiating behaviors in mature vs. developing markets, specifically:
Mature Market Consumers (US, Europe):
Inflation-Pressured: Experiencing reduced purchasing power due to high inflation.
Health-Conscious and Moderating: Adopting moderation strategies, including lighter consumption, temporary abstinence, and single-category occasions.
Digitally Savvy: Using digital platforms extensively for research and price comparison.
Value-Oriented: Seeking value and affordability, potentially downtrading or seeking premium beer as a more affordable "premium" option.
Millennial On-Premise Revival (US): US Millennials showing increased propensity to visit on-premise venues as personal circumstances improve.
Developing Market Consumers (India, South Africa, SE Asia, Latin America):
Younger Demographics: Driven by younger populations and expanding middle classes.
Rising Disposable Incomes: Benefitting from economic growth and increased disposable incomes.
Premium and Innovation Seekers: Growing preference for premium and innovative beverage alcohol products.
Open to New Occasions and Categories: Willing to explore new drinking occasions and beverage categories, including RTDs and premium options.
Moderation Emerging (India, South Africa, Brazil, Mexico): Moderation trends, like temporary abstinence, also present in some developing markets, particularly among affluent urban consumers.
Conclusions
The article concludes that the beverage alcohol industry in 2025 is facing a "subdued but opportunity-rich" environment shaped by five key trends, all pointing towards Nuanced and Adaptive Alcohol Consumption. To succeed, brands need to adopt a nuanced, market-specific approach, understanding the diverse motivations and behaviors of consumers in both mature and developing markets, and adapting strategies to capitalize on emerging growth segments within this evolving landscape.
Implications for Brands
Embrace Moderation Trend: Develop and market no/low alcohol options and cater to consumers seeking moderation strategies.
Focus on Developing Markets: Prioritize growth strategies in developing economies with younger populations and rising incomes.
Cater to Casual Consumption: Develop and promote beverages suitable for casual and spontaneous occasions, particularly RTDs and versatile categories.
Offer Affordable Premiumization: Capitalize on the demand for "affordable premiumization," particularly in beer and cider, offering value-conscious premium options.
Leverage Digital Channels: Utilize digital platforms for marketing, product discovery, price comparison, and influencing both online and offline sales.
Nuanced Market Strategies: Adopt market-specific strategies, recognizing the differences between mature and developing markets and tailoring offerings accordingly.
Data-Driven Decision Making: Rely on data and market research to understand evolving consumer behaviors and inform strategic decisions.
Implication for Society
Shift Towards Healthier Drinking Norms: Society is witnessing a shift towards healthier drinking norms, with moderation becoming more mainstream and accepted.
Economic Impact of Alcohol in Developing Nations: Beverage alcohol industry is becoming a significant contributor to tax revenues and economic growth in developing economies.
Digital Influence on Consumption Habits: Digital platforms are increasingly shaping consumer choices and consumption patterns, including in the alcohol industry.
Implications for Consumers
Wider Range of Choices: Consumers have access to a wider range of beverage alcohol options, including no/low alcohol alternatives and diverse categories.
More Control Over Consumption: Consumers are empowered with more tools and social acceptance to moderate their alcohol intake.
Access to Information and Value: Digital platforms provide consumers with greater access to product information, price comparisons, and value-driven purchasing decisions.
Diverse Drinking Occasions: Consumers are embracing more diverse and casual drinking occasions, expanding beyond traditional formal settings.
Implication for Future
Continued Growth of No/Low Alcohol: The no/low alcohol category will continue to expand and reshape the beverage alcohol landscape.
Developing Markets Lead Growth: Developing economies will become increasingly important growth drivers for the industry.
Digital Dominance in Purchasing: Digital platforms will become even more central to consumer purchasing journeys and brand interactions in the alcohol sector.
Personalized and Contextual Consumption: Future consumption patterns may become even more personalized and context-dependent, with consumers tailoring their choices to specific occasions, moods, and individual needs.
Sustainability and Responsibility Focus: Sustainability and responsible consumption will become increasingly important considerations for both brands and consumers in the beverage alcohol industry.
Consumer Trend (Name, Detailed Description): 'Mindful & Flexible Drinking'
Detailed Description: This consumer trend describes the shift towards more mindful and flexible approaches to alcohol consumption. Consumers exhibiting this trend are no longer adhering to rigid drinking patterns but are actively making conscious decisions about when, what, and how much they drink based on various factors like health, occasion, and personal preferences. Mindful & Flexible Drinking encompasses moderation strategies, exploration of no/low alcohol options, and adapting consumption to fit diverse lifestyles and social contexts.
Consumer Sub Trend (Name, Detailed Description): 'Value-Driven Premiumization'
Detailed Description: This sub-trend highlights the consumer desire for premium experiences and products but with a strong emphasis on value and affordability, particularly in economically uncertain times. Consumers practicing Value-Driven Premiumization seek out products that offer a sense of "premium" quality or status without the high price tag, often leading them to explore categories like premium beer or affordable luxury options within spirits and wine.
Big Social Trend (Name, Detailed Description): 'The Mainstreaming of Moderation'
Detailed Description: This broader social trend reflects the widespread cultural shift towards moderation in alcohol consumption. The Mainstreaming of Moderation is characterized by the increasing social acceptance of reduced alcohol intake, the normalization of no/low alcohol choices, and a general societal move away from excessive drinking habits, driven by health consciousness and evolving social norms.
