Per Austria Juice, sales of craft beer in 2018 rose by 5 percent. Tequila-based RTDs saw the highest growth at 138 percent, followed by rum-based drinks at 132 percent. For the past three years, hard seltzer has been all the rage with brands like Pepsi and Coca-Cola entering the hard seltzer market through partnerships with Mountain Dew and Topo Chico1. Tesco estimated around a quarter of UK adults would drink only no- and low-alcohol drinks at Christmas, and said sales of NoLo spirits soared by 106% since the beginning of 2021. Indeed, this transition is reflected in NoLo sales throughout the year. Eco-Friendly Wines - Many wineries are making great progress in sustainability, but not doing a very good job telling consumers about it. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". It is still a very small piece of the total liquor category and about half the size of its hard seltzer counterpart, she says, so we believe there is still room for continued growth., She also predicts that consumer education will be a key driver for the RTD category. Sales of the spirit are also remarkably high in other corners of the globe, with India standing out as one of the more voracious consumers of the aforementioned liquor. You cant read up on the latest goings-on inside the alcoholic beverage industry without hearing something about the increasing popularity of ready-to-drink (RTD) options. Drinks Business Asia edition? Indeed, well-established brands are joining the fold, creating alcohol-free alternatives to their popular offerings. By clicking Accept All, you consent to the use of ALL the cookies. This cookie is set by GDPR Cookie Consent plugin. The suppliers sales of no- and low- products was up 70% in 2020, and up a further 35% in 2021. Prized for its distinct flavor that manages to bring together some remarkably sweet notes, earthy tastes, and even hints of spice, whisky is a staple of many household liquor cabinets.

Thats a five fold increase in people looking at and reading those reviews. They offer controlled ABVs and consistently taste delicious..

By 2023, whisky-related revenues could spill over $20 million. According to the 2021 Wine Market Council Benchmark Segmentation Survey of 5,724 American consumers, only 32% of adult Americans drink wine, down from a previous high of 35%. With 58% globally drinking more non-alcoholic and low-ABV cocktails than a year ago, according to the 2022 Bacardi Cocktail Trends Report, demand for premium NoLo options are expected to continue growing.

The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. In recent years, a popular alcoholic drink from Asia is also showing that it has fans all over the world. 4 on Drizlys top-selling SKUs list. Thats powerful growth and increasing people, and we genuinely take some credit, Piper said. Without further ado, lets take a closer look at some of the more interesting developments, starting with the more general trends impacting sales. As consumers embrace dry January, new research reveals that no- and low-alcohol drinks continue to grow in popularity. With more and more Americans concerned about the environment, there is opportunity for the wine industry to promote alternative packaging as a way to decrease their carbon footprint, and meet consumer needs.

According to the study, the current demographics of American wine consumers are 59% female and 41% men. The cookies is used to store the user consent for the cookies in the category "Necessary". In 2021, Europe showed an 8.5% decrease in sales for still wine and a 7% decrease in beer sales3. The alcoholic beverage industry is not particularly known for being stagnant. Younger consumers enjoying Sparkling Wine. New, strictly NoLo brands are also trying their luck with consumers, and fairing well. It is useful to note, however, that other research on wine consumption shows that many people in their 20s do not drink much wine, but wait until their 30s to adopt it as part of their lifestyle. Sake is no longer just a popular drink in Japan, 6. If youve noticed that these RTD alcoholic beverages have become more prevalent, theres a good reason for that. Its taken time, but it has started to do that he added. Select the resources you would like to download. Full List of All 32 Nations.. Alcohol Change UKs Dry January campaign began as a public health initiative in 2012. Despite representing a small share of overall sales on Drizly, the RTD category is one for retailers to invest in. However, as we saw with hard seltzer and as we have already begun to see in the RTD category with High Noon, Cutwater, and On the Rocks, there will likely be three or four brands that dominate sales nationwide.. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. Alcohol consumers are still purchasing their tried-and-true, single-serve beer and easy to share wine options, but there has been a shift. By Partnering With The Old Gays, Bev Is Hoping To Broaden Their Reach And Spread Their Message. The increased number and variety of RTD options on the market has fueled the categorys growth, which has inspired even more brands to launch RTD products. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. These cookies track visitors across websites and collect information to provide customized ads. Atopia, a new 0.5% ABV spirit was created by William Grant & Sons master distiller Lesley Gracie. Few other categories saw more stratospheric growth during Covid-19 lockdowns than ready-to-drink (RTD) cocktails, driven by consumers desire for high-quality, easy-to-enjoy, highly portable cocktails. The best-selling cocktail of 2019 so far is the Old Fashioned, 5. Necessary cookies are absolutely essential for the website to function properly. We also use third-party cookies that help us analyze and understand how you use this website. And thats, that cant just all be the same person. Hubbard, Lauren. More recent numbers pertaining to the popularity of online sales of alcoholic beverages have yet to be made available. No ingredients, no prep or clean-up.

