Top 5 Trends to Watch in the Wine & Spirit Sector
Disruptions in supply chains, crop damage and a shift in consumer drinking attitudes are all trends to watch in the future, according to GlobalData.
Supply chain disruptions, climate change-induced crop damage and shifting consumer attitudes towards drinking are predicted to shape new trends and consumption habits in spirits and wine. That's according to GlobalData, a data and analytics company, which is expecting the market to increase by a compound annual growth rate (CAGR) of 1.2% by 2026. "Health consciousness and sustainability, sprinkled with a pinch of indulgence, are set to drive many innovations this year, as consumers look for products that align with their personal values without compromising on taste," said Holly Inglis, Beverages Analyst at GlobalData. Here are its top five predicted trends:
Low or no alcohol
Already established in the beer sector, low or no alcohol products are now taking shape in spirits and wine, GlobalData said. It pointed to innovations in 2021 such as Street Hard Seltzer in Russia, Desperado’s virgin 0.0% mojito beer in France and Svami Zero Proof non-alcoholic pink gin and tonic in India.
Two companies have recently launched products incorporating experimental and health trends. Spirits producer Amass has paired THC and CBD-infused with zero alcohol spirit, while in Poland, there have been CBD beer launches from Browar Miejski Gloger Sp. Z o. O. However GlobalData says given only 15% of global consumers stated they opted for novel/unusual flavors in alcoholic drinks in its second quarter survey, this is more of an emerging trend.
GlobalData’s Q3 2021 survey reveals that 55% and 40% of global consumers respectively find natural and organic claims to be very appealing. “Consumers are increasingly demanding sustainable and healthier alternatives to traditional products, and often this is achieved via certifications such as organic," it said, adding that Miguel Torres Las Mulas in Chile had launched an organic sparkling wine.
Following the huge success of hard seltzers, manufacturers are now looking to new cross-category innovations such as hard tea – novel alcoholic blends combined with a tea base, which is likely to appeal to younger consumers. One such product is Bully Boy’s Italian Iced Tea brand, which combines aromas of aperol spritz with iced/rtd tea flavours, with a 7% ABV content.
Portion control cans
Since the Covid-19 pandemic and subsequent lockdowns, canned wines and spirits have allowed many people with an accessible and affordable way to count both calories and consumption of alcohol units. In GlobalData’s Q2 2021 survey, 33% of global consumers stated that they are actively trying to reduce their consumption of calories, with a further 38% trying to reduce sugar consumption.