Lifestyle PR Agency Highlights Key Wine And Spirits Trends

The wine and spirits industry is constantly evolving to meet the ever changing of consumers – no and low alcoholic beverages, craft spirits, and premium wine and spirits. In a post-pandemic world, consumers' drinking patterns have embraced ready to drink cocktails at home, as well as innovative flavors in the spirits.

Did you know . . .
 

• “The alcohol industry is expected to have a compound annual growth rate (CAGR) of 7.45 percent  from 2022 to 2025.” (Source: Spirit of America)
• The global wine market is projected to reach  $434.6 billion by 2027, growing at an annual rate of 4.2 percent.” (Source: Spirit of America)
• “The global craft spirits market is projected to grow by $36.82 billion and grow at a rate of nearly 23 percent from 2021-2025.” (Source: Spirit of America)
• “No- and low-alcohol consumption across the world's leading 10 no/low markets (T10*), which account for approximately 70 percent of global no/low-alcohol volumes, grew by +5 percent in volume in 2023, and the market is now worth over USD 13bn.” (Source: IWSR)

In this blog, Allen Marketing Communications, Inc., a boutique wine and spirits and lifestyle public relations agency based in New York City, spotlights five key wine and spirits trends.

Premiumization And The Pursuit Of Perfection

Consumers are willing to pay for higher quality wine and spirits. Research reveals “the specialty super premium segment of wines and spirits is predicted to grow at a rate of 10 percent in 2024, especially if they are aged spirits, limited editions, or wines made from selected vineyards.” [Source: BrandMuscle].

Brands are integrating storytelling to highlight the products’ value proposition, history and other unique attributes.  Liquor companies are focusing on the brand image and packaging to convey a luxurious product.  Affluent consumers are also purchasing fine and spirits as an investment.

Craft Spirits Hold Steady In Growth

Craft spirits are extremely popular since customers opt for low-production, niche products with tangible and memorable flavors. Specialty distilleries are now diversifying their offerings to develop distinctive products by focusing on the raw materials, fermenting and distilling process and the storing methods.

“Craft spirits will continue to grow as they capture 23 percent of the total spirits sales globally, with categories including craft whiskey, gin, and rum,” [Source: Clarkston Consulting].

The Rise Of Non-Alcoholic And Low-Alcohol Beverages

Non-alcoholic and low alcoholic beverages present a new market for liquor companies to expand their product offerings.  In a post pandemic world, consumers shifted their drinking habits to embrace non-alcoholic and low-alcohol beverages as they pursue a healthier lifestyle.

Research shows “there will be a 31 percent increase in the market for non-alcoholic beverages due to increased demand for healthier products.” [Source: SevenFifty Daily]. In fact, the sober curious movement has celebrated non-alcoholic and low-alcohol beverages as Gen Z and other demographic groups.  Brands are now introducing new, innovative non-alcoholic and low-alcohol products to tap into this market.

Sustainability Takes Center Stage

Sustainability is now an important driving force in the wine and spirits industry. Consumers are becoming more conscious of the environmental consequences of their decisions, and they are looking for organic and environmentally friendly alcoholic products.

A recent study shows that “65 percent of consumers are concerned with sustainability while purchasing alcohol brands, and it is anticipated that this aspect will further expand in 2024.” [Source: BrandMuscle]. “Manufacturers of wines and spirits have also shifted to a green approach in line with their conservation efforts; for instance, wineries and distilleries are cutting their water consumption, using renewable energy, and switching to biodegradable packaging. For instance, the use of lighter bottles and having all the materials used to be recycled is the new trend that is preferred.” [Source: Clarkston Consulting]

Digital Transformation Of The Alcohol Industry

Digital technology is on the rise in wine and spirits, especially in the production, marketing, and even sales.  In a post pandemic world, “e-commerce alcohol sales are set to increase by 12 percent this year, as more and more people prefer to order their desired alcoholic products to be brought to their doorstep.” [Source: Clarkston Consulting].

Brands are expanding their customer base by using social media, influencer marketing, and niche-specific advertisements. “Data analytics and artificial intelligence are also helping organizations to provide product recommendations and promotions based on personal preferences, making shopping more convenient.” [Source: BrandMuscle]

Our talented team of wine and spirits pr professionals and social media strategists can help brand marketers elevate their wine and spirits products in their competitive landscape.  Contact us today.

​By Joanna Allen, chief executive officer, Allen Marketing Communications, Inc.