2020 may have accelerated the RTD cocktail categorys growth, but producers have been laying a foundation for this success for several years, she says. When restaurants and bars shuttered in March 2020, consumers brought on-premise cocktail culture home. Perhaps because of that easy access to information, more people are now aware of high-end spirits, and they have also displayed a willingness to spend on those sought-after products. On top of that, around 8,000 craft breweries are expected to be operating inside the United States by the end of this year. Whisky is not the only alcoholic beverage that is making waves in terms of sales. As a finishing flourish, bartenders may add some citrus rind to the cocktail to give it a hint of freshness and acidity. This cookie is set by GDPR Cookie Consent plugin. Despite aisles flooding with new hard seltzer brands, pre-mixed cocktails are taking charge with brands like Cutwater and Tip Top in liquor and grocery stores in North America.2 The NielsenIQ Global Snapshot report shows that this trend isnt specific to North America, but rather solidifies the footprint of pre-mixed alcoholic beverages in other global markets, with Europe showing an 11.7% increase in sales for pre-mixed beverages from 2020 to 20213.

According to year-end Nielsen scan data in Wine Business Monthly (March 2022), Sipsource, and the Nielsen IQ Beverage Alcohol Review for 2021, the following wine categories are performing well, with a good chance of continued growth. According to Drinks International, the Old Fashioned cocktail is the best-seller, and its being sold in 30 percent of bars. With the FIFA World Cup in November and December 2022, the demand for alcoholic beverages will greatly increase within the 7 European countries who have already qualified5. Via FoodBev Media, the alcoholic beverage market is expected to continue growing at a CAGR (compound annual growth rate) of over 4 percent over the next 6 years. Enotria & Coes historic sales data of no- and low- products does not suggest that Dry January is necessarily the dominant consumption period for this category. Category on the Rise: Beverages from East Asia. The price mark-up on wine in on-premise is usually around double the retail store price mainly because restaurants and bars need to recoup their costs in service, glassware, and other over-head costs. Companies such as Drizly and Thirstie are already starting to reap huge rewards from selling alcohol online. The latest to tap into the trend is Italian company Martini and Rossi. The alcohol industry is not without its challenges. As impressive as that already is, the numbers could grow even larger in the coming years.

But as consumers have returned to restaurants and bars, demand for RTD cocktails hasnt waned; in fact, it has continued to grow rapidly. Going back to Nielsen, the data firm points out that there are now 22 wine brands that offer their products in cans. For many people thats when it really gets going, because thats when they start taking big decisions.. As many as 386 different wine options can now be sipped from a can. Wine lovers have also not shied away from the canned variants as sales figures have skyrocketed to $81 million after finishing at $46 million for last year. The IWSR predicts that the RTD category will grow at an 11.5 percent compound annual rate between 2019 and 2024. When Can More Carbon Dioxide Be A Good Thing?

