Alcohol consumption has taken successful: the variety of international shoppers saying they drink alcohol weekly has dropped within the final decade. This doesn’t imply the alcohol business is drying up simply but, although. In Europe, extra individuals nonetheless drink alcohol weekly than eat quick meals, however there are new challenges the sector has to adapt to. 

A brand new wave of health-consciousness, way of life modifications, and shifts in shopper demand means it’s tougher than ever to know the panorama. So, we’ve taken a deep dive into GWI Alcohol to seek out the most important tendencies within the business, and combined them collectively right here for you.

Latest tendencies in alcohol consumption

The 0% drinks wave

The share of People who drink alcohol is on the decline. Amongst these of their 30s, curiosity in beers/breweries (-13%) and cocktails/cocktail bars (-9%) has dropped since 2021. As shoppers look to prioritize well being and wellness, reducing consuming out of their diets is usually a go-to. It’s a legitimate motive to go tee-total – the most well-liked motive for shoppers to participate in Dry January is to enhance their total well being, for instance. However we’re seeing a bigger cultural shift at play too. 

In our US knowledge, we’ve seen a major improve within the variety of Gen Z who say they by no means devour alcohol. Gen Z are more likely to say they keep away from consuming to save cash, keep away from hangovers, and keep away from getting drunk. Ingesting is often extra frequent amongst different generations, with 1 / 4 of Gen Z saying they by no means drink alcohol, in comparison with 17% of Gen X. They’re 31% extra doubtless than common to say they’re occupied with low/no alcohol. 

We are able to see the stark distinction after we evaluate Gen Z to millennials, primarily based on what they have been speaking about on-line again in the dead of night ages (2013). It’s clear that consuming is much less necessary to the youngest era, and fewer character defining.

Gen Z are 12% extra doubtless than common to say they drink no/low alcohol spirits and wines, they usually’re extra more likely to say they’ll by no means have alcohol whereas on a dinner date, too. This era’s relationship with alcohol may be very completely different to that of their dad and mom, which might assist form future generations’ perceptions of alcohol. Non-alcoholic options have lately entered the mainstream; globally, the quantity saying they drink non-alcoholic beer month-to-month has risen by 16% since 2018.

Persons are much less keen to compromise their well being to remain on pattern.

Which means foods and drinks manufacturers have to rethink their methods, and the narrative they create round alcoholic merchandise. Guinness and Heineken are two manufacturers closely advertising the 0.0% iterations of their beers – Gen Z rank them each within the prime 5 alcohol manufacturers they take into account stylish/cool. Offering a much bigger number of beverage decisions, or advertising the advantages of lowering alcohol consumption, will assist join with this rising viewers trying to decrease their alcohol consumption.

Extra shoppers are consuming at dwelling

As a lot as we’re out of the grasp of the pandemic now, a hangover from life beneath lockdown has remained – staying in. This mentality shift goes hand in hand with alcohol consumption: within the US, extra individuals drink alcohol at dwelling often/usually than they do when going out.

It’s no shock with the present financial local weather, shoppers feeling the pinch would sooner swap costly cocktails with drinks bought on the grocery store. When asking shoppers what they’d lower out of their budgets throughout powerful instances, alcohol was third on the listing, forward of clothes, magnificence, and residential leisure. However to know how usually individuals drink, it’s value contemplating why they’re consuming within the first place.

Bars and nightclubs have historically been the go-to locations to drink for an enormous event, however extra intimate gatherings at the moment are on the rise. Analysis in our celebrations report discovered that on the entire, amongst shoppers with a small quantity of financial savings, 35% report celebrating much less. However when they’re celebrating, there’s extra of an emphasis on smaller, informal get-togethers: arts and crafts events or wellness gatherings.

And when drinks are concerned, youthful generations want to get artistic. Gen Z are 22% extra doubtless than common to say that they’re occupied with cocktail making, and usually tend to say that they get pleasure from attempting easy drinks that they’ll replicate at dwelling. Inspo-led social media content material can encourage an viewers to mix new drinks up in a easy recipe: Pinterest customers are 42% extra more likely to say they’re into mixology than the typical drinker, and the hashtag ‘#mixology’ has over 2 billion views on TikTok.

Drinks spilling over to different international locations

As globalization continues marching on, we’re consuming extra of different international locations’ cultures than ever earlier than. You’ll find examples of this in western teenagers who love Okay-pop, bubble tea, and anime. So, what does this imply for alcohol tendencies?

There’s an urge for food for attempting new issues. Helped by some efficient advertising and altering demographics, People are getting a style for Mexican drinks, with extra saying tequila is their favourite alcoholic beverage than craft or lite beer. However drinks are touring additional than international locations the place a border is shared, too.

Spirits from Asia, resembling Japanese sake or South Korean soju, have seen their reputation develop within the Western world. And that’s earlier than contemplating Japanese exports of historically western drinks amongst youthful shoppers: Gen Z and millennials within the UK and US are 72% extra doubtless than Gen X and child boomers to say they’ve drunk Roku gin. In return, the Brits have tried their hand at historically Japanese alcohol too, as sake has begun cropping up as a meals pairing on a number of the nation’s finest menus.

