The alcoholic beverage industry has experienced rapid change in the past few years. As consumer tastes develop, alcohol retailers must adapt. City Hive conducted an investigation and found the four biggest trends of 2020:
Organic and sustainable wine has risen in popularity in the most recent years. As customers become more conscious of their purchases, they are increasingly discerning of the wine production and quality of ingredients. Interestingly, millennials drink more wine than baby boomers. A study found that 28% of millennials drink wine on a daily basis, making them a strong customer segment.
The popularity of wine can be attributed to new alternative packaging alternatives, including wine in cans and the growth of rose wines. In fact, sales of rose increased by 48% in 2019 alone. We are excited to see what the future holds for the wine category and look forward to further innovation.
2. Hard seltzer
Hard seltzer is gaining traction in the United States and analysts predict that by 2021, the hard seltzer category will be a $2.5 billion industry! These flavorful carbonated water beverages spiked with alcohol are extremely appealing to those looking for low-calorie and low-sugar options. Other types of customers who partake in hard seltzer include those who don’t like the taste of alcohol or are looking for drinks with low alcohol content.
Sales of hard seltzer surge during the summer, as customers look for canned ready-to-drink- beverages. Hard Seltzer has taken the American market by storm, and customers are increasingly opting for this beverage instead of beer, wine, and liquor. Among the two most popular brands are Truly and White Claw.
3. Beer that tastes less like beer
In the beer market, consumers are increasingly preferring local brands. The popularity of brewpubs and taprooms have encouraged consumers to order what’s local in the neighborhood. While craft beer has been leading this market for quite some time, there are new opportunities for low and no-alcohol beer.
In 2019, Peroni launched a premium alcohol-free version of its beer, and consumers are responding positively to experimental fruity infusions. This is because fruit makes it easy to mask beer’s quire taste, creating an alternative for those who are reluctant to try beer.
4. Spirits: high-end is in demand
The demand for high quality spirits is significantly increasing. The sales of spirits from the super premium and high end premium brands surged by 7% in 2018. This explains why brands are focusing on luxury offerings and premiumization. Brands are also pursuing experimentation, with new distillation techniques and use of botanicals.
Tequila and brown spirits, like bourbon and whiskey, are also popular. In addition, gin continues to be a consumer-favorite, with tea and botanical flavorings driving the category forward.
The alcoholic beverage industry is always changing with new innovations. From the rise of hard seltzer to the premiumization of spirits, there is a lot to keep up with!
City Hive can help alcohol retailers capitalize on these trends and digitally transform their stores. With our innovative e-commerce platform, retailers get access to data analytics, allowing them to track changing preferences.
Want to learn more about how City Hive can propel your store? Feel free to reach out and sign up for a demo!