Alcohol Change UK also provides reviews of NoLo alternatives on its website. Though the RTD cocktail category was already growing, the onset of Covid-19 set the RTD cocktail category on fire. Drinks International even points out that this is the fifth year in a row in which the aforementioned cocktail has emerged as the top seller. The cookie is used to store the user consent for the cookies in the category "Other. All Rights Reserved / Sitemap, We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Millennials hold the largest share of RTD purchases on Drizly (62 percent of share), followed by Gen X (23 percent). The popularity of craft beer has reached the point where even the larger players in the alcoholic beverage industry are expected to get in on the action at some point. If you disable this cookie, we will not be able to save your preferences. Registered in England and Wales No. If youre into alcoholic drinks in particular and you want to know the best options available, you can quickly look them up online. According to Statista, revenues in the United States whisky sector are at $18.126 million for this year. Once a rarity in the global beverage alcohol market, no- and low-alcohol drinks grew by more than 6% in volume in 10 key global markets in 2021, and now command a 3.5% volume share of the industry, according to a new study published by IWSR Drinks Market Analysis. This is also nothing new. This website uses cookies to improve your experience while you navigate through the website. Back in 2007, the number of craft breweries stood at just over 1,511. This means that every time you visit this website you will need to enable or disable cookies again. - London - United Kingdom. Residents of Asian nations have long known about the merits of sake, and it seems like people from other parts of the globe are wising up to them too. The site also noted that 2018 was the first year in which international sales of Japanese sake surpassed the 20 billion mark. Doering, Christopher. According to Jon Moramarco, Editor & Partner with Gomberg & Fredrikson, as well as Managing Partner for bw166 both well-known wine research firms The wine category performed well in 2021, but not great. A special thank you to all of the excellent wine research firms and people who shared their data with me for this article: Gomberg-Fredrickson, bw166, NielsonIQ, SipSource, Wine Marketing Council, IWSR, Wine Business Monthly, Wines Vines Analytics and Danny Brager Consulting. Significant changes and surprising trends emerge every year, and 2022 is no exception. I think we will continue to see lots of innovation in the RTD category from both start-up brands as well as existing brands looking to find a niche in the increasingly crowded market, says Paquette. Craft beer has done that for many people, which is why it should not come as a surprise that the beverage has become immensely popular. RTDs have evolved from basic, low-ABV drinks to true, high-proof cocktails, says Mollie Cook, the director of marketing for Mollys Spirits in Denver. Analytical cookies are used to understand how visitors interact with the website. Opinions expressed by Forbes Contributors are their own. A look at 2021 demographics of U.S. wine consumers also highlights the need for the wine industry to reach out to new consumers. Pre-mixed cocktails are taking over the shelves in North America. Consumers are reaching for pre-mix alcoholic drinks across the world more than ever due to the increase in assortment but also the convenience of pre-mixed cocktails. According to IRI, premixed cocktails and spirits-based seltzers accounted for just over $1 billion in off-premise sales over the 52 weeks ending November 28, 2021. Despite dire warnings earlier in the year that U.S. wine sales had decreased in 2021, the recently released Gomberg & Fredrikson report, based on government tax paid data, shows wine dollar sales up a surprising 16.8% in 2021 over 2020. 1 spot as the top-selling drink on-premise in the United States, she says, and tequila has been one of the fastest-growing spirits in the last few years.. Currently, 70% of U.S. wine drinkers are White-non Hispanic, while 13% are Hispanic, 12% are Black, and 4% are Asian. Sainsburys said it had seen a 91% year-on-year increase, and sales in the category overall grew by 24% last year compared to 2020. While RTDs can range from full-strength cocktails, like Austin Cocktails cans, to lower-ABV options that can compete with hard seltzers, premiumization has resulted in a new wave of products that boast less sugar and more ingredient transparency. Selling alcohol online is becoming more popular, 3. Bubbles Persist Sparkling wine continues to show growth, especially Champagne & Prosecco, with a 27.9% volume increase in 2021, according to Gomberg-Fredrikson data. It is especially popular with younger consumers, making it a good on-ramp to welcome new consumers to the wine category.

