International spirits are evolving quickly to keep up with the demands of consumers today. Five experts share their opinions on trends disrupting the spirits market. These include ready-to drink and low alcohol offerings, as well as support for small producers.
Savory Success
Consumers seeking healthier options for a lifestyle are driving the demand for non-alcoholic and low-alcohol spirits and cocktail. Craft spirits are another notable trend, as they highlight local flavors and ingredients, adding an unique twist to industry offerings. Our signature Tomatini is a popular savory drink. It’s a favorite of all time, and its growing popularity inspired us to declare November 12 Tomatini Day. The event will be held annually in all of our stores. To kick off the celebration, we are dedicating an entire week from 12-18 November to this drink, complete with events and activities.
Health options
The consumer is willing to pay more for premium spirits because they value quality above quantity. Small-batch distilleries and artisanal spirits have risen in popularity as a result. We’ve seen that as part of the growing health-conscious movement, low-calorie spirits and cocktails are gaining in popularity. They are marketed as healthier options. We celebrate Dry January every year, and offer a variety of unique non-alcoholic cocktail options.
Tap into technology
We expect the trend to grow. It is possible for brands to tap into this trend by creating customized products like cocktail kits or personalized spirits. In the future, technology will play a greater role. In the future, innovations like blockchain tracking of ingredients, augmented reality and new distillation techniques will become commonplace. This is expected to help improve production while connecting brands to customers. Our cocktail recipes are enhanced by the use of the latest technologies, such as a sous vide to add flavor to spirits, syrups, or other products, and the rotary evaporator, which helps take them to the next step.
Genuine offerings are in high demand
Spirits industry moving towards premiumization as consumers are willing to pay more for better quality products. In tandem with this trend, the demand for low- or no-alcohol products is increasing, as health-conscious consumers and people who prefer a more balanced lifestyle are increasingly interested in these options. The consumer is also drawn to spirits that have distinctive flavors and innovative aromas, leading them to prefer eco-conscious brands. More people are choosing artisanal producers, who focus on quality and authenticity, instead of large producers. Travel and the exposure of different cultures has introduced people to the traditional spirits around the globe. These new products are now available in mainstream markets.
Customers are the key to success
This pandemic has led to many people making their own cocktails, which is a great way of gaining experience. Spirits are also becoming more popular. In addition to home experiments, the demand for Ready-To-Drink Cocktails (RTD) has risen, providing a premium, convenient experience. These trends have been shaped by social media. It is now easier to buy spirits online and connect with the producers. The increased accessibility has resulted in more customized shopping experiences, and closer relationships between the brands and customers.
Growth opportunities in E-commerce
The spirits industry is experiencing new things thanks to technological advancements such as virtual samplings. The consumer can add their own personal touch to the spirits by changing flavor profiles or blending. The emerging markets in Asia and Africa are predicted to present significant growth prospects. The convenience of e-commerce and the wider accessibility it offers will also drive the growing trend to buy spirits online. The brands are investing in more direct-to consumer models which will likely fuel the shift. The focus will continue to be on sustainability. While packaging continues to evolve, many brands explore carbon-neutral methods of production and ways that they can minimize their impact on the environment.
Scale and artisanal quality blended
We, and other large spirits brands, are adopting the trend of craft spirits through strategic acquisitions. This allows them to access authenticity and unique flavor profiles. Innovating in their existing brands, they introduce limited-edition items that cater to the artisanal preferences of consumers. Transparency and storytelling are important to these companies in order to create emotional connections and communicate key messages. Brands can improve their position in the market by supporting local distilleries. Craft spirits are poised to grow significantly, and large brands see opportunities to combine scale with artisanal characteristics that consumers want.
