Insight of the Day: World Spirits Report 2024: Liqueurs & speciality spirits
- InsightTrendsWorld
- Dec 18, 2024
- 7 min read
Detailed Findings:
Liqueur Market Growth: The liqueur sector is experiencing steady growth, with global volume sales projected to reach 130.7 million nine-liter cases in 2024 (up from 129 million in 2023) and value sales estimated at US$52.7 billion (up from US$50.6 billion).
Home Bartending Trend: While the at-home bartending trend sparked by the pandemic has কিছুটা subsided, rising inflation and the desire for affordable indulgence are keeping it relevant.
Millennials Driving At-Home Consumption: 30% of Millennials are starting social gatherings with homemade cocktails, up significantly from 16% five years ago.
Indulgence and Lower ABV: Consumers are drawn to liqueurs for their indulgent flavors and often lower ABV, aligning with trends towards moderation and quality.
Cocktail Shooters Trend: The popularity of cocktail shooters, particularly the Baby Guinness (Kahlúa and Baileys), is driving growth for liqueurs in the on-trade. This has contributed to the growth of brands like Kahlua.
Espresso Martini Craze: The Espresso Martini trend continues to be a major growth driver for coffee liqueurs, with significant increases in orders and online searches.
Kahlúa's Success: Kahlúa, as a key ingredient in both Baby Guinness and Espresso Martinis, has benefited significantly from these trends, experiencing 19% growth in 2023.
Cream Liqueurs Growth: The cream liqueurs category saw substantial growth (29.8%) in Britain's on-trade in 2023.
Flavor and Quality Prioritized: Consumers are prioritizing flavor and the quality of ingredients, benefiting the liqueurs and specialty spirits sectors.
Brands to Watch: Kahlúa, Allora, and Licor 43 are highlighted as brands to watch in 2025 due to their recent success and innovative strategies.
Key Takeaway:
The liqueurs and specialty spirits sectors are thriving as consumers seek flavorful, high-quality ingredients for both at-home and on-trade consumption, driven by trends like cocktail shooters, Espresso Martinis, and a desire for affordable indulgence.
Trend:
Premiumization of Home Consumption: Consumers are seeking to recreate premium bar experiences at home, driving demand for quality liqueurs.
Flavor-Focused Indulgence: Consumers are prioritizing flavor and seeking out liqueurs that offer unique and indulgent taste experiences.
Cocktail-Driven Growth: Specific cocktails, like the Baby Guinness and Espresso Martini, are significantly boosting the sales of certain liqueurs.
The Rise of Cocktail Shooters: These are becoming increasingly popular, particularly in the UK on-trade.
Consumer Motivation:
Affordable Indulgence: Seeking luxurious experiences at home as a more affordable alternative to going out.
Flavor Exploration: Desire for new and exciting taste experiences.
Social Connection: Using homemade cocktails as a way to enhance social gatherings.
Status and Trend Following: Participating in popular cocktail trends like the Espresso Martini.
What is Driving the Trend:
Inflation and Cost of Living: Consumers are looking for ways to save money without sacrificing enjoyment.
Lingering Pandemic Effects: The at-home bartending habit, though diminished, still has some influence.
Social Media Influence: Trends like the Baby Guinness and Espresso Martini are amplified by social media.
Desire for Indulgence and Flavor: Consumers are prioritizing flavor and seeking out products that deliver a sense of luxury.
Motivation Beyond the Trend:
A desire for escapism and enjoyment during times of economic uncertainty.
A sense of accomplishment and creativity from making cocktails at home.
A way to connect with friends and family through shared experiences.
Who are the people the article is referring to?
The article refers to consumers globally, with a particular focus on Millennials who are driving the at-home cocktail trend. It also mentions Gen Z in relation to brands like Licor 43, which are successfully using aesthetics to target younger demographics.
Description of Consumers, Product, or Service the Article is Referring to and What is Their Age:
Consumers: Consumers of legal drinking age, with a particular emphasis on Millennials (born 1981-1996) and Gen Z (born 1997-2012) who are interested in cocktails, flavor exploration, and affordable indulgence.
Product: The article focuses on liqueurs and specialty spirits, particularly coffee liqueurs (Kahlúa, Mr Black), cream liqueurs (Baileys), and other flavorful liqueurs (Italicus, Savoia, Licor 43, Allora).
Service: The article touches on both the on-trade (bars, restaurants) and at-home consumption of liqueurs.
Conclusions:
The liqueurs and specialty spirits sectors are well-positioned for continued growth, driven by evolving consumer preferences and consumption habits.
Flavor, quality, and the ability to tap into popular cocktail trends are key factors for success.
Brands that can effectively engage consumers both at home and in the on-trade will be best positioned to thrive.
Implications for Brands:
Focus on Flavor and Quality: Prioritize the development of high-quality, flavorful liqueurs that meet consumer demand for indulgence and premium experiences.
Embrace Cocktail Trends: Develop marketing campaigns and activations that align with popular cocktail trends, such as the Espresso Martini and cocktail shooters.
Target Home Mixologists: Provide recipes, tips, and inspiration for consumers who are making cocktails at home.
Leverage Social Media: Utilize social media platforms to engage with consumers, promote new products, and amplify cocktail trends.
Consider Lower ABV Options: Explore the development of lower-ABV liqueurs that cater to the growing trend of moderation.
