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At this point, if you haven’t come across a noticeably ‘stacked’ beverage fridge at your local grocery store, liquor store or bodega, you may be living under a rock — no offense.
From adaptogenic beverages to THC-infused powders to high-proof whiskey offerings, it couldn’t be a more exciting time for consumers when it comes to the expansive set of beverage and beverage-adjacent offerings now on the market.
With this expansive set of options now available to the modern-day consumer, the question becomes — what does this mean for the beverage alcohol industry? Up until now, it has enjoyed decades of generally consistent sales and interest, but what will happen as more brands enter the market daily, all of which are slowly chipping away at market share?
As reported by ISWR, Gen Z and Millennials (LDA to age 42) are significantly more open to discovering new products compared with those over the age of 55.
In addition to consumers’ general interest in new and exciting (beverage) products, there are additional notable headwinds facing the booze industry, some of which include:
An uptick in premiumization — Drinking less but better (IWSR reports); a separate Gallup Poll survey also indicates that 62% of American adults under age 35 said they drink, down from 72% a decade ago.
Interest in non-alcoholic offerings is poised to grow 30% annually in the upcoming years versus 6% for general conventional spirits, according to the market research company Euromonitor.
Weight loss drugs such as Ozempic have been shown to reduce interest in beverage alcohol cravings.
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Interest in additional alternative forms of ways to relax and unwind, some of which include THC, CBD and even “magical mushrooms.”
Within my own life, since having written about my own sober curious journey in 2022, I have continued on with creating a more mindful relationship with drinking in which I still enjoy a nice glass of champagne on the weekends while now incorporating throughout the week non-alcoholic “fake Negronis” and low-dose THC and CBD gummies. I couldn’t be more personally grateful for the expanded optionality available, making it easier than ever before to “map my own path” when it comes to what I want to consume and when.
So where does this leave us?
Well, I wholeheartedly believe that this isn’t an all-or-nothing game. Consumers will not stop enjoying a crisp cold beer while watching football games or toasting with a glass of bubbles at wedding celebrations, but I do think people are getting smarter, more mindful and more aware of all that’s out there.
Given the overall competitive nature of the wider beverage industry, I would suggest taking a step back either pre-launch or once in the market, to think about what is your unique “so what” or unique value proposition to ensure that you are crystal clear as to how you are in fact different from the competition.
Double down on what’s working — don’t work to expand your product offerings or scale into new markets too fast, take the inch-wide, mile-deep approach. Create a toolkit in a few key markets or with 1-2 core products and slowly scale from there to ensure proof of concept.
Whether you’re opting for a strawberry microdose gummy bear or a refreshing Aperol spritz, the choice is yours — and now there are more than enough options to choose from.