By contrast, Enotria & Coes sales of still wine in 2021 were 73% of comparable sales in 2019, as the pandemic continues to create challenges for the category as a whole. The drink in question is none other than Japanese sake. According to NielsenIQ, year-over-year off-premise dollar sales increased 156 percent for spirits-based hard seltzers for the 52-week period ending October 2, 2021, and sales for RTD cocktails grew 126 percent. Ready-to-drink cocktails are poised for strong growth, driven by flavor innovation and a shift away from hard seltzer. Spiritless Launches Non-Alcoholic Canned Cocktails, Diaspora Co. Mints $2.1 Million In Fresh Financing To Build An Equitable Spice Trade, Food Waste Costs U.S. Taxpayers Billions Of Dollars A Year, 2021 Wine Market Council Benchmark Segmentation Survey. Ireland, Norway, and the United Kingdom are among the European countries that saw double-digit percentage decreases in beer sales from 2020 to 2021. A more concerning portion of the survey illustrates that not much progress has been made by the U.S. wine industry in encouraging multi-cultural consumers to enter the wine category. The market is flooded with even more options in the near future would hardly be a surprise. A headline increase of 16.8% in consumer spending sounds good, but this was primarily driven by channel shift from off-premise (retail stores) to on-premise (restaurants and bars).

Notably, these RTD alcoholic beverages have actually been around for a long time, but it seems as though they are peaking in popularity right at this moment. No-Low Alcohol Wines - As Americans become more focused on Health and Wellness, they are seeking products that are Better for Me. No and low alcohol wines fit this category, as well as natural wines and those using these types of descriptors: no taste additives, gluten free, low carb, vegan friendly, sulfite free, low calorie, low alcohol, no sugar added, organic, paleo friendly, plant-based, clean, etc. NielsenIQ reported that the non-alcoholic wine category grew 27% in volume in 2021, and IWSR forecasts show that across 10 key markets, the no-and low-alcohol category as a whole will grow by 8% volume CAGR (2021-2025).

The brand has held the No. With even more brands and SKUs on the market, as demand for hard seltzer begins to level off, RTDs are poised to have a bright future. Smaller Sizes and Alternative Packaging Related to the wine cocktail craze, Ready to Drink (RTD) single servings and wine in smaller containers, especially 375 ml glass bottles along with tetra and 187ml plastic bottles showed growth in 2022. Americans want convenience, and they also want to experiment with new flavors and styles. Big Reds $15+ - Cabernet Sauvignon, Red Blends and Merlot showed double digit volume growth in 2021 in the $15+ price range, especially during the last quarter of 2021, according to NielsenIQ and SipSource. So obviously decreasing Covid concerns had a part to play in this increase in wine sales, as many consumers felt more confident to return to restaurants, bars and other on-premise establishments in 2021. Looking at the figures for 2021, Q1 accounted for 7% of the companys no- and low- sales in that year, with Q2 accounting for 21%, Q3 for 31% and Q4 for 40%. Todays RTD cocktails have come a long way from decades-old predecessors like wine coolers and malt-based hard lemonades. 03606414. 2022 Nielsen Consumer LLC. This trend is expected to continue further into 2022.

Whether or not they will succeed in their forays into producing craft beer is another matter altogether. You may opt-out by. Still, it wasnt too long ago when online alcohol sales reached $1.7 billion. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. They are great for people who are willing to socialize [but want to] minimize contact by doing so outdoors, says Jill Burns, a co-founder of Austin Cocktails. According to Drizlys 2021 Retail Report, 60 percent of retailers surveyed plan to stock more RTD cocktails next year. It seems Americans are in love with bubbles, with predicted continual growth.

Coca-Cola and Pepsico Wade into Booze amid an Uncertain Future. Food Dive, 14 Oct. 2021. This has allowed the brand to capture share of hard seltzer buyers, says Liz Paquette, Drizlys head of consumer insights, and carry over into the RTD category.. The drinks business investigates. As of 2021 year-to-date, there are over 450 RTD brands on Drizly a 45 percent increase over the previous year, and a whopping 170 percent increase over 2019.

From gin and tonics to moscow mules, consumers are changing how they buy in North America, but what about Europe? Not too long ago, if you wanted to pair a cocktail with your meal, youd have to add a full list of ingredients to your grocery list. This is also where it becomes important to point out that whisky is popular, not just in the United States. Enter: pre-mixed cocktails, the new craze hitting North America and Europe creating opportunities for liquor brands to try their hand at single serve pre-mixed alcoholic beverages. Its a good thing that more people know about those premium products, although their fans may want to stock up just in case the demand gets too high. The styles and brands with origins in Japan, South Korea, and China that are on the rise. Its now up to the industry to meet that with supply. The idea that alcoholic drinks can be purchased online and even be delivered to your doorstep may seem like a foreign concept to many, but industry insiders already know that those things are becoming common. So, who are the biggest fans of sake outside of Japan?

