Beverages: 8 Beverage Alcohol Trends in 2025
- InsightTrendsWorld
- Mar 17
- 9 min read
Why it is the topic trending:
The article provides a comprehensive overview of the key trends shaping the beverage alcohol industry in 2025, following significant shifts in consumer behavior after the COVID-19 pandemic. As the bourbon boom cools, the article highlights the rise of other categories like no- and low-alcohol beverages, cannabis-infused drinks, and tequila, while also examining the challenges and opportunities facing wine and beer. This analysis of current and future trends is crucial for industry stakeholders, consumers, and anyone interested in the evolving landscape of alcoholic beverages.
Overview:
The article outlines eight broad alcohol trends to watch in 2025, reflecting significant shifts in consumer preferences. These trends include the continued growth of no- and low-alcohol beverages, the rise of cannabis-infused drinks, a potential turnaround for beer sales, challenges in attracting younger consumers to wine, the sustained boom of ready-to-drink (RTD) cocktails, the threat of tariffs, the ongoing popularity of tequila with a shift towards craft producers, and the increasing momentum of mezcal and related agave spirits like raicilla.
Detailed findings:
No- and Low-Alcohol Beverages: Continue to gain traction, with 25% of Americans participating in Dry January. The segment is dominated by beer, followed by wine and spirits, with non-alcoholic spirits showing significant growth in dollar share. Even Hilton Hotels is offering alcohol-free cocktails.
Cannabis Beverages: The "better-for-you" beverage movement has boosted cannabis-infused drinks, seen as alcohol alternatives. The global market is projected for significant growth, with North America leading. These beverages are increasingly found in liquor stores and even on-premise locations like lounges and coffee shops.
Beer Shows Improvement: After a decline, beer sales showed a slight increase between 2023 and 2024, potentially attributed to healthier options like alcohol-free beers which are gaining shelf space. However, the industry still faces challenges in attracting younger consumers amidst price increases and saturation.
Attracting Younger Consumers to Wine: Wine is facing an uncertain future with millennials and Gen Z showing less interest, preferring spirits, no/low-ABV options, and RTDs. The high learning curve and the perception of it being their parents' drink are factors. Some brands and retailers are trying to appeal to younger consumers with new packaging, social gatherings, and focusing on high-acid, lighter-bodied, lower-ABV natural wines.
Ready-to-Drink Still Booming: Canned cocktails continue to grow, appealing to younger consumers for their convenience, affordability, and quality, especially spirits-based RTDs which are outperforming malt-based options. Tequila and bourbon-based RTDs are also gaining popularity.
The Threat of Tariffs: Proposed tariffs on goods from Mexico and Canada are a major concern for the beverage alcohol industry, potentially leading to retaliatory tariffs and negatively impacting the tequila and Canadian whisky markets, as well as U.S. consumers and the hospitality industry.
Tequila Shines: Despite some predictions of cooling, demand for tequila is expected to continue, with a shift towards smaller, lesser-known craft producers and additive-free tequilas gaining ground. Mezcal and other agave spirits like cristalino and rosé tequila are also growing in popularity.
Mezcal Momentum: As tequila's popularity continues, it's paving the way for artisanal mezcal to grow. While some perceive it as smoky, its complexity and diversity are attracting more drinkers, and related spirits like raicilla are also expected to rise in popularity.
Key takeaway:
The beverage alcohol industry in 2025 is characterized by significant diversification and a response to evolving consumer preferences, with notable growth in no/low-alcohol options, cannabis beverages, and tequila/agave spirits, alongside challenges in the beer and wine categories and the looming threat of tariffs. Ready-to-drink cocktails continue their strong performance, particularly among younger consumers.
Main trend (name): The Diversifying Drinks Cabinet: Beyond Traditional Alcohol
Description of the trend (please name it): The Diversifying Drinks Cabinet: Beyond Traditional Alcohol describes the significant shift in consumer preferences within the beverage alcohol industry in 2025, characterized by a growing interest and consumption of alternatives and adjacent categories beyond traditional beer, wine, and spirits. This includes the rising popularity of no- and low-alcohol options, the emergence and increasing acceptance of cannabis-infused beverages, the sustained growth of ready-to-drink cocktails, and a nuanced shift in the traditional alcohol segments with the continued strength of tequila and the burgeoning interest in mezcal, all while categories like traditional beer and wine face new challenges.
What is consumer motivation:
Seeking Healthier Alternatives (No/Low-Alcohol, Cannabis): Driven by health and wellness trends, consumers are looking for options that reduce or eliminate alcohol and may offer alternative benefits like relaxation.
Convenience and Variety (RTDs): The appeal of easy-to-drink, pre-mixed cocktails in a variety of flavors.
Exploring New Flavors and Experiences (Craft Tequila, Mezcal, Natural Wine): A desire for unique and artisanal products with distinct flavor profiles.