Implication for Society:
Potential for increased at-home alcohol consumption, although the focus on quality and lower ABV may mitigate some risks.
Continued growth of the cocktail culture and the popularity of home bartending.
Implications for Consumers:
Greater access to a wider variety of high-quality, flavorful liqueurs.
More opportunities to experiment with cocktails at home.
Potential for increased spending on alcohol, particularly if at-home consumption continues to rise.
Implication for Future:
The liqueurs and specialty spirits sectors are likely to continue to grow, driven by evolving consumer preferences and the enduring popularity of cocktails.
Innovation in flavor, format, and marketing will be crucial for brands to remain competitive.
The at-home consumption trend is likely to persist, creating opportunities for brands that can effectively engage consumers in this space.
Consumer Trend:
At-Home Mixology: Consumers are increasingly making cocktails at home, driven by a desire for affordable indulgence and a growing interest in mixology.
Flavor-Forward Choices: Consumers are prioritizing flavor and seeking out liqueurs that offer unique and exciting taste experiences.
Consumer Sub-Trend:
Espresso Martini Mania: The Espresso Martini continues to be a hugely popular cocktail, driving sales of coffee liqueurs.
Cocktail Shooter Popularity: These are gaining traction in the on-trade, particularly in the UK.
Big Social Trend:
The Experience Economy: Consumers are prioritizing experiences over material possessions, and this is influencing their choices in the spirits category.
The Cost-Of-Living-Crisis: Consumers are looking to save money, but still have a good time.
Local Trend:
UK On-Trade Cocktail Shooters: The article highlights the growing popularity of cocktail shooters in the UK on-trade.
Worldwide Social Trend:
Global Cocktail Culture: The popularity of cocktails continues to rise globally, driven by social media, travel, and a growing appreciation for mixology.
Name of the Big Trend Implied by Article:
The Liqueur Revival
Name of Big Social Trend Implied by Article:
The At-Home Indulgence Movement or The Experience Economy
Social Drive:
Affordable Luxury: Consumers are seeking out ways to experience luxury and indulgence without breaking the bank.
Flavor Exploration and Novelty: Consumers are driven by a desire for new and exciting taste experiences.
Learnings for Companies to Use in 2025:
The at-home consumption trend is here to stay.
Flavor and quality are paramount.
Cocktail trends can significantly impact sales.
Social media is a powerful tool for engaging consumers and amplifying trends.
Lower ABV options are increasingly appealing to consumers.
Strategy Recommendations for Companies to Follow in 2025:
Invest in product development focused on flavor innovation and quality ingredients.
Develop marketing campaigns that align with popular cocktail trends.
Create resources and content to support at-home mixologists.
Leverage social media to engage consumers and build brand awareness.
Explore the development of lower-ABV or no-ABV liqueurs.
Focus on the "instagrammability" of serves to attract younger demographics.
Use celebrity partnerships and creative campaigns to increase brand awareness.
Continue to put an emphasis on "owning" a specific moment (such as the aperitivo).
Final Sentence (Key Concept):
The liqueurs and specialty spirits sectors are experiencing a flavor-focused revival, driven by consumers seeking affordable indulgence, exciting cocktail experiences, and high-quality ingredients both at home and in the on-trade, presenting a significant opportunity for brands that innovate and adapt to these evolving preferences.
What Brands & Companies Should Do in 2025 to Benefit from the Trend and How to Do It:
Brands and companies should invest in developing and marketing high-quality, flavorful liqueurs that cater to the growing demand for at-home cocktail experiences, while also leveraging popular cocktail trends and social media to build brand awareness and engage consumers.
How to do it:
Product Development:
Focus on creating innovative and unique flavor combinations.
Use high-quality ingredients and emphasize craftsmanship.
Consider developing lower-ABV or no-ABV options.
Explore new formats and packaging that are appealing to home mixologists.
Marketing and Communication:
Develop campaigns that highlight the versatility of liqueurs in cocktails.
Create recipes and content that inspire consumers to experiment with cocktails at home.
Partner with bartenders and influencers to promote the brand.
Leverage social media platforms like Instagram and TikTok to engage with younger demographics and amplify cocktail trends.
Emphasize the "instagrammability" of serves and packaging.
On-Trade Strategy:
Partner with bars and restaurants to feature the brand in cocktails, particularly those that are trending.
Offer training and support to bartenders on how to use the product in innovative ways.
Consider creating signature serves that can be promoted in the on-trade.
Celebrity Partnerships:
Work with celebrities who align with the brand's image and target audience.
Develop creative campaigns that leverage the celebrity's influence and reach.
Embrace "Owning the Moment":
Identify a specific occasion or moment that the brand can be associated with (e.g., the aperitivo moment for Allora).
Develop marketing and product strategies that reinforce this association.
By implementing these strategies, brands and companies can capitalize on the "Liqueur Revival" and the "At-Home Indulgence Movement" driven by "Affordable Luxury" and "Flavor Exploration and Novelty". They can take advantage of "Consumer Sub-Trends" like "Espresso Martini Mania" and "Cocktail Shooter Popularity" to grow their business and connect with consumers in a meaningful way. They should be especially aware of the "Worldwide Social Trend" of a "Global Cocktail Culture" that will allow for continued growth in the market.
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