Worldwide Social Trend (Name, Detailed Description): 'Global Economic Rebalancing & Consumption Shift'
Detailed Description: This global trend describes the significant economic rebalancing occurring on a worldwide scale, with developing economies becoming increasingly important drivers of global consumption growth, while mature markets face slower growth or contraction. In the beverage alcohol industry, this translates to a shift in growth axis towards developing regions with younger populations and rising middle classes, impacting market strategies and investment priorities for global brands.
Social Drive (Name, Detailed Description): 'Desire for Health, Value & Adaptability in Lifestyle'
Detailed Description: The underlying social drive is the fundamental consumer desire for health, value, and adaptability in their overall lifestyle choices. Consumers are motivated to prioritize their health and well-being, seek value for their money in an uncertain economy, and adapt their consumption habits to fit increasingly flexible and dynamic lifestyles, influencing their choices across various sectors, including beverage alcohol.
Learnings for brands to use in 2025
Moderation is mainstream, cater to it: No/low alcohol is not niche; it's a significant growth area.
Developing markets are key growth engines: Focus strategic investments on high-potential developing economies.
Casual occasions drive volume: Develop products for relaxed, everyday consumption settings.
Value-conscious premium is appealing: Offer premium experiences at accessible price points.
Digital is essential for influence: Utilize digital platforms to reach and influence consumers.
Strategy Recommendations for brands to follow in 2025
Expand "No/Low Alcohol Portfolio": Invest in and expand no/low alcohol product lines across categories to capture the growing moderation trend.
Prioritize "Developing Market Expansion": Develop targeted market entry and growth strategies for key developing economies, tailoring products and marketing to local preferences.
Create "Casual Occasion Beverage Ranges": Design product ranges specifically for casual consumption occasions, emphasizing RTDs, versatile wines, and accessible spirits.
Offer "Value-Driven Premium" Options: Develop premium-quality products at competitive price points, particularly in beer and cider, to appeal to value-conscious consumers seeking premium experiences.
Implement "Digital-First Marketing & Sales Strategies": Shift marketing and sales investments towards digital platforms, focusing on online research influence, e-commerce, and direct-to-consumer engagement.
Final Sentence (Key concept) describing main trend from article (which is a summary of all trends specified)
IWSR's 2025 beverage alcohol trends highlight a shift towards Nuanced and Adaptive Alcohol Consumption, requiring brands to embrace moderation, target developing markets, cater to casual occasions, offer value-driven premium options, and leverage digital channels for success.
What brands & companies should do in 2025 to benefit from trend and how to do it.
Beverage alcohol brands in 2025 should capitalize on the Nuanced and Adaptive Alcohol Consumption trend by developing agile and data-driven strategies that prioritize no/low alcohol innovation, expansion in developing markets, products for casual occasions, value-driven premium offerings, and digital-first marketing to resonate with evolving consumer behaviors and achieve sustainable growth in a complex and opportunity-rich global market. They can do this by:
Establishing "Future Consumption Foresight Units": Create dedicated teams focused on continuous monitoring of evolving consumer consumption patterns, analyzing data on moderation trends, developing market dynamics, and digital influence to anticipate future shifts and inform agile strategy adjustments.
Developing "Localized & Region-Specific Product Strategies": Implement region-specific product development and marketing strategies, tailoring offerings to the unique preferences, cultural contexts, and economic conditions of key developing markets and distinct segments within mature markets.
Launching "Occasion-Based Beverage Bundles & Experiences": Create bundled product offerings and marketing campaigns centered around specific consumption occasions (e.g., casual gatherings, at-home occasions, outdoor activities), providing consumers with convenient and contextually relevant beverage solutions.
Investing in "Agile & Scalable No/Low Alcohol Production": Optimize production processes to enable agile and scalable manufacturing of no/low alcohol beverages, ensuring responsiveness to rapidly growing demand and efficient adaptation to evolving consumer preferences within the moderation trend.
Building "Direct-to-Consumer & Digital Engagement Platforms": Invest in building robust direct-to-consumer e-commerce platforms and enhanced digital engagement strategies, leveraging data analytics to personalize consumer experiences, optimize online marketing ROI, and build direct relationships with digitally-savvy consumers.
Final Note:
Core Trend: Nuanced and Adaptive Alcohol Consumption - Consumers are drinking in more mindful and flexible ways.
Core Strategy: Agility, Localization & Digital Focus - Be agile, localize offerings, and prioritize digital channels.
Core Industry Trend: Market Nuance & Strategic Adaptation - The industry needs nuanced strategies to adapt to complex market shifts.
Core Consumer Motivation: Desire for Health, Value & Adaptability in Lifestyle - Consumers seek healthy, valuable, and adaptable lifestyle choices, including alcohol consumption.
Final Conclusion
The Nuanced and Adaptive Alcohol Consumption trend, as detailed by IWSR's 2025 forecast, signifies a transformative period for the beverage alcohol industry. To thrive in this evolving landscape, brands must embrace agility, data-driven decision-making, and a consumer-centric approach that prioritizes innovation in no/low alcohol options, strategic expansion in developing markets, catering to diverse consumption occasions, offering value-driven premium choices, and leveraging the power of digital engagement to connect with and serve the increasingly nuanced and adaptable global alcohol consumer of 2025 and beyond.
コメント