Nostalgia and Accessibility (Beer): While challenged, beer still holds a familiar and accessible place for many consumers, especially with the growth of non-alcoholic options.
Avoiding Perceived Negatives (Wine): Younger consumers may be turned off by wine's perceived complexity and association with older generations.
What is driving trend:
Increased Health and Wellness Awareness: Consumers are more focused on moderation and healthier lifestyles.
Legalization and Acceptance of Cannabis: The growing legalization of cannabis is opening up new beverage options.
Innovation in Flavor and Formulation: Brands are creating appealing and high-quality options in non-alcoholic, RTD, and craft spirits categories.
Social Media and Trend Cycles: The popularity of certain drinks can be amplified by social media and evolving trends.
Shifting Demographics and Generational Preferences: Younger consumers have different drinking habits and preferences compared to older generations.
What is motivation beyond the trend:
Social Occasions and Celebration: Alcohol often plays a role in social gatherings and celebratory events.
Relaxation and Enjoyment: Many consumers use alcohol to unwind and enjoy themselves.
Taste and Flavor Preference: Ultimately, the taste and enjoyment of a beverage are key drivers.
Description of consumers article is referring to (age, gender, income, lifestyle):
Age: Significant generational differences are noted, with Gen Z and millennials driving growth in no/low-alcohol, RTDs, and showing less interest in traditional wine. Older generations may still have a stronger affinity for wine and traditional beer.
Gender: RTDs are becoming more gender-neutral. Women may be more drawn to certain wine styles, while men show interest in craft spirits like mezcal. Overall trends seem to appeal broadly across genders.
Income: Not explicitly detailed, but the rise of "premium" RTDs and craft spirits suggests consumers are willing to spend more for quality. The affordability of RTDs also makes them accessible to a wider income range.
Lifestyle: Includes health-conscious individuals seeking moderation, those prioritizing convenience, adventurous drinkers exploring new flavors, and individuals influenced by social trends and peer preferences.
Conclusions:
The beverage alcohol industry in 2025 is undergoing a significant transformation driven by evolving consumer preferences for healthier alternatives, convenience, and unique experiences. While traditional categories like beer and wine face challenges, segments like no/low-alcohol, cannabis-infused drinks, and ready-to-drink cocktails are thriving. The tequila and agave spirits market remains strong with a growing interest in craft and artisanal options. This diversification suggests a dynamic future for the industry, contingent on brands' ability to adapt to these shifting tastes and navigate potential challenges like tariffs.
Implications for brands (various alcohol categories and distributors mentioned):
No/Low-Alcohol Brands: Significant growth opportunities exist by offering high-quality and innovative alternatives.
Cannabis Beverage Brands: Potential for substantial market expansion, especially by leveraging existing liquor distribution networks in legal states.
Beer Brands: Need to innovate with healthier options and find ways to attract younger consumers.
Wine Brands: Must adapt their marketing and product offerings to appeal to younger generations, focusing on approachable styles and less pretentious branding.
RTD Brands: Should continue to innovate with premium spirits, diverse flavor profiles, and clear product information to navigate a crowded market.
Tequila and Mezcal Brands: Focus on quality, craft production, and highlighting unique flavor profiles to capture the growing interest in premium agave spirits.
Distributors: Need to adapt their portfolios to include the growing categories like no/low-alcohol and cannabis beverages.
Implication for society:
Reflects a growing societal focus on health, wellness, and moderation in alcohol consumption.
The increasing acceptance of cannabis as an alternative to alcohol is also a notable social shift.
Implications for consumers:
Greater variety and choice in beverage options, catering to different preferences and lifestyles.
More convenient and potentially healthier alternatives to traditional alcoholic drinks.
Opportunities to explore new and exciting flavors and categories.
Implication for Future:
The beverage alcohol market will likely become more fragmented with the continued rise of alternative and niche categories.
Brands will need to be agile and responsive to rapidly changing consumer preferences.
Regulatory landscapes, especially regarding cannabis beverages and tariffs, will play a significant role in shaping the industry's future.
Consumer Trend (name, detailed description):
Name: Mindful Drinking and Beyond
Detailed Description: This trend encompasses consumers' conscious efforts to moderate their alcohol consumption, explore alcohol-free alternatives, and even consider other substances like cannabis for relaxation, driven by health and wellness concerns.
Consumer Sub Trend (name, detailed description):
Name: Premiumization Across Categories
Detailed Description: Even within growing categories like RTDs and tequila, there's a clear consumer demand for higher-quality products made with premium spirits and ingredients.
Big Social Trend (name, detailed description):
Name: The Evolving Social Norms Around Alcohol Consumption
Detailed Description: Societal attitudes towards alcohol are shifting, with greater acceptance of sobriety and alternative options, particularly among younger generations.
Worldwide Social Trend (name, detailed description):
Name: The Global Rise of Agave Spirits
Detailed Description: Tequila and mezcal are experiencing increasing popularity not just in North America but globally, with consumers drawn to their unique flavors and cultural significance.
