top of page
Writer's pictureInsightTrendsWorld

Insight of the Day: Spirits to outpace beer and wine

Findings: The global spirits sector is projected to grow faster in both volume and value than other beverage categories, driven largely by premiumization and changing consumer preferences, particularly among Gen Z. The sector is expected to see a compound annual growth rate (CAGR) of 3.6% in volume and 9.4% in value from 2023 to 2028, surpassing beer, wine, and soft drinks. Ready-to-Drink (RTD) cocktails and flavored alcoholic beverages (FABs) are key drivers, with premium ingredients, artisanal production, and exclusive techniques enhancing consumer appeal.

Key Takeaway: Premiumization in spirits is catalyzed by the consumer demand for high-quality, convenient, and luxurious experiences, coupled with the growth of Gen Z in the workforce and rising incomes. This shift is particularly evident in RTD formats, where bar-quality drinks are accessible at home.

Trend: "Premiumization" in spirits, marked by an increase in high-end, quality-focused products and the growth of FABs and RTD cocktails.

Consumer Motivation: Consumers, especially younger demographics, are motivated by convenience, quality, and a taste for luxury that aligns with their social and financial aspirations. The appeal of unique, artisanal spirits and ready-to-consume options reflects a shift toward more personalized, high-value experiences.

What is Driving the Trend: The growth in disposable incomes among Gen Z, demand for convenience, and a preference for premium experiences are major drivers. The popularity of RTD cocktails and hard seltzers also reflects consumer interest in on-the-go and home-friendly beverage options.

People Referred to in Article: Gen Z and Millennials are the primary focus, as they drive demand for high-quality, RTD spirits. The report also mentions key companies like Heineken, Suntory, and Diageo that are leading AI and digital innovations in the sector.

Description of Consumer Product or Service: Consumers are opting for spirits and RTD cocktails with premium ingredients, artisanal craftsmanship, and packaging that reflect luxury and convenience. Products include FABs, hard seltzers, and premium spirits such as whisky, Tequila, mezcal, and non-alcoholic spirits.

Consumer Age: Primarily Gen Z (18-25) and Millennials (25-40), with a focus on those entering the workforce and increasing their disposable incomes.

Conclusions: Premiumization is reshaping the spirits market, particularly through the rise of FABs and RTD cocktails that offer bar-quality experiences in convenient formats. AI and digital tools are set to further transform how brands interact with consumers and optimize production.

Implications for Brands: Brands must invest in premium ingredients, innovative packaging, and digital engagement, especially to connect with Gen Z. Emphasizing luxury, convenience, and sustainability in product offerings will enhance brand value and consumer loyalty.

Implications for Society: The rise of premium spirits reflects society’s shift toward experiential, quality-focused consumption and convenience, as well as the influence of digital and AI advancements on consumer behavior.

Implications for Consumers: Consumers benefit from an expanded range of high-quality, convenient spirits that elevate at-home socializing and provide luxury at accessible price points.

Implication for Future: The spirits market is set to become increasingly premium, with AI and data insights driving personalized experiences and operational efficiency. Brands that leverage these tools will lead in capturing the emerging market for premium RTDs.

Consumer Trend: Demand for affordable luxury in convenient formats

Consumer Sub-Trend: Growth of RTDs and hard seltzers among younger consumers

Big Social Trend: Shift toward premium experiences that blend convenience and quality

Local Trend: Increasing demand for RTD cocktails in Latin America, the Middle East, and Africa

Worldwide Social Trend: Global premiumization of the spirits market, with a focus on quality, convenience, and sustainability

Name of Big Trend Implied by Article: Affordable Premiumization in Spirits

Name of Big Social Trend Implied by Article: Quality-Driven Convenience

Social Drive: Rising incomes among younger consumers and the influence of AI and digital tools on brand interactions

Learnings for Companies to Use in 2025: Companies should leverage premium ingredients, sustainable packaging, and AI-driven insights to create products that meet Gen Z’s demand for quality and convenience. Marketing efforts should focus on the luxury and artisanal aspects of RTDs and FABs.

Strategy Recommendations for Companies to Follow in 2025:

  1. Embrace AI and Digitalization: Use AI to enhance operational efficiency, personalization, and consumer engagement.

  2. Invest in Premium Ingredients and Craftsmanship: Emphasize high-quality ingredients and artisanal techniques to capture the premium market.

  3. Expand RTD and FAB Offerings: Develop innovative RTD products that offer bar-quality experiences in convenient formats.

  4. Focus on Sustainable Packaging: Align with environmental trends by investing in sustainable, recyclable packaging.

Final Sentence: The primary trend for 2025 is affordable luxury in spirits, with a focus on convenience, premium quality, and sustainable innovation.

What Brands & Companies Should Do in 2025: Brands should prioritize premium, convenient offerings that resonate with Gen Z’s preferences for quality and accessibility. Leveraging AI for consumer insights, focusing on high-quality ingredients, and enhancing sustainability in packaging will drive growth in this premiumizing market.

コメント


bottom of page