NavigatE The Competitive World Of Wine And Spirits

Wine and spirits industry is an essential part of our social lives.  The wine and spirit industry is always changing to meet consumer tastes and demands – from the rise of hybrid and indigenous wines to the expansion of low to no alcoholic beverages.  
 
Research reveals “the Global Wine Market accounted for $489.3 billion in 2021 and is estimated to grow to a market size of $825.5 billion by 2030, growing at a compound annual growth rate (CAGR) of 6.1% through 2030,” according to Dimensional Insight. 

In today’s competitive wine and spirits industry, it is really important to stay abreast of industry trends to develop the best campaign to generate brand and consumer awareness for the wine or spirit.  To help wine and spirits companies break through the clutter, Allen Marketing Communications, Inc, a boutique wine and spirits PR agency in NYC, will discuss the top five wine and spirits trends that are shaping the industry this year.
 
Hybrid And Indigenous Wines
 
Hybrid and indigenous wines are two of the most prominent trends in the wine industry today. These wines offer unique flavors and a sense of authenticity that is increasingly appealing to consumers.
 
Hybrid wines are created by crossbreeding two or more grape varieties to produce a new wine varietal that combines the best characteristics of each parent. This process results in a wine that is uniquely different from traditional wines. 
 
Indigenous wines, on the other hand, are wines made from grape varieties that are native to a specific region. These grapes are uniquely suited to the climate and soil of that region, resulting in a wine that is truly representative of its terroir. 
 
Hybrid and indigenous wines are popular because consumers desire unique and authentic wine experiences. Wine drinkers are becoming more adventurous in their wine choices, and these wines provide an opportunity to try something new and different. Additionally, there is a growing interest in supporting local businesses and products, which makes indigenous wines particularly appealing.
 
Another factor contributing to the popularity of these wines is their quality. Both hybrid and indigenous grapes are often grown with care and attention to detail, resulting in high-quality grapes and wines. This attention to detail is particularly important for indigenous grapes, which require specific growing conditions to thrive.
 
Finally, the increasing popularity of these wines is also due to the expanding market for wine. As wine consumption continues to grow around the world, consumers are looking for new and exciting options. Hybrid and indigenous wines offer a unique and authentic experience that is increasingly appealing to a wide range of consumers.
 
Alcoholic Ready To Drink Wines Embraces Natural And Herbal Flavors
 
Alcoholic ready-to-drink (RTD) wines with natural and herbal flavors are a growing trend in the wine and spirits industry. These beverages are made by infusing wine with natural herbs, fruits, and vegetables to create unique and flavorful combinations.
 
“The ready-to-drink segment, which includes malt-based, wine-based and spirit-based beverages, has been the fastest growing portion of the market and is expected to grow by an additional 8 percent by 2025. For existing RTD brands, this means more competition and the need to innovate with new offerings.” (Source: Overproof.com)
 
Alcoholic RTD wines with natural and herbal flavors are key drivers behind these popular wines. Consumers are becoming more health-conscious and are seeking out alternative beverages that are made using natural ingredients and free from artificial preservatives and additives.
 
“According to Sensient, Millennials, who account for 62 percent of the RTD market, are now looking for RTDs that provide more flavor without the sugar. Millennials also tend to be early adopters of trends, making it even more important to address this demand.” (Source:  Overproof.com)
 
Alcoholic RTD wines with natural and herbal flavors are also popular among younger consumers who are looking for a more contemporary wine experience. These beverages are often packaged in convenient and portable containers such as cans or bottles, making them easy to consume on the go or at social events.
 
Versality is another factor contributing to the popularity of alcoholic RTD wines with natural and herbal flavors. These beverages can be consumed on their own or used as mixers in cocktails. For example, a wine-based cocktail made with natural and herbal flavors can be a healthier alternative to traditional cocktails made with sugary mixers and artificial flavors.
 
Finally, the use of natural and herbal flavors in alcoholic RTD wines can provide a unique and memorable drinking experience. These flavors can range from floral and fruity to spicy and earthy, catering to a wide range of taste preferences.
 
Low To No Alcoholic Beverages
 
One of the major trends in the beverage industry in recent years has been the expansion of products in the low to no alcoholic beverage category. Consumers are increasingly looking for healthier and more mindful options when it comes to their beverage choices. Low to no alcoholic beverages offer an attractive option for those who want to enjoy a drink without the negative effects of alcohol.
 