Within the UK, the variety of millennial restaurant-goers who say that they’re occupied with different cultures/international locations has elevated 9% year-on-year.

Meals and beverage tendencies are intrinsically linked – whereas meals pairing being a major consideration for alcohol selection when eating out most likely isn’t a shock to many, this issue is available in third for consuming at dwelling – behind solely taste and value. New alcohol consumption tendencies will be anticipated by paying an in depth eye to native meals tendencies. If a delicacies is ramping up in reputation, don’t be shocked to see the nation’s drinks shut behind.

The craft craze isn’t slowing down

In the case of consuming, individuals are on the lookout for one thing a bit completely different. That is largely indicative of a wider pattern, an indication that customers are on the lookout for extra native choices: the variety of alcohol drinkers who say that they like to purchase from native/impartial retailers has elevated since 2020.

The most effective examples of how the market circumstances have facilitated impartial drinks manufacturers in recent times is the UK’s booming gin business. Following the repealing of the 1751 Gin act in 2009, the gin-novation out there has seen it rise to prominence.

Whereas gin is the least common alcoholic drink of the 19 drinks we monitor in 6 international markets, it ranks fifth within the UK.

Craft beer has been a booming business over the previous few years – the variety of shoppers within the UK who say they drink Brewdog, pioneers of the craft business, has elevated since final yr. That is one other alcohol pattern birthed from the youthful shoppers. Not solely are Gen Z alcohol drinkers 10% extra more likely to say that they purchase from native/impartial retailers, however they’re 24% extra more likely to be drawn to craft, small batch, or regionally produced drinks after they’re selecting what to purchase to drink at dwelling. They discover the look of the packaging much more interesting, which is why brightly coloured IPAs and pure wines are resonating a lot with youthful drinkers.

Along with daring branding, these drinks are sometimes marketed as extra sustainable, eco-friendly, or moral. These drinks are greater than only a tasty deal with – they’re an indication of a shopper’s character too, signaling that these shoppers are selecting to assist manufacturers which resonate with their values.

A low calorie can

Whereas reducing alcohol out altogether might be the healthiest strategy, the highest motive those that want to scale back their alcohol consumption say they achieve this for well being causes. Globally, out of the 13 traits we monitor, shoppers usually tend to describe themselves as health-conscious than artistic, price-conscious, or social/outgoing.

To attach with this health-conscious crowd, there was a rise within the availability of lighter, low calorie drinks resembling onerous seltzers. Whereas a glass of wine might include as much as 158 energy, a can of White Claw incorporates simply 95. And shoppers in North America are taking discover; over 1 / 4 say they’ve drunk a tough seltzer within the final month.

Whereas speaking about alcoholic drinks from a well being perspective is usually a little bit of a tightrope stroll, low calorie drinks can positively hit the mark with youthful, extra energetic shoppers. Since 2020, the variety of Gen Z and millennials within the States who’ve consumed drinks like onerous seltzers and onerous kombucha has elevated by 13%, and amongst weekly health club goers this will increase to 24%.

The large alcohol tendencies for 2024

Whether or not shoppers want to steadiness their food plan, attempt one thing from a small brewery, one other nation, and even go teetotal, the present alcoholic beverage panorama has some key tendencies to be careful for:

Low-or-no alcohol is on the rise

As extra individuals, significantly Gen Z lower down on their alcohol consumption, manufacturers are racing to satisfy this demand with 0% iterations of their merchandise. It’s a part of an elevated deal with well being and wellness, however represents a wider cultural shift occurring among the many youngest shoppers.

Extra are staying in as an alternative of going out

Talking of cultural shifts, individuals are opting to remain in. This can be a little bit of a change in the place and why individuals are consuming, as the explanations they purchase alcohol differs from after they’re out and about. Value is a extra necessary issue, however some are additionally trying to get artistic and blend up new cocktails, too.

Persons are trying throughout borders for brand new drink decisions

Simply as media and meals consumption tendencies unfold around the globe, so do alcoholic drinks tendencies. US drinkers are huge on Tequila, whereas within the UK, Japanese soju is all the craze. Greater than ever, shoppers want to swap issues up, and take a look at one thing new.

Smaller breweries are stylish

Impartial breweries, small batch gins, and pure wine are all rising tendencies in alcohol consumption. Whether or not or not it’s for moral causes, or as a result of they only need one thing a bit completely different, shoppers are trying outdoors of the large manufacturers.

Well being-conscious shoppers need a low calorie choice

There are extra choices on the market for health-conscious shoppers not trying to compromise on their diets. Onerous seltzers have been an enormous hit with health club goers who don’t want the pointless energy, and with youthful shoppers too. Though it may be a tricky line to stroll, shoppers want to make allowances for treats of their wholesome life.