Current Trends in Alcoholic Beverage Market

Food and beverage are a very comprehensive industry which consists of wide variety of foods and drinks. In 2017, a vast number of probabilities are foreseen for the development of food and beverage industry. But to lead the market is altogether a different fight. Having a good conception of things and one must efficiently understand the changing scenario of the market like evolving consumer demand, considering varied preferences, advancement in technological strategies and being mindful of the acquisition approach would grab a steady place in this heavily competitive market. Development in the consumer requirement, increased safety in food, mergers and acquisition, and food endurability are some of the latest trends in food and beverage industry.

Change in the geography and spending habits makes it essential for the beverage industry players to conceptualize and subsidize on a major consumer intuitiveness that identifies the evolving trends. Evergreen Packaging a global giant in making packaging solutions based on fiber, has endeavor with EcoFocus globally to analyze four major trends that are anticipated to impact the beverage industry which is millennial motivators, the new value-add that is clean + fresh=healthy, clean packaging gaining momentum, and naturally functional beverages.

The modernized drinkers today are transforming. Due to which comes exclusive trends in the alcoholic beverage market that have been distressful, at the same time equipped with opportunities for restaurants and bars. Today customers want to have in-depth knowledge of the history and the manufacturing methods of what they drink. They also enjoy exploring amid varied styles and categories. Due to this, they have become less loyal to any particular brand than ever before. Drinkers experienced a little of everything in the previous year, resulting the alcoholic trends to cross varied categories. A few categories were highlighted indeed in 2015 for having excellent conduct in the market. Craft beer, in particular, the market growth last year was 14.1% which is 276.5 million. Whiskey market evolved up to 4.6% that is to 52.8 million.

It was not surprising to known since previous years there has been an outbreak of dynamic micro distilleries and breweries commencing amid the country. Modernized drinkers have advanced a distinct, astute palate for craft beer and brown spirits. However, two questions remain for craft beer that is to what extent the category would expand, and is it in or impending a bubble. Whatsoever the answer maybe, the boost in the craft beer market has aided to develop an interest in other two blooming categories hard ciders and hard sodas which evolved up to 9.6% and 6.7% respectively.

After craft beer and whiskey, the retailers were anxious to evolve space on the shelf for wine. Aiding to sustain the wine market has been the current rise of gleaming and superior bottles. Last year white spirits were mixed bags. Vodka market was comparatively low at 1.1%, though rum market declined up to 1.5% to almost 24.7 million. But the tequila market developed with 4.4% in 2015. Customer see tequila cost-friendly shot and more as an elegant drink compared to whiskey. Continuously, superior tequila reaches the market in a large number. To this, here are the latest trend in the alcoholic beverage market.

Whiskey transforms and evolve

Bourbon is loved by Millenniums, and are now consuming scotch and rye. Whether as cocktails or sippers, this dynamic and evolving acknowledgment for brown spirits has aided kick-start to America’s whiskey recovery. The two dynamic trends have estimated to evolve at a constant speed. The demand of flavored whiskeys has evolved rapidly. This creative, industry-altering spirit developed 65% in previous year sales. Irish whiskey sale hiked up to 8.2% in 2015. The main factor for this market growth was broad demographic of customers. Compared to any other segment among the brown spirits, women are counted as the loyal drinkers. Almost 40% of the consumer of Irish whiskey are female. The key reason is that spirit being smoother and sweeter than most of the whiskeys. It is a natural element for craft cocktails. Further, the globe’s top alcohol brand are under this segment. Long entrenched as an international company, Jameson acquired 17% in last year sales. The alcoholic spirit market subsidizes 76.3% of the sale of Irish whiskey globally. It also holds a diverse and strong superior segment that attracts craft drinkers. Millenniums are the key targeted consumers.

Craft Beer: burst or Bubble

The overall beer industry burgeoning category volume share in 2014 reached 11%. It is believed that it will evolve up to 20% by 2020. The saturation of the market is a major concern. The breweries number in America grew 19% in the previous year that is to 3,464. Consumer appeal is to remain firm in the defense of crafts. Customer prefers the local feel of purchasing from the closest breweries. The geographical breweries alleged for 77.8% in 2015 of the craft beer market manufacturing volume. The consumer also appreciates varied flavors and styles. The eagerness of wide experimentation has aided to sustain the market and its many exclusive beers and breweries. 22% of the consumer purchased more than 10 brands previous year who drank at least 1 beer a day. The flop in this scenario is to be the mainstream beer giants. They, in turn, themselves have invested in the craft.

Wine Holds Strong

Last year the sale of wine rose to 2%, up from the distressing 0.7% in 2014. As millennials reach the legal age of drinking very few of them purely consumes wine. Most of the customers experiment amid varied categories, instead remain loyal to one brand. This is the main driver for the spirit and beer market sale to grow at a greater speed in recent years. But this reason cannot be the imminent reason for the decline of the wine market. The key reason is the loyal consumers of wine. That is the younger and female. Last year 36% of the wine was purchased by millennials, accounting to 159.6 million. The type of wine consumed now by the consumer depends on premium. The 20 top U.S superior brands had developed 4% that is up to 64.7 million last year. The average price of the table wine obtained rose to $ 9.33 in 2015. Prosecco, rose, sauvignon Blanc and red blends were 2015 best sellers.

Tequila’s bright Rise

Superior tequila is preparing for a play for more space on the shelf. Brands that are image conscious like Patron and Casamigos have aided to transform customer’s attitudes towards the Mexican spirit. They are trying to create perception that tequila is not just a drink to enjoy in the party but also they want customers to see tequila as a drink enjoyed with a meal like beer and wine. Brands want the consumer to consider top-shelf tequila the same way of whiskey. Tequila is now embraced by many millennials as a superior product. This is aided by the appreciation of generation to all craft. Many brands of tequila have done a great job in featuring the artisanal traditions and handmade qualities behind the traditional Mexican spirit.

Vodka a tricky category

Vodka is a complex category. On one side the growth in 2015 was relatively low. On the other side, it represented 33.7% of the alcoholic spirit market which is much more than any other segment. It retains its lead in the term of sale, however smaller segment gain all the press and momentum. This is the main issue in this category. The category has struggled to evolve in the craft-driven market after the decline in the craze for flavored vodka. Absolut shrunk 2.2%, Grey Goose sales declined 7.6%, mid-level brands Skyy grew 2.0% and Svedka grew 2.9%. Although, superior brand New Amsterdam evolved 17.5% in sales last year. The growth of Burnett’s vodka showed that craft focus could aid revive flavored vodka.

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