The beverage alcohol (BevAl) landscape, similar to other markets, has undergone significant transformations, reflecting shifting consumer preferences and evolving societal attitudes. Marked by growing diversity, innovation, and a heightened awareness of health, sustainability and ethical considerations, the industry in 2024 is adapting to meet the demands of an increasingly discerning consumer base. A new insights report from NielsenIQ reveals the four trends that are shaping the sector this year.
Values-driven shoppers
The past year has seen a notable shift in what BevAl consumers prioritize, most notably aligning their purchase decisions with their values. This ranged from supporting local products and LGBTQ+ initiatives to embracing moderation and opting for non-alcoholic alternatives. This year, BevAl brands will highlight convenience, wellness and sustainability. In fact, NIQ reports that a staggering 92% of consumers share that when picking a brand, sustainability is important to them. The interest in “wellness” and functional beverages, particularly non-alcoholic options, is creating an additional shift.
Splurging on premium
While 2023 was certainly filled with financial instability, alcohol premiumization remained important to consumers: 31% of them prefer quality over quantity and are willing to spend on aspirational products and small luxury splurges like alcohol. NIQ predicts an “increasing interest in craft and locally created premium brands that have a story to relate to within social networks.”
Flavour is the star
Flavours are emerging as the focal point across a range of categories, including ready-to-drink, whiskey, beer, wine and tequila. Brands are responding with a strategy for flavour exploration, characterized by shorter product lifecycles and the introduction of entirely new styles. More innovation is to be expected in 2024, especially in products that have their own unique flavour approaches, like Mezcal.
