Alcohol trends have shifted significantly in our post-Covid 19 era. The bourbon boom that took place during and immediately after the pandemic has seemingly cooled. As whiskey backslides a bit, other categories have risen to capture consumer interest. Below are eight alcohol category trends to keep an eye on in 2025.
No- and Low-Alcohol Beverages
No- and low-alcohol beverages continue to gain traction nationwide. Some 25% of Americans over 21 participated in Dry January last year, according to research group Civic Science. And with the amount of beverage options that are now available, it’s becoming easier to take part in this month-long sober activation.
“While the beverage alcohol industry faced a challenging year in 2024, the low and no trend continues to be a clear bright spot for the industry, benefiting from changing consumer preferences driven by moderation and health and wellness trends,” says Zach Poelma, senior vice president, supplier strategy & insights at Southern Glazer’s Wine & Spirits.
Poelma notes that the alcohol-free segment is currently dominated by beer (85% share), followed by wine (11%) and spirits (5%). “While small, over the last three years, no-alcohol spirits have gained 3.3 points of dollar share within the Beer/Wine/Spirits Non-Alcoholic segment,” he says.
Beverage brands across the globe have taken note of the rising consumer interest in the no- and low-alcohol segment. Hotel conglomerate Hilton has even started offering alcohol-free cocktails on select bar menus, featuring zero proof spirit brands such as Lyre’s to curate healthier concoctions.
Hilton’s Hasta la Matcha, for example, contains 2 oz. of Lyre’s Agave Blanco, 0.75 oz. of lime juice and 2.25 oz. of matcha mix. This mocktail is offered at the hotel’s Times Square location.
At-home cocktail maker brand Bartesian has also recently released some no- and low-alcohol options for consumers to choose from.
“Consumer feedback is overwhelmingly positive for this feature. It gives users the option to experiment and customize their drink for the occasion or time of the day/week,” says Bartesian founder and CEO Ryan Close. “Our team of expert food scientists are always looking for new ways to deploy the Bartesian and are currently experimenting with options that would specifically address the no/low alcohol segment.”
This doesn’t necessarily mean that no- and low-alcohol options will drive alcohol beverages out. In fact, Poelma notes that almost every consumer that buys alcohol-free products is also purchasing alcohol products.
“More than 93% of non-alcohol buyers are also purchasing alcohol versions of beer, wine and spirits,” he says. “Per Nielsen, this means that buyers are highly engaged with beverage alcohol, resulting in more value to total alcohol.”
While beverage brands continue to pivot and enter the low and no-alcohol space, there are some that have become fan favorites among consumers.
At Southern Glazer’s, Poelma has noticed that Ritual Zero Proof, Mionetto Alcohol Removed, Freixenet Alcohol Removed, CleanCo Zero Proof Spirits, Fre and Seaglass are among some of the most popular alcohol-free wines and spirits.
“On the low alcohol side, Kim Crawford Illuminate and Waterbrook Clean are among the most popular wines that continue to show strong potential,” he says.
If you ask anyone in the industry, they will likely say that the no- and low-alcohol movement is here to stay, especially with other beverage segments such as cannabis-infused drinks also gaining traction.
“Alcohol-free moments like Dry January continue to increase in popularity year to year, with a quarter of young adults taking on the challenge in 2024 — a 9% increase from the 16% who participated in 2023,” says Close. “It’s clear that the sober curious lifestyle is gaining momentum every year. This rising trend is here to stay, and brands need to adapt to consumer interest.”
Cannabis Beverages
The rise of the better-for-you beverage movement has resulted in a nice boost in cannabis-infused drinks. As consumers look for alcohol alternatives, especially during Dry January, some have turned to THC to get a more relaxed buzz without the alcohol.
According to Grand View Research, the global cannabis beverage market was valued at $1.16 billion in 2023 and is projected to grow at a CAGR of 19.2% from 2024 to 2030. The North American market dominates this space due to widespread legalization, particularly in the U.S. and Canada.
Infused beverages are also an easy way for new consumers to try cannabis in a format that they are familiar with, unlike smoking. “The availability of hemp-derived drinks in beverage formats is very familiar to someone who may not be as familiar with cannabis or new to these products,” says hemp manufacturer and supplier Samson Extracts‘ CEO, Kyle Neathery.
