With Gen Z entering the drinking age, an appreciation for global flavors and new preferences toward health and wellness, the alcohol and spirit industry is sure to be shaken up!
As we move into 2024, the dynamic landscape of alcohol and spirits is undergoing exciting changes that businesses should monitor. Finding creative ways to engage with these changes in a way that keeps the integrity of your brand is the key to creating renewed excitement for your products and maintaining the current client base.
So what’s new? Read on to explore the anticipated alcohol and spirit trends for 2024 and insights into the evolving preferences of today’s consumers.
5 Cocktail and Spirits Industry Trends to Watch in 2024
In 2023, the beverage industry continued to capitalize on the growth of celebrity-developed brands, the rise of mocktails and low-alcoholic spirits, an expansion of transparency, sustainability, and diversity initiatives, and the trend of established and premium brands entering the ready-to-drink space. As we move into 2024, those trends will, arguably, be most influentially molded by the Gen Z value system, with nearly half of Gen Z reaching the legal drinking age by the end of 2024.
Here is what we’ve been seeing:
1. Rising Consumer Familiarity with Asian Spirits
Datassential reports there has been an increase in consumer interest in soju at 50 percent, in baijiu at 37 percent, and in shochu at 40 percent, most notably amongst Gen Z, who show as much affinity with them as for more established categories like bourbon.
Japanese shochu, Korean soju, and Chinese baijiu are among some of the oldest and most widely consumed worldwide, though they are still new to many American consumers. While Japanese whisky popularity has been rising for several years, a broader range of Asian spirits is expected to gain momentum in 2024.
“This will likely help propel innovation in blended categories that include those ingredients, like sake soda or a soju seltzer,” says Claire Conaghan, the associate director of Datassential.
Additionally, American consumers have been more curious about spirits distilled from a broader range of base ingredients, like rice, said Brandon Hill, the founder and master distiller of Tokki Soju, the first American-made, handcrafted soju.
2. Mocktails And Low-Alcohol Beverages
Mocktails have taken the cocktail industry by storm as the quintessential accessory of a social night out without the health detriment or hangover of traditional alcoholic beverages. Regardless of why a person might want to avoid alcohol, mocktails (or non-alcoholic cocktails) are a trend that is here to stay.
In a podcast by “The Marketplace Morning Report,” mocktails have expanded rapidly in recent years due to a rise in product quality as well as a broader public interest in decreasing alcohol intake. According to research by Nielsen, the growing “sober curious” movement is primarily driven by younger people seeking healthier alternatives to traditional drinks.
(Learn how to replicate the taste of cocktails without the alcohol by reading our blog post.)
Mid-strength spirits are also emerging with the arrival of brands such as Sommarøy, offering gin and vodka expressions with a mellower 27.5% ABV. According to data from IWSR Drinks Analysis, the majority of people who consume alcohol alternatives still consume alcoholic beverages. “In a landscape where non-alcoholic options have gained significant traction, we recognized the absence of a mid-strength spirit that could meet the discerning standards of these moderation-minded consumers,” says co-founder Michael Barkin.
3. Gen Z Comes of Drinking Age
According to a Pew Research Center report, Gen Z (born between 1997 and 2012) is the most diverse population to date, with the potential to be the highest educated. According to a 2023 ICSC report, Gen Z’s progressive ethos has already begun to impact the industry, with 47% wanting to support brands that address racial, and gender equality, and sustainability. The same ICSC report noted that 56% of respondents said they would spend more for sustainably sourced products. This may create challenges for brands that have survived off historical popularity.
4. The Rise of RTD Cocktails
According to BevAlc Insights, 34% of survey participants (up from 32% last year) said they plan to buy RTD cocktails in the coming year, and the majority plan to try new brands in 2024.
“In the beginning, the appeal of the category was a result of several attributes, including its correlation to the cocktail boom and the diversity of options,” says Liz Paquette, the head of consumer insights at Drizly. “Many consumers also reached for RTDs because the category offered more ingredient transparency than competing categories like hard seltzer. As the category matures, it continues to expand the breadth of the offerings, with nearly every popular cocktail now available in a convenient, ready-to-enjoy format.”
Despite its rapid expansion and innovation in the past ten years, the RTD category is far from saturated. We anticipate more developments, and with our support, 2024 might be your year!
5. Coffee as a Cocktail Ingredient
Espresso Martinis have paved the way for a new era of coffee cocktails! “It’s pretty easy to understand why coffee is such an enduringly popular cocktail component,” says T. Cole Newton, the owner of New Orleans’ Twelve Mile Limit and the current president of the United States Bartenders’ Guild. “Bitter, acidic, fruity, nutty, or more, depending on the varietal—coffee can have so many of the flavors that mixologists look for.”
Coffee offers a point of relatability for consumers and a functional burst of caffeine. As a result, drinks experts anticipate that other coffee cocktails will take over from the Espresso Martini. Interest in the search term ‘Carajillo’ has doubled in the past year, according to Google Trends, with some people already predicting that it might be the ‘it’ drink of 2024.
Ready to Shake Up Your Alcohol and Spirits Game in 2024?
Our flavor experts at Northwest Naturals are ready to help you reach your 2024 flavor goals and create delicious applications that cater to all! Contact us or request a sample today at 425.881.2200 or custserv@nwnaturals.com.