Alcoholic Beverage Industry Trends In 2019

2019 is proving to be a great year for the adult beverage industry. Whether you specialize in spirits, wine, or beer, important trends are shaping the way consumers interact with and purchase your product. The trends outlined below align with the U.S. market and also have a global impact.

10 Trends Affecting the Alcohol Industry

1. Craft beer will continue to see growth.

2018 brought positive growth for craft beer, with sales increasing by 5% and approximately seven thousand breweries in operation. The trend of brewery openings is expected to continue, with an additional thousand set to open in 2019. According to the C+R research group, there is a significant presence of craft breweries in the Midwest and the Pacific Northwest regions of the United States.

2. Online sales will continue to pick up the pace.

Lots of hurdles are present to sell alcohol online. Only five states allow direct shipping of spirits to consumers, and each site must confirm their visitors are old enough to drink. It didn’t stop adult beverage start-up Drizly from seeing a 61% increase in growth. Even with the restrictions, there is a market available where people are interested in purchasing alcohol online.

3. Top-shelf products are seeing a surge in sales.

The millennial generation is making a significant impact across all sectors of the adult beverage market. Instead of choosing calorie-dense, low-alcohol beer, millennials are opting to invest in more premium liquor options that boast superior ingredients. In fact, sales of super-premium spirits and high-end premium spirits experienced a growth of 6% to 7% last year.

4. Whiskey, tequila, brandy, and cognac are having their moment.

Even if you're not directly involved in the alcohol industry, it's impossible to overlook the whiskey trend that's making waves not only in America but globally. And it's not just whiskey leading the charge. Blended malt Scotch, in particular, has seen a remarkable 25% increase in sales. Experts attribute the popularity of these beverages to the growing cocktail culture, as well as the innovation in creating unique blends and products. Interestingly, flavored drinks like vanilla or salted caramel whiskey are also gaining traction.

5. Hemp and alcoholic beverage products are expected to find a way to merge.

Millennials consume less alcohol than the Baby Boomers or any generation before them. The downturn could be a result of the legalization of recreational pot in many states across the country. Cannabis is expected to surpass the $30 billion threshold in 2021. Alcohol companies who want to stay relevant might start infusing their beverages with the herb. Beers with hemp extract are already on shelves in certain states, and Constellation Brands has invested $200 million into a Canadian company to produce cannabis-infused beverages.

6. Craft distilleries are increasing across the country.

Craft distilleries are also experiencing significant growth, with a 19% increase seen since 2015. This sector is projected to continue growing at a rate of 15%-20% by 2022. If you're considering entering this market, it's important to note that to qualify as a “craft” distillery, you must produce and bottle your product on-site and limit your production to 750,000 gallons or less per year.

7. Larger companies want to follow the craft trend.

A projected 15%-20% growth by 2022 is quite significant, prompting many larger companies to join the craft trend. As long as they stay below the 750,000-gallon limit and are not owned by a global producer, they can be considered part of the "craft" category.

8. Women are impacting purchasing decisions.

To effectively reach consumers, marketers should prioritize appealing to women. Many beverage companies are adjusting their products to be more inclusive, recognizing the growing influence of women in purchase decisions. With women earning stable incomes, businesses across all sectors are adapting their advertising strategies. Johnnie Walker made headlines by replacing its iconic striding man with a woman named Jane.

“Important conversations about gender continue to be at the forefront of culture, and we strongly believe there is no better time than now to introduce our Jane Walker icon and contribute to pioneering organizations that share our mission,” said Stephanie Jacoby, vice president of Johnnie Walker, in an online statement.

9. Influencers are an essential aspect of marketing strategies.

Millennials are slowing their alcohol consumption, but they haven’t disappeared entirely. The best way to reach them is by establishing an online presence and participating in influencer marketing. A research group found that 18-35-year-olds participated in influencer marketing. Some brands like Jameson, Absolut, and Chivas Regal already experienced success from employing macro and micro-influencers.

10. More people drink at home than out in bars.

More and more people are choosing to enjoy beer, wine, and spirits in the comfort of their own homes rather than at a bar or restaurant. This trend, known as "drinking in," has become increasingly popular. With online retailers offering affordable shipping options and brick-and-mortar stores selling at competitive prices, the convenience of consuming alcohol at home is on the rise.

Alcohol Industry Experts

No matter where you are in the alcohol industry, reaching out to seasoned professionals like Brindiamo Group can be a game-changer. With years of experience and expertise across various sectors, our team is here to assist you with everything from sourcing to acquisition. You can rely on us for guidance every step of the way.