Maybe you have not been observing, but over the last two decades, the beverage industry has changed incredibly. It’s almost unrecognizable from what it used to be. But that’s the reality of the modern world, isn’t it? The dynamic of consumer trends in this industry is so rapid, it’s hard to hold on to one trend too long.
After all, new generations of drinkers are flooding the market each year. There’s still a silver lining in the constant shift in tastes and preferences, though. Producers have the opportunity to rebrand, reshape, and reinvest their brand identity to keep the revenue flowing in.
Of course, AI technology and the digital world in general are paving the way for innovation and marketing. But there’s no denying that consumers are the true movers of this market; what the buyer wants is what stands. Here are the top trends that are easily going to be a solid mainstay in the beverage industry shortly.
Moderation Strategies
If you have been practising a more reserved approach toward your alcohol intake, you can brag about the realisation that you’re a part of something big. Wait, what if I told you that you’re probably among the pioneers of one trend that’s likely going to be around for a while?
Susie Goldspink, Senior Insights Manager at RTDS & No/Low Alcohol, notes that this trend cuts across all ages, regions, and demographics. Moderation is evolving into a mainstream cultural shift rather than a niche preference. So, what are the key strategies people use to moderate?
• Temporary Abstinence
This is one of the trends that is gaining momentum quite fast; more young consumers are jumping in on this one. Take, for instance, India, where a whopping 72% of the affluent drinkers in up to 10 major cities stated that they have practised periodic abstinence.
The rise of the “sober curious” movement, especially among Gen Z and Millennials, reflects a broader cultural shift: drinking less, but better, and seeking out alternatives that allow for socialising without the negative effects of alcohol.
And not just in India, this trend is also gaining significant momentum across the globe. It is also happening in Mexico, South Africa, and Brazil.
• Lighter Consumption
Contrary to a couple of decades ago, the beverage industry is becoming increasingly inundated with more “light” drinkers. This comes as a complete overhaul with consumers going from being binge, heavy drinkers to observing less and less frequently and intensity.
Of all the 15 key markets that IWSR’s Bevtrac consumer research covers, this category makes up the largest chunk of the three categories: light, medium, and heavy drinkers. A study by Gallup has confirmed this decline in alcohol consumption, with young adults drinking less than the average rate two decades ago.
Up to 59% of young Americans within the 18-34 years bracket consumed alcohol between 2021 and 2024. This marks a significant decrease from 70 per cent for the same age group in the period between 2001 and 2003.
• Single-Category Occasions
Besides cutting back on overall consumption, consumers are also veering towards sticking to a single beverage type on any given occasion. This has also played an essential role in further reducing the amount of drink one takes as well.
Rapidly, this trend has been adopted, and the average number of beverage categories drinkers consumed per occasion went from 2.4 in 2023 to 1.8 in 2024. And that is across all 15 Bevtrac markets.
CBD-Infused Beverage
If you haven’t sipped CBD or THC drinks, you’re missing out on the next big thing. Albeit having been slow to gain traction in the market, some brands such as LittleRick have slingshot this trend right into the market.
Consumers from all demographics can’t help but treat themselves to CBD drinks, giving the sector exponential growth. So much so that the sector’s current value stands at a staggering $1.16 billion.
And that’s just the start, the sector is projected to see a CAGR growth of 19.2% over the next five years. Even the current consumer favourite, kombucha (at a CAGR of 15.6%), is no match for the rise of CBD drinks’ rise to glory.
The Rise of Non-Alcoholic Beverages
Popularly known as NA, non-alcoholic (as well as low alcohol beverages) are picking up pace in claiming a share of the market. New research suggests that the non-alcoholic beverages market value will be at a whopping $3.4 trillion by 2034.
This market offers a broad selection of products—soft drinks, teas, juices, coffees, bottled water, and functional beverages—with its expansion driven by innovations like plant-based waters and beverages promoting health benefits.
Unsweetened Options
The rise of heightened health consciousness has seen a tank in the consumption of sugar-sweetened drinks. More people are now embracing zero-sugar and naturally sweetened drinks.
Studies have shown that beverages with high sugar content have been contributing significantly to the increase in obesity. This, in turn, has led to a rise in taxes on carbonated drinks in various jurisdictions. Investors, on the other hand, are responding to this shift by veering more towards the production of low- or even zero-sugar beverages instead.
Choose Your Taste
Whether you’re leaning towards moderate drinking, CBD-infused products, such as drinks, unsweetened options, or non-alcoholic drinks, there’s a trend for everyone.