Sustainability focus sharpened
In response to the consumer and regulatory demands for more environmental and social responsibility, spirits brands adopt innovative sustainability practices. As we transition to renewable energies and aim for carbon neutral distilleries for example, advanced water management programs are being implemented to preserve this vital resource. Our Grain-to Glass initiative promotes responsible farming by promoting sustainable sourcing. The circular economy, which is also embraced by Johnnie Walker, can be seen in the reduction of waste, recycling packaging, and other initiatives. Spirits brands can enhance their sustainability by integrating practices like these. They also ensure long-term viability on a competitive marketplace.
Artificial Intelligence: a vital tool
AI is transforming the beverage industry by allowing brands to customize experiences at scale. Data analytics powered by AI allows companies such as ours to better understand the preferences of consumers, which enhances targeted marketing and products. Our ‘What’s Your Whisky’ product recommendation tool suggests specific products according to individual taste. AI can also enhance retail experience with virtual assistants and personalized recommendations. AI also supports the creation of custom cocktails and speeds up product development through analysis of consumer feedback. AI is essential to drive engagement and customer satisfaction, as personalized packaging enhances the experience of customers.
Priority to quality
Spirits industry continues to evolve in a variety of exciting ways. The shift to higher quality spirits is one of the most important trends in the current market. The trend is to pay more for products made by artisans that are special and authentic. Many brands are also working hard to minimize their impact on the environment through sustainable packaging and sourcing. A key trend is that health-conscious customers are choosing low or no alcohol options. The growth in online sales, digital engagement and other forms of technology is also changing the way brands interact with their consumers. The people are more adventurous and seek out unique spirits.
Comforts of home
In recent years, the way people drink spirits has evolved. While consumers used to drink mainly in restaurants or bars, this trend has now continued. RTD cocktail drinks are becoming increasingly popular. Another trend is health-conscious drinking – consumers are drinking less alcohol or in smaller quantities, while focusing more on quality. The online shopping of spirits is now more popular than ever, allowing people to explore niche brands or discover new choices from their homes.
New chapter in storytelling
Sustainability will play a bigger part in the future of spirits as more and more brands embrace eco-friendly practices. The industry will be shaped by technology, including AI and Blockchain. Some brands will likely continue to emphasize mindful consumption, and health trends are expected to persist. We can also expect brands to continue focusing on personalization and storytelling. As people grow more interested in global flavors, the demand for spirits of different regions will likely increase, giving consumers a chance to discover new tastes and customs.
Innovative drinking experiences
The spirits market is currently characterized by a growing demand for premium spirits and craft spirits. Consumers are looking to buy high-quality products that reflect their artisanal roots. Brands are also focusing on environmentally-friendly packaging and practices due to a growing interest in sustainability. As part of a broader trend towards wellness, low-alcohol spirits and non-alcoholic drinks have become increasingly popular. Consumers are exploring new flavors and ingredients. As well as an increased use of technology, we’re also seeing a rise in marketing and production. Blockchain for traceability is one example. Digital platforms are another. The trends are geared towards a more personalized, innovative and responsible drinking experience.
Consumption that is thoughtful and personalized
When choosing spirits, consumers are more concerned with quality and authenticity. Unique, exotic flavors as well as artisanal methods of production reflect a desire to have novel drinking experiences. The convenience of RTD cocktail and the increased use of digital platforms to engage with brands and purchase them also highlight the move towards more personalized and accessible consumption. This shift indicates a move towards more varied and thoughtful drinking habits.
Premiumization a key disruptor
Premiumization is the leading trend in the future of spirits, as consumers are increasingly looking for high-quality products. The market is growing for aged spirits and artisanal products. There is also a rising interest in innovative blends, new flavors and products, and this has pushed up the demand for non-traditional and unique ingredients, as well as craft spirits. Environmental concerns also encourage many businesses to implement more sustainable practices. This includes eco-friendly packaging, energy-efficient methods of production, and responsible ingredient sourcing. The demand for non-alcoholic and lower-alcohol alternatives will continue to rise, and e-commerce models and direct-to consumer business models are also becoming more important. This is due to the convenience and growth of digital marketing, as well as the convenience of shopping online.
