Alcohol & Hard Seltzer Trends
To obtain an overview of trends in the Alcohol industry as well as the hard seltzer segment of the alcohol industry.
- Lower alcohol and "healthy" versions of spirits and cocktails are expected to gain traction in 2020. This is driven by an even larger wellness trend. Alcohol options with lower ABV combined with low calories and less sugar and carbs will target consumers that are health conscious.
- Premium and super premium alcohols are rising in demand. According to Scott Moore, SVP national accounts off premise at Southern Glazer’s Wine & Spirits, "“It’s an affordable luxury. People want to treat themselves." In fact, he reports that spirits priced $25, including whiskey, vodka, and tequila, have increased in sales by 13.2% over the last 12 months.
- Millennials are driving a rise in RTD alcoholic beverages, specifically cocktails and long drinks. As most RTD beverages are lower in ABV, they have gained the acceptance of the millennial customer base as well as the health conscious consumers. The RTD alcoholilc beverage market is expected to growh at CAGR 5.4% through 2027.
Hard Seltzer Trends
- According to Nielsen, the number of hard seltzer producers is expected to double in the next few years with "big brewers, mainstream brands, craft brewers and spirits companies all getting in the game."
- The increased competition in the hard seltzer market is expected to result in producers seeking to differentiate themselves which will manifest in unique flavors, higher ABV, and healthy ingredients.
- Seltzer flavors expected to trend into 2020 include: botanicals such as basil, cilantro, lavender, and elderflower; exotic citrus such as dragon fruit, coconut, and prickly pear; and ginger.
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