Due to cannabis beverages’ increasing popularity, not only are they showing up on liquor store shelves in legal states, but they are also making appearances at certain on-premise locations.
The dispensary Planet 13 in Las Vegas recently opened their Dazed Lounge, which allows guests to consume cannabis beverages on-site in a speakeasy-style space accessible through a hidden door. The lounge offers cannabis sodas and sparkling waters ($10), as well as alcohol-free cocktails that contain THC ($15-$35).
There’s also Wake N Bakery, which is Chicago’s first legal cannabis-infused bakery and coffee shop. Making their debut in January of 2020, visitors can drink cannabis-infused coffees, teas and lemonades while trying the cafe’s THC-infused baked goods.
The off-premise sector is where cannabis beverages have gained major traction, with stores from large chains to independents selling a variety of these drinks in states where it is legal.
Total Wine & More sells a wide variety of THC beverages across the country. Similarly, Spec’s Wine, Spirits, & Finer Foods also offers hemp-derived THC drinks in Texas, while ABC Fine Wine & Spirits sells them in Florida.
Cannabis-infused beverages are becoming so mainstream that they’re more common to be seen in liquor stores than in dispensaries. Neathery explains that there’s a very good reason for this.
“Logistically, it’s incredibly difficult to sell cannabis beverages in dispensaries,” he says. “Transport companies aren’t invested in them because they’re such a small category when you look at the grand scheme of marijuana, so they’re not incentivized to invest in it.
There’s a tremendous size difference between 50 cans of beverages and 50 bottles of gummies. And since most companies sell to different stores, it’s a lot of space being utilized for multiple stops.
“Another issue is the technology that trucks need to have in order to keep the beverages at a certain temperature,” Neathery says. “That’s a lot of infrastructure that marijuana and transport companies need to invest in.”
Since most transport companies are already equipped with everything needed to deliver products to liquor stores, it doesn’t require as much effort to add on a few extra cases of cannabis beverages.
Some beverage alcohol distributors have also tapped into the infused beverage space. Southern Glazer’s Wine & Spirits, for example, began offering CBD beverages a few years ago.
“I think the industry will continue to grow and feed through additional liquor distribution,” Neathery says. “Instead of there being competition between the two industries, there’s actually been more of an embrace just because companies are seeing margin improvements.”
Beer Shows Improvement
Beer sales have been less than desirable as of late, to put it mildly. The U.S. beer industry’s volume consumption decreased 4.4% in 2023 to 2.68 billion 2.25-gallon cases, according to the Beverage Information Group’s 2024 Industry Overview.
Just two beer segments — imported and flavored malt beverages (FMBs) — achieved any volume growth, and that wasn’t enough to offset the significant decline of other domestic beer categories.
However, new data suggests beer sales are starting to finally turn around.
Fintech data found that beer sales increased slightly between 2023 and 2024. Presented during the National Beer Wholesalers Association’s (NBWA) Fintech & NBWA Beer Industry Update webinar in mid-December 2024, total beer sales to on- and off-premise businesses totaled $68.6 billion in 2023.
Since 2024 hadn’t yet fully come to a close at the time of the presentation, Fintech estimated a total of $70.7 billion in beer sales for the year. That’s a 3% increase from 2023. Albeit small, an increase is still an increase — something the beer industry hasn’t seen in quite some time.
Some of this growth can be attributed to the healthier-for-you-beverages movement, with alcohol-free beers taking up quite a bit of shelf space at both on- and off-premise businesses.
The zero-proof beer selection at Bagley Liquor in Bagley, MN, is booming, says liquor operations manager Christopher Arnold. “My non-alcoholic sales are through the roof.”
The store has a four-foot end cap section with five shelves and 29 SKUs, “and it gets replenished every week,” he says. “For a lot of consumers, they’re switching to these beverages because of health issues, but honestly the buying patterns have changed ever since Covid.”
Two Roads Brewing in Stratford, CT, started expanding its portfolio beyond beer in recent years, and Brewmaster Phil Markowski says the company’s alcohol-free offerings have seen great success.
