Five Trends Driving Change in the Alcoholic Drinks Industry

Alcoholic drinks brands are facing a number of challenges, from a notable shift in consumers’ drinking habits to growing expectations for brands to be more sustainable, but new opportunities, such as collaborations with soft drinks brands, are examined in WARC’s latest industry report. 

The snapshot of the alcoholic drinks industry examines five shifts expected to impact marketing strategies in the year ahead.

Why industry shifts matter

Consumers are changing where and how often they drink, as well as expecting brands to place sustainability at the core of their operations. Keeping up with these evolving behaviours and advancements in the industry will be crucial for brands to meet consumer expectations, tap into emerging opportunities, and stay competitive.

Five alcoholic drinks trends

1. Gen Z’s appetite for social drinking declines: Alcohol is becoming less central to the social lives of Gen Z, who are increasingly opting for activities that do not revolve around drinking.
2. The rise of low and non-alcoholic drinks: Changes in drinking habits, with a focus on drinking in moderation, have resulted in consumers turning to low and non-alcoholic beverages more frequently.
3. Sustainable packaging gains traction: Consumers are increasingly expecting brands to operate sustainably. Brands are responding by adopting sustainable packaging to reduce their carbon footprint.
4. Soft drink brands expand into alcoholic RTD: Soft drink brands are diversifying into alcoholic beverages to tap into the market opportunity of the ready-to-drink (RTD) category.
5. Room for growth in e-commerce: Alcohol e-commerce continues to grow, supported by rising at-home consumption and increasing demand for convenience.