The beverage landscape is evolving, with today's drinkers leading the way. The emerging Millennial generation is not only shaping the economy and consumer trends but also making a significant impact on the adult beverage industry. As we near the end of the first quarter of 2018, let's explore some of the exciting trends that will continue to unfold throughout the year.
All around the globe, breweries and distilleries are opening brick-and-mortar tasting rooms and satellite taprooms to bring their brands closer to consumers. Whether at airports or tourist attractions, breweries are taking advantage of state laws that allow for these unique experiences. This trend is a response to suppliers of raw materials aiming to educate the public about the beer-making process, in hopes that informed drinkers will request beers made with these specific ingredients. The feedback has been positive, leading many brewers to opt for setting up these tasting rooms with a retail-based business model rather than traditional distribution methods.
We are currently in the age of information, and consumerism has undergone significant changes over the years. Businesses are now expected to go beyond providing products and create entire experiences for their customers. This trend is evident in grocery stores offering cooking classes and in-store bars to enhance customer relationships. Similarly, the adult beverage sector is embracing this idea by offering patrons unique experiences such as virtual reality, escape rooms, indoor slides, ball pits, and even an ice room.
According to a recent report, domestic beers have seen a dip in sales but are still proving to outperform imports. The decrease in sales for domestic brews has led to a direct increase in the popularity of craft beers. Specifically, IPAs have seen a 15% growth and are projected to drive much of the craft beer industry's expansion in 2018. This surge in demand can be attributed to a new trend in beer consumption, where breweries are offering unfiltered beers. While clarity was once a defining characteristic of alcoholic beverages, many companies are now intentionally producing cloudy lines. Whether it's beer or vodka, distillers believe that by skipping the filtration process, customers can experience the full flavor and complexity of the spirit or beer.
As we mentioned earlier, we are currently in an era where information is readily available, and consumers are not only seeking experiences but also yearning for more details about what they consume. The shift in food consumption habits has led to many restaurants and eateries providing information about the ingredients in their dishes, following trends like "farm-to-table," calorie listings, and organic labels. This trend is expected to heavily influence the adult beverage industry in 2018, prompting brewers and distillers to prioritize ethically sourced ingredients. While labels are starting to feature claims like "no sugar" or "nothing added," many are exploring ways to innovate in the market without compromising beverage quality. One common approach is enhancing texture and introducing carbonation to elevate the appeal of cocktails.
Millennials are embracing a more moderate approach to alcohol consumption, leading to a shift in the types of beverages they choose. Non-alcoholic beers, with Seedlip at the forefront, are gaining popularity, while lower ABV alternatives like sherry, vermouth, and port are displacing higher ABV spirits like vodka and gin. Fortified wines, once overlooked, are now being appreciated by this new generation of consumers who are mindful of factors like calories and nutritional value.
The adult beverage industry has long been committed to finding ways to enhance waste management practices for environmental reasons. In 2018, the focus on waste reduction is expected to intensify, with brewers and distillers engaging in more discussions on the topic. With alarming headlines about plastic pollution in the oceans, water scarcity, and climate change, consumers are increasingly showing concern for the environment. When discussing the beverage trends for 2018, nothing will have more of an impact than waste management.
Brindiamo Group helps adult beverage companies through strategic advisory. Let's work together to develop a strategy that enhances your products and aligns your business model with these exciting new adult beverage trends. For more information, contact us today.