The cookie is used to store the user consent for the cookies in the category "Performance". The alcoholic beverage industry is not slowing down just yet, 2. You may unsubscribe from these communications at any time. No. Whisky is already the drink of choice for many fans of alcoholic beverages all over the country. These cookies will be stored in your browser only with your consent. This website uses cookies so that we can provide you with the best user experience possible. You can find out more about which cookies we are using or switch them off in settings. And with a predicted volume growth of 8% CAGR by 2025, the trend shows no signs of slowing. While this resulted in a purchasing uptick in the ingredients to recreate their favorite restaurant cocktails, it was also a boon for canned, single-serve RTDs. Considering the popularity of whisky, it should probably come as no surprise that the top-selling cocktail of the year at this point is one that prominently features the aforementioned spirit. High-end spirits remain highly coveted, 7. Martini and Rossi has introduced two non-alcoholic vermouths, Floreale and Vibrante, in a bid to appeal to mindful drinkers. Moving forward, drinking wine from a can could turn out to be a more common practice. Due in large part to the pervasive nature of the internet, you can learn just about anything regarding almost every possible field of interest. Download the NielsenIQ Global Snapshot to learn more about beer, still wine, and pre-mix purchases in 2021. Whisky is then often poured into the mixture, although there are some instances wherein brandy may be used as a substitute. The Forbes Worlds Most Influential CMOs List: 2022, Here Are The Five Best Tequilas In The World Right Now. It looks like you're in Asia, would you like to be redirected to the The cookie is used to store the user consent for the cookies in the category "Analytics". 2022 Forbes Media LLC. Per the Brindiamo Group, sales of the super-premium and high-end premium spirits rose by 6 and 7 percent respectively in 2018. Much of the brands success has been driven by the positioning of High Noons drinks within the hard seltzer category; though High Noon is vodka-based, therefore categorizing it as a RTD cocktail, it is marketed as a vodka-based hard seltzer.

But opting out of some of these cookies may affect your browsing experience. This page does not exist in [x], feel free to read the page you are currently on or go to the [x] homepage. While the RTD cocktail category remains small on Drizly, it has made significant gains over previous years. With more and more people becoming health-conscious, alcoholic drinks are increasingly being dropped. You also have the option to opt-out of these cookies. Total wine sales, including domestic and imported wine were $78.4 billion, compared to the previous years figure of $67.3 billion. For more information, check out our privacy policy.

These figures were based on not only domestic and imported on and off premise sales, but also include direct to consumer shipments from wineries and U.S. winery cellar door sales. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Canned wine performed well in the summer, but lost traction towards year end. Whisky is becoming an increasingly popular alcoholic beverage, 4. Consumer health and wellness continues to drive FMCG growth in Asia Pacific, The state of FMCG in Asia Pacific and the keys to winning, How to succeed in the shifting Australian retail and consumer landscape, Consumers focus on sustainable pet ownership, 2021 Global Snapshot of EU Still wine, pre-mix, and beer, https://www.fooddive.com/news/coca-cola-and-pepsico-wade-into-booze-amid-an-uncertain-future/606490/, https://www.townandcountrymag.com/leisure/drinks/g35992615/best-canned-cocktails/, https://www.metalpackagingeurope.org/article/special-delivery-how-cans-are-taking-over-market-specialist-drinks#smooth-scroll-top, https://www.sportingnews.com/us/soccer/news/fifa-world-cup-which-teams-have-qualified/86nbyru9dkh41ii7s800gjwav. Yet the reasons behind these increases suggest the wine industry still needs to focus on being more innovative and reaching out to new wine consumers. 1. Americans seem to be gravitating more towards zippy refreshing white wines, and this trend is expected to continue in 2022. 1 position on Drizlys list of top-selling RTD brands for two years running, and in 2021, it commanded seven of the top 10 spots among the categorys top-selling SKUs. With growing share and a high average price point, expect strong Japanese whisky interest through the holiday season and beyond, Rye whiskey has a small, but growing, share of overall whiskey sales and ahead of its strongest season of the year.