Social Drive (name, detailed description):
Name: Seeking Alternatives for Relaxation and Socialization
Detailed Description: Consumers are looking for various ways to relax and socialize, and this is driving the demand for a wider range of beverage options beyond traditional alcohol, including those with lower or no alcohol content and cannabis-infused drinks.
Learnings for brands to use in 2025:
The no/low-alcohol segment represents a significant growth opportunity.
Cannabis beverages are increasingly becoming mainstream alternatives.
RTDs continue to be a strong performer, especially among younger consumers.
The demand for premium and craft spirits, particularly tequila and mezcal, is on the rise.
Appealing to younger consumers requires understanding their preferences for flavor, authenticity, and less traditional options.
Strategy Recommendations for brands to follow in 2025:
Alcohol Brands: Invest in developing high-quality no- and low-alcohol versions of their popular products.
Beverage Companies: Explore entering the cannabis-infused beverage market where legal.
RTD Brands: Focus on premium ingredients, unique flavor combinations, and clear labeling to stand out.
Wine Brands: Adopt more approachable marketing, consider alternative packaging, and highlight lighter, high-acid styles.
Spirits Brands: Emphasize craft production, unique terroir, and additive-free options for tequila and mezcal.
Final sentence (key concept) describing main trend from article:
The beverage alcohol landscape in 2025 is marked by a significant diversification beyond traditional categories, driven by health trends, evolving preferences of younger consumers, and the rise of alternatives like no/low-alcohol and cannabis-infused drinks, alongside the continued dynamism of tequila and ready-to-drink cocktails.
What brands & companies should do in 2025 to benefit from trend and how to do it:
Beverage alcohol brands and companies in 2025 should embrace the trend of diversification by innovating and expanding their offerings beyond traditional alcoholic beverages. This includes investing in the development of high-quality no- and low-alcohol alternatives, exploring opportunities in the burgeoning cannabis-infused beverage market where legally permissible, and continuing to capitalize on the popularity of ready-to-drink cocktails with premium ingredients and diverse flavor profiles. Traditional alcohol categories should adapt by wine brands focusing on more approachable styles and marketing to younger consumers, while spirits brands, especially in tequila and mezcal, should highlight craft production and unique flavor nuances. By understanding and catering to the evolving preferences for healthier options, convenience, and novel experiences, brands can position themselves for success in the dynamic beverage alcohol market of 2025.
Final Note:
Core Trend: Beverage Alcohol Diversification for Health and Lifestyle
Detailed Description: This core trend highlights the significant shift in the beverage alcohol industry towards a more diverse landscape, driven by consumer demands for healthier alternatives, convenient formats, and experiences that align with evolving lifestyles and preferences beyond traditional alcoholic offerings.
Core Strategy: Innovation and Portfolio Expansion
Detailed Description: The central strategy for brands involves actively innovating and expanding their product portfolios to include options in the growing no- and low-alcohol segments, exploring the cannabis beverage market where legal, and offering a variety of premium ready-to-drink cocktails, alongside adapting their approaches within traditional categories like wine and beer to appeal to changing consumer tastes.
Core Industry Trend: The Transformation of the Beverage Alcohol Market
Detailed Description: The beverage alcohol market is undergoing a fundamental transformation, moving beyond its historical reliance on traditional categories to embrace new and emerging segments driven by health and wellness trends, regulatory changes (particularly around cannabis), and the evolving preferences of younger generations.
Core Consumer Motivation: Seeking Choice, Convenience, and Well-being in Beverage Consumption
Detailed Description: Consumers are primarily motivated by the desire for greater choice in their beverage options, seeking convenient formats that fit their lifestyles, and increasingly prioritizing their health and well-being when making decisions about what to drink, leading to the rise of non-alcoholic and lower-alcohol alternatives alongside innovative offerings in other categories.
Final Conclusion: The beverage alcohol trends of 2025 clearly indicate a market in significant flux, with consumers driving a diversification beyond traditional alcohol through their demand for healthier options, convenience, and new experiences, presenting both challenges and significant opportunities for brands across all categories to adapt and innovate to meet these evolving needs and preferences.
Core Trend Detailed (words on Core Trend): The core trend of Beverage Alcohol Diversification for Health and Lifestyle underscores a fundamental reshaping of the alcoholic beverage industry. Consumers are no longer solely focused on traditional beer, wine, and spirits; instead, their choices are increasingly influenced by factors such as health and wellness concerns, the desire for convenient and ready-to-drink options, and a willingness to explore new categories like cannabis-infused beverages. This diversification reflects a broader shift in lifestyle choices, with moderation, health consciousness, and the search for novel experiences playing a significant role in what consumers choose to drink. This trend compels brands across the spectrum to innovate and adapt their offerings to cater to this evolving and more nuanced demand.
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