“According to Sensient, only 17 percent of those who consume low and no-alcohol beverages totally abstain from drinking alcohol. Most consumers in this segment, 58 percent, will actually switch among low, no, and full alcoholic beverages during the same drinking event. The same flavor trends that are being seen in spirits and RTDs, are also influencing low and no-alcohol products.” (Source: Overproof.com)
 
This trend is not limited to just non-alcoholic beer, as the category has expanded to include wine, spirits, and even cocktails. These beverages are often marketed as healthier options that are lower in calories, sugar, and other harmful ingredients. They are also appealing to consumers who want to avoid the negative health effects of alcohol, such as hangovers and dehydration.
 
Low to no alcoholic beverages are also gaining popularity among younger consumers, Gen Z and younger Millennials, who are looking for a more social and fun drinking experience without the negative consequences of alcohol. Many companies are capitalizing on this trend by creating innovative and exciting products in the low to no alcoholic beverage category, such as mocktails and alcohol-free spirits.
 
The trend towards low to no alcoholic beverages is not just limited to health and wellness considerations but also has a social and environmental aspect. Many consumers are becoming more aware of the impact that their choices have on the environment and are seeking out sustainable and eco-friendly options. Many low to no alcoholic beverage companies are using sustainable and organic ingredients, and are also creating innovative packaging solutions that are more environmentally friendly.
 
Ultra-Premium Wines
 
Ultra premium wines are considered the ultimate luxury wine experience, made from the highest quality grapes and aged for a significant period to enhance their flavor profile. They are often made in limited quantities, making them a rare and exclusive product.
 
Ultra-premium wines cater to consumers who are willing to pay a premium for a truly exceptional wine experience. These wines are often served at high-end restaurants and are the perfect accompaniment to gourmet meals. They are also popular among collectors who are looking to add to their wine collections.
 
“In the US, premiumization bolstered revenue in all the main categories of spirits, beer and wines.  Nearly 82 percent of the US spirits industry’s total revenue was from the sale of high-end spirits brands, and the wine category also has seen premium offerings drive sales, with $20+ bottles outperforming lower spirit price points.” (Source: Snipps.com)
 
The rise of ultra-premium wines can be attributed to a number of factors, including the growing interest in wine culture, the increased purchasing power of consumers, and the globalization of the wine market. As consumers become more educated about wine, they are willing to pay more for a wine that offers a unique and memorable experience.
 
In addition, the globalization of the wine market has led to an increased demand for rare and exclusive wines. Consumers are no longer limited to local or regional wines and are willing to pay a premium for wines from around the world.
 
“The eco-conscious trend goes hand-in-hand with premiumization. Even younger demographics are willing to prioritize premiumization and eco-conscious characteristics. The focus is on quality over quantity and that includes shopping brands that are transparent about how their ingredients are sourced and what they are doing to reduce their impact on the environment. (Source: Overproof.com)
 
Finally, consumers purchasing power have also contributed to the rise of ultra-premium wines. As incomes rise, consumers are more willing to spend money on luxury items such as wine.
 
Online Sales

The Covid-19 pandemic has given rise to e-commerce sales, changing the way consumers purchase their favorite products. Online sales and direct-to-consumer delivery are becoming increasingly popular, allowing consumers to purchase their favorite products from the comfort of their own homes.
 
“Today, DTC sales represent about 10 percent of total wine industry sales in the U.S. and about 65% of the average winery’s total revenue in 2021. DTC sales have continued strong, with 2021 sales having exceeded every monthly benchmark compared to 2020.” (Source: Dimensional Insight)
 
In addition, the COVID-19 pandemic has accelerated the trend toward online sales and direct-to-consumer delivery. Many consumers have turned to online shopping as a safer alternative to in-person shopping.
 
The wine and spirits industry is highly competitive, embracing new technologies such as virtual reality and augmented reality to capture attention from Millennial and older Gen Z consumers.
 
Wine and spirits PR agencies such as Allen Marketing Communications, Inc. are skilled at increasing the wine and spirits visibility and market share through strategic planning, media relations, social media and influencer marketing, cause-related marketing, new product introductions and special events to enhance the liquid to lips discovery.

Our team of wine and spirits public relations professionals can help brands cut through the clutter and create a strong identity that resonates with their target audience.  
 
By Joanna Allen, chief executive officer, Allen Marketing Communications, Inc.