Cocktail Culture - Industry Insights, Consumer Drivers, Brand Challenges and Innovation Landscape

Cocktail Culture - Industry Insights, Consumer Drivers, Brand Challenges and Innovation Landscape

Summary

In 2024, cocktail culture has been influenced by relatively recent developments-the craft craze, COVID's elevation of home-based indulgence and entertaining, increased RTD product diversity and sophistication, and the emergence of a more experiential, quality- not quantity-focused Generation Z consumer base-contributing to a further potential growth in relevance relative to other forms of alcohol, particularly in the premium indulgence space.

So-called cocktail culture is a historic trend that has undergone several movements over more than 200 years. In the 21st century, it has benefited from the craft alcohol movement and demand for premium experiences. The pandemic, however, proved a watershed, fueling a growth in interest in at-home mixology alongside boosting demand for, and innovation, in ready-to-drink (RTD) cocktails.

Scope

• Cocktails have always occupied a premium space, financially and in perception. They are based on an elevated experience, bringing in diverse ingredients, often precise detail in preparation, association with expertise and creativity, and a display, or social currency element as a shared experience.
• With a cost-of-living crisis in full swing, purchases are being filtered through a more exacting screening process of need by consumers.
• Cocktails tick a full range of boxes across three key themes of reward, filtering, and product choice, and align with the idea of a lower volume, but more creatively expressive, exciting consumption experience.
• The old favorites of the cocktail market remain key, but they are familiar and not exciting to younger generations looking for relevance to their preferences, experiences, and for experiential challenges. Cocktail culture has a reactionary element to it, recycling trends from the past, which might appeal to retro connoisseurs and older consumers, but threatens the ability to keep the segment vital for newer consumers.

Reasons to Buy

Consider emerging opportunities and threats in the cocktail and FAB market and gain insight into potential future consumer behavior.
Identify interesting new and emerging concepts, products, and ideas on offer in retail, foodservice, online spaces, and beyond.
Understand how new concepts and ideas fit into – or challenge – current consumer trends.
Gain insight and inspiration for innovation programs and new product development.