“The line, which includes our award-winning Non-Alcoholic Juicy IPA, is currently outperforming the rest of the non-alcoholic segment in the Northeast,” he notes. “With more consumers looking to moderate their consumption, we’ve created quality products that still offer the taste of traditional beer without the buzz.”
While these zero proof options are certainly helping to keep beer sales afloat, the industry is still struggling. With increasing prices, an overly saturated craft beer market and rising preferences for no- or low-alcohol choices, brews have become a second choice for consumers.
“About five years ago at this convention, NBWA decided to talk openly about some of the challenges facing the beer category,” says NBWA president and CEO Craig Purser at NBWA’s 87th Annual Convention and Product Showcase. “Since that time, these challenges have only grown, particularly among emerging LDA consumers.”
Despite the uncertainty for beer’s future, some well-known brands are holding steady. According to the Fintech data, Anheuser-Busch InBev was a top purchased brand supplier for both on- and off-premise in 2024. Michelob Ultra had the biggest share gain off-premise, while Modelo Especial had the biggest share gain on-premise.
Rebecca Maisel, chairwoman of NBWA, also sees some opportunities for growth in the beer industry.
“Wholesalers have the opportunity to help win back those occasions to execute in the on-premise and find opportunity for growth,” she says. “There are plenty of success stories and blockbuster brands, and the beer category and wholesalers play such a big part in building those brands and telling their stories.”
Attracting Younger Consumers to Wine
Of all the categories facing an uncertain future due to younger consumers, wine likely stands out the most. Millennials are hardly wine experts, while Gen Z hardly drinks at all. When either generation does actually drink, they reach more for spirits (especially whiskey and tequila), no/low-ABV options and/or canned cocktails. Wine is not particularly on their radar.
One reason why: a high level of learning required. Wine makes younger generations feel dumb and overwhelmed because of the sheer number of varietals, styles and areas of denomination that define this vast category. It’s much easier to understand a clear tequila or canned Martini. And nobody wants to drink what their parents did. Millennials and Gen Z are the children of Boomers and Gen X, who love wine. Naturally, their kids look elsewhere.
The numbers speak for themselves. Wine is down across the country. Producers and retailers have certainly taken notice. Wine sections in some stores have shrunk, while wine brands have refocused their marketing efforts.
For instance: the classic Beaujolais winemaker Georges Duboeuf. The company’s new “It Never Gets Old” program for its traditional Nouveau release is a cheeky play on words more in line with Gen Z attitudes — authentic and off the cuff. Images in this advertising are social and laid back: record players, lipstick, dominoes, cheese. The 2024 Nouveau portfolio is also the first with a screwcap on every Nouveau bottle, a nod to younger consumers drinking in smaller amounts.
Additionally, Georges Duboeuf has leaned more into tasting events in the form of relaxed social gatherings. Education also remains important, teaching consumers about the people behind this multi-generational brand that first popularized the Nouveau style globally.
What about at the retail level? How are stores getting younger consumers interested in wine? The key, as always, is to stay tuned into whatever works.
“I recently heard someone say ‘Acid is the new oak,’ and I find that exceptionally true with younger consumers,” says Alec Stein, general manager of Garfield’s Beverage on N. Milwaukee Ave. in Chicago. “High acid, joined with lighter body and lower ABV, are far and beyond the wines we’re selling the most of. And all these wines tend to have packaging that strips away pretentiousness. Champagne corks and wire cages have become crown caps, and where labels once had regal chateaus, I now see cartoon characters or sketches of the wine maker’s dog.”
Other wine retailers have embraced similar strategies. Court Liquors, in Long Branch, NJ, is located close to Monmouth University, with a student enrollment of around 6,000, and is also near the mansion-lined beaches of Asbury Park. Natural wines comprise 30% of Court Liquors wine section and have become a go-to for younger customers.
“Early on I noticed that younger consumers were drawn to this category,” says Court Liquors VP Nicholas Pizzonia. “Honestly, I was drawn to it too. It seemed refreshing, new, and without pretense. I view natural wine as a counterculture.”
