Recent insight from Southern Glazer’s Wine & Spirits indicates that fizzy drinks are outperforming traditional still-based products by 5-10 points.
Made from either fermentation or carbonation, these fizzy drinks are trending, with bubbly wines and cocktail variations of highballs and spritzers appearing on menus across the country. At retail, sparking ready-to-drink (RTD) canned cocktails and seltzers are also claiming valuable shelf space, according to SGWS.
Bubbly drinks have become big business, and not just during the summer months, but year-round.
Bubbly’s Versatility
According to Zach Poelma, senior vice president of Supplier Strategy & Insights for SGWS, sparkling wine’s versatility has contributed to its growing relevance in various daytime occasions.
“Its ability to be mixed with trending cocktails, such as the spritz, has broadened its appeal beyond traditional celebratory settings,” he says. “This adaptability has allowed sparkling wine to become a more versatile and accessible beverage, enjoyed throughout the day, from brunch to aperitifs and beyond.”
This shift also reflects a growing trend toward sessional, healthier and convenient beverage options. Consumers are seeking lighter, more refreshing alternatives that align with their evolving lifestyles and health preferences.
“Both sparkling wines and RTD cocktails are popular due to their sessionable nature and perceived health benefits,” continues Poelma. “RTDs, typically with a lower ABV of 4% to 7%, are ideal for extended drinking occasions. Sparkling wines, especially when mixed with soda or other non-alc mixers to create drinks like the Aperol Spritz and Hugo Spritz, become even lighter and more sessionable.”
Popular Bubbly’s
Ranch Water, Aperol Spritz, Hugo Spritz and other spritz variations are among the fastest growing cocktails on restaurant and bar menus, according to Poelma. While more traditional cocktails like Mojitos, Mimosas, Palomas, Gin Fizzes and French 75 maintain significant menu penetration, these newer options are gaining popularity.
“These drinks are often sessionable, allowing consumers to enjoy over longer periods, moderating their alcohol intake while socializing with friends and catering to various drink occasions,” says Poelma.
Nielsen IQ data states that High Noon makes up 35% of RTD market share. More recent innovations like Long Drink are also driving this growth, seeing an 82% increase in dollars compared to last year.
“Other notable RTD launches include Blake Lively’s Betty Booze and Sunny D Vodka Seltzer, as well as Diageo’s Crown Royal cocktails, holding nearly 3% in RTD cocktail market share,” notes Poelma. “Absolut cocktails, ranked in the top 15, have seen a 26% dollar increase versus last year, with the new Absolut and Cran line extension launching in early January 2024.”
Millennials and Gen Z Drawn to Fizzy Drinks
According to Numerator data, Gen Z and Millennials, aged 21-43, are driving the demand for fizzy drinks, including sparkling wines and innovative, healthier beverages, such as no and low alcohol cocktails. Health-conscious consumers seeking wellness, sustainability, portability, variety and reduced alcohol intake are particularly drawn to these trends.
“Gen Z, known for their adventurous palates, are exploring a wide range of beverages, from emerging brands to established classics,” says Poelma. “While they may experiment with various categories, they tend to remain loyal to their favorites, such as vodka, tequila, RTDs, hard seltzers and drinks with a sweeter taste profile. These preferences often reflect a desire for easy drinking options.”
Millennials, on the other hand, often lean towards sparkling wines and bubbly beverages, according to Poelma. Both Gen Z and Millennials are heavily influenced by social factors, such as what their friends and family are drinking. Their beverage choices are also often driven by the occasion and the availability of specific drinks.
“These trends reflect a broader shift towards mindful and moderate consumption, prioritizing enjoyment without the negative health consequences associated with higher alcohol content,” Poelma explains.
Continued Growth for Fizzy Drinks
As the fizzy drink market continues to expand beyond traditional alcohol beverages to include a growing segment of functional drinks, Poelma thinks the category growth isn’t expected to slow down anytime soon.
And in order for brands to cash in on this expansive market, they must create beverages that cater to consumer desires.
“As a significant portion of Gen Z (approximately 62.5% are currently younger than 21) approaches the legal drinking age, brands must prioritize sustainability and moderation to appeal to this environmentally conscious and health-focused demographic,” says Poelma. “Demand for sustainable packaging, including recycled or recyclable materials, refill models and lightweight solutions, will also continue to grow.”
