The Future of Adult Beverages: Marketing Trends and Consumer Insights

How are consumers’ changing drinking habits impacting your local adult beverages accounts?  AudienceSCAN from AdMall projects a decline in the number of liquor store shoppers in the U.S. through 2028. Similarly, the number of consumers drinking wine on a weekly basis is falling. Your accounts must develop the best ad campaigns to maintain or grow their share of this competitive market.

How has consumption of adult beverages changed in the U.S.?

U.S. adults drank more during the pandemic, and they also spent money on craft beer, wine and upscale spirits. But since then, the latest research shows consumers have become aware of the negative health impacts of drinking too much. Only around 54% of U.S. adults have imbibed in the past year, reports Gallup.

For 36%, the beverage of choice remains beer. Around 32% of adults drink liquor and 30% enjoy wine.

How your accounts can adjust their advertising

With people drinking less, your accounts must adjust their approach to reach their target audiences. Southern Glazers Wine & Spirits, a distributor, revealed important industry trends to consider in its recent commercial intelligence release: 5 Ways to Win in Beverage Alcohol. Here are the details to share with your accounts regarding adult beverages.

Targeting younger consumers

Experts encourage marketers to target younger households. These consumers are still forming their purchase habits and are open to considering new brands. In particular, analysts point out that 35.6% of households are now millennials or Gen Zers. 46% of these consumers believe the best place to try out a new brand of adult beverage is at a bar or restaurant.

AudienceSCAN research shows that these consumers are 37% more likely than average U.S. adults to go out with friends. This habit makes them a perfect target for branding campaigns.

 Highlighting popular beverages

Younger consumers enjoy active lifestyles. Being on the go has increased the popularity of ready-to-drink beverages, especially in the spirits category. Producers can help retailers market low-risk small-size trial servings. Consumers who want to try something new won’t be as reluctant to purchase a small serving. In addition, smaller servings appeal to consumers who want to drink in moderation.

Promoting special events

Promoting adult beverages in connection with important events yields benefits. For example, party hosts still believe wine matters for special dinner occasions. Nice bottles of wine never go out of style for special events.

Convenience stores still account for nearly 33% of beer sales. But other retailers can expand their share of business by connecting their inventory to special events, like the big games that people gather to watch. In particular, regional craft beer marketers can create a reputation around unique ingredients and supporting local sports teams.

How to find the right advertising strategy

Finding the right marketing strategy for adult beverages can be challenging. The CEO of Boston Beer reports that, “…sophisticated, really quality advertising, 70% to 80% doesn’t work, 20% to 30% works,” said Jim Koch. He announced that his company spent heavily on advertising and saw revenue drop. As a result, the company will change what it has been doing.

Outshinery reports that smaller brands can target niche audiences through content creators. Highlighting the history of the brand and emphasizing partnerships that matter to younger consumers can drive sales. Often these partnerships will connect with social responsibility and sustainability.

Remind your accounts that affluent millennials comprise a valuable target audience. AudienceSCAN data indicates that nearly 15% of these consumers will switch brands to support an important cause/charity.

Be ready to help your clients with the unique challenges of promoting adult beverages. Messaging must respect laws that limit age targeting, for example. And any direct-to-consumer shipping must not run afoul of state regulations regarding the three-tier system of producer-distributor-retailer.

Closing thoughts

Consumers continue to purchase adult beverages. They likely do not imbibe as much as they did in the past. But when they want to celebrate, they will spend on brands that resonate. With the right marketing campaigns, your accounts can be on the consideration list.

Image by Helena Lopes on Pexels.

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