Alcoholic beverages: these are the trends in 2024

Alcoholic beverages with reduced alcohol content are still in demand: People are focusing on a conscious lifestyle and at the same time finding joy in new tastes: The major developments in the food and beverage industry towards conscious consumption are also bringing about a turning point in alcoholic beverages.

In summary, the trends in alcoholic beverages in the context of the Top Trends 2024 in the beverage market can be described as follows: It is becoming lighter, more varied and more sustainable.

Alcoholic beverages that contain less alcohol and fewer calories are now said to put less strain on the organism and at the same time bring new, fruity taste experiences Consumers are looking for new (taste) experiences, especially now: After all, the lockdowns and the many months at home have increasingly affected their minds. Especially since the pandemic, alcoholic beverages, which enhance the summer feeling, have taken on a new meaning in "holidays at home".

Consumer research by Innova revealed that more than a third of consumers worldwide have given up alcohol and reduced their alcohol consumption in the last twelve months for health reasons. This shows the potential that now lies in the market for alcohol-reduced and non-alcoholic beverages.

In fact, this can also be seen in the launches. The regions with the most launches in the no/low alcohol segment in 2023 were Western Europe with 37%, North America with 24% and Asia with 15%. 

Conscious lifestyle: non-alcoholic segment on the rise

It is exciting that non-alcoholic beverages are growing faster than low-alcohol beverages: global new product development (NPD) for low-alcohol and non-alcoholic variants has been growing at an average rate of 13.6% over the last five years, outperforming the overall alcoholic beverage market, which is growing at an average rate of 2.6% (2018-2023). 

For example, 2 in 5 adults worldwide bought beer in 2023, while 14% bought non-alcoholic beer. In the cider category, 10% of adults bought cider last year, while half of them bought a non-alcoholic version.

Innova asked in a survey in December 2023 why people have increased their consumption of non-alcoholic drinks. The main answers were that consumers want to have control over the amount they drink and because it is healthier.

Alcoholic beverages: less is more!

Globally, most new product launches for "light" alcoholic beverages and non-alcoholic drinks were recorded in the beer (46%), flavoured alcoholic beverages (25%) and wine (19%) markets, followed by cider and gin with 2% each and liqueurs with 1%. 

The premise for 2024 is: Finding security in the familiar with a breeze of new and exciting taste experiences. In general, experts see a growing trend towards limited editions, especially in the low/no alcohol segment. Gluten-free and sugar- and calorie-reduced drinks are making the biggest gains in market penetration in this segment. 

As consumers place more emphasis on a clear mind and a healthy body, non-alcoholic versions are a significant market segment in the beverage industry. Today, consumers worldwide cite the following reasons for consuming non-alcoholic versions: To relax and wind down (31 percent), that it tastes good (30 percent) and to quench thirst (26 percent). 

Taste is the trump card for low/no alcohol

In line with global market trends, flavor innovation will be a key avenue for product development in most sub-categories, delighting consumers with interesting and novel flavors. For example, we will now increasingly find unusual botanicals, international flavors and premium ingredients in alcoholic beverages.

Europe is leading the way here: at 92%, the continent is the dominant region for launches with special flavors, for example in Bellini, fruit wines or cocktails. North America has the highest proportion of hard seltzers at 32%, including combinations with fruit juices, particularly margarita-style flavors such as mango or strawberry.

Also notable in the previous year were home-style launches with elderflower, hibiscus and rose, as well as launches with citrus flavors (30%), alcoholic lemonade with fruit flavours, non-alcoholic mojitos and hybrid drinks such as vodka/rum mixers or espresso martini cocktails.

The tangy citrus flavours remain the darling of flavors for alcoholic beverages - for cocktails such as mojito drinks, vodka drinks, hard seltzer, hard iced tea or alcoholic soda.  

Strawberry flavours provide sweet enjoyment in RTD drinks such as Strawberry Daiquiri or original hard seltzer combinations mixed with kiwi or pineapple. 
Inspired by the Pantone Color of the year 2024 "Peach Fuzz", this year we will increasingly find white peach in fruity mixed drinks.

Beer records the strongest growth rates

Cider and beer are also tending to remain light and low-alcohol - but not only: a counter-trend is emerging on the beer market in particular, with products with a high alcohol content also growing again. In the previous year, products with no alcohol on the one hand and products with a high alcohol content on the other recorded the highest growth rates. 

In global terms, beer is the leading alcoholic beverage, with 39% of all alcoholic beverages purchased by adults. The hoppy drink is followed by wine with 29% and spirits with 24%. Non-alcoholic beer is in fourth place with 14%. 

Overall, the beer market has grown by seven percent, accounting for 43 percent of the total market when broken down by segment. Most launches in 2023 were recorded in the USA, UK and Canada. 

Breweries are now also introducing innovations with flavored beers to appeal to younger people. In 2022 alone, the market for flavored beer beverages grew by 28% globally. Following the rise of craft beer, North America also appears to be showing interest in the hop water segment. It is to be expected that other markets will follow suit.