What does the future look like for the beverage industry in 2024?

As the beverage industry continues to navigate through waves of change, understanding the dynamics of market trends and consumer behavior has never been this important.

USA Trade Tasting hosted a webinar on February 16, 2024 with Kaleigh Theriault, Director of Thought Leadership at NielsenIQ 's Beverage Alcohol Vertical, which shed light on the future of the industry.

Here are some important takeaways from the webinar:

Four BevAl Trends for 2024

1. Shifting Shopper Behaviors : Characterised by lifestyle changes that emphasise convenience, wellness, and sustainability. This shift is evident in preferences for local products, moderation in consumption, non alcohol choices, and increased support for LGBTQ+ initiatives.
2. Psychology of Premiumization : Explores the distinction between premium brands and the premium experiences offered in the On Premise. Macroeconomic trends are also influencing the overall premiumization trend. Each major segment has premium products that tend to define the standards for shoppers.
3. Flavor Forward: Flavors are taking center stage in diverse categories like Ready to Drinks, Whiskey, Beer, Wine, Tequila, and more. Suppliers are adapting with a dynamic approach to flavor exploration with shorter product life cycles, going beyond a mere lineup of offerings to introducing new styles. On Premise will define trends in cocktails.
4. Dynamic Demographics : Evolving consumer demographics, particularly focusing on unique scenarios with Gen Z (21+) and the Graying of America with older consumers, are trending towards non alcohol consumption and Four BevAl moderation changes in drinking habits.

• Off Premise Dollar sales of Total Alcohol in 2023 was $89.8B (+1.1% vs 2022)

• Dollar sales continue to show slowing growth, while volume remains elusive across all major BevAl segments. Fragmentation of segments may be creating shopper fatigue.
• Ready to Drinks are driving significant overlap across Beer, Wine, and Spirits : RTD is fragmenting the at home consumer repertoire making loyalty harder to come by.

Shifting Shopping Behaviors

1. Convenience : Can or bottle options in the right pack size for the type of offering in the off premise and on premise ? Ease of purchasing and availability in the channels for friction-free shopping experience.
2. Wellness: Desire for transparency with inclusion of “free from” stated attributes ? Moderation in consumption ? Non Alcohol alternatives and mocktail options.
3. Sustainability: Sustainability and corporate responsibility ? 92% say sustainability is important when choosing a brand today ? Recyclability in product packaging. Some other trends like RTD Drinks and shift towards Agave spirits are also something to look out for in 2024.

If you are a beverage brand looking to grow your distribution, or looking to meet Buyers, Retailers and Suppliers, then Exhibit at the USA Trade Tasting 2024, happening in May in CHICAGO because USATT will bring sommeliers, buyers, bartenders, importers and distributors under one roof, providing you with networking and business opportunities.

Fill out this form if you would be interested in getting more information on Exhibiting and our team will get back to you.

Kaleigh Theriault will be speaking at USATT 2024, happening in CHICAGO on May 22-23 . Join us and get your conference Passes Here to get Live insights from her.