Disruptions during the pandemic intensified some beverage alcohol trends that were already in progress, including the rise of e-commerce and the RTD format. The market is now beginning to return to historical trends with some exceptions. 

The spirits category grew rapidly at a +4% CAGR from 2019-2021 and is now expected to moderate to +2% from 2022-2027, according to IWSR. Consumers, especially younger generations, are shifting towards a more moderate approach to alcohol consumption with low and no-alcohol products expected to grow at +17% CAGR between 2022 and 2027. E-commerce sales of beverage alcohol have also plateaued after surging while the on-premise was restricted.

Looking forward, brands must adapt to consumer moderation trends and current economic conditions through strategic innovation and creative product launches. Brand owners should also consider testing new products in small markets and optimizing before scaling nationwide. [IWSR]