“Which is probably the reason why younger consumers are drawn to it,” he adds. “It is not your parents’ wine or wine rules. It’s creative, with a DIY kind of attitude. Natural wine doesn’t comply with the conventional rules of wine: whether how it’s made, or where it comes from, the more obscure the better.”
This has provided growth within an overall lagging category.
“Our wine sales are even but within our wine sales, natural continues to grow,” Pizzonia says. “We are trending 10% up YOY in natural wine sales. This is a positive sign, considering wine sales are trending down.”
Ready-to-Drink Still Booming
Joining tequila and THC drinks as a segment still growing is canned cocktails. What started as a trend at the beginning of the pandemic has continued through to current times. Ready-to-Drink products (RTDs) continue to appeal to younger consumers for being convenient, affordable and high quality.
Especially for spirits-based RTDs. According to the Distilled Spirits Council of the United States (DISCUS), premixed cocktails including spirits RTDs were up 26.8% or $599 million to $2.8 billion in 2023.
“Despite the hard seltzer craze we witnessed from 2017 to 202,1 which was malt-driven, spirits-based products have actually grown faster, just off a smaller base,” says Marten Lodewijks, head of consulting – Americas at IWSR Drinks Market Analysis, during the annual DISCUS economic briefing. “Spirits-based products, including the vodka- and tequila-based hard seltzers that entered the picture later, offer consumers a slightly more premium experience, and that has been key to their success over the malt-based alternatives that initially created the category.”
As spirits take over the category, what’s the demo for these products?
“Millennials and Gen Z are driving the RTD category growth,” explains Jill Burns and Kelly Gasnik, sisters and cofounders of the RTD brand Austin Cocktails. “According to a recent Global Drinks Intel report, only 16% of RTD consumers are aged over 55. When looking at the broader category, RTDs have also evolved from a female-leaning category to a more gender-neutral category. To date, women consumed 52% of RTDs, and men 48%.”
Agreeing with the point about premiumization is John Neunson, cofounder of Brody’s Crafted Cocktails.
“After being inundated with single-serve canned versions of seltzers and cocktails (usually at much lower ABVs) over the last several years, consumers are now looking to experience an authentic cocktail experience, driven by premium spirits, proper balance and true ABV profiles,” Neunson says.
“While vodka-based cocktails have been, and will likely continue to drive the category, both tequila and bourbon options are becoming more popular,” he adds. “With tequila and bourbon gaining in popularity, I expect to see a variety of new cocktail options based on these base spirits.”
This recent evolution in RTDs can lead to consumer confusion, especially as more and more brands enter this fast-growing category.
“I think the most challenging dimension of the ‘brand crowding’ issue right now is helping the consumer understand this relatively new and still very dynamic shelf,” says Burns and Gasnik. “Many consumers are still just trying to discern the difference between malt, wine, and spirits bases, ABV levels, sugar content, etc.”
However, rapid evolution also brings new opportunities.
“What was once a sugar-laden category also has become a shelf with a very premium subsegment with very little sugar and high-quality ingredients,” they add. “Helping consumers ascertain where each product offering falls in those areas is key for existing and new brands. I think there are opportunities for growth for new and existing brands that can break through that noise.”
The Threat of Tariffs
After President Donald Trump threatened 25% imports tariffs on U.S. trading partners Mexico and Canada, several organizations in the beverage alcohol industry have expressed concerns.
“We appreciate President Trump’s goal to protect the American people and U.S. jobs. Our industry has been weighed down by retaliatory tariffs as part of unrelated trade disputes since 2018, which crashed our exports harming thousands of distillers and their farmers across the United States,” says Distilled Spirits Council president and CEO Chris Swonger, in a press release. “We are now currently facing the threat of a devastating 50% tariff on American whiskey by the EU at the end of March 2025. Imposing a tariff on tequila and Canadian whisky from two of our largest trading partners could kick off more retaliatory tariffs on American spirits to Canada and Mexico.”
“Under the United States-Mexico-Canada Agreement (USMCA), tequila and Canadian whisky are designated as distinctive products, similar to bourbon, where they can only be made in their country of origin,” Swonger adds. “Slapping a tariff on tequila and Canadian whisky will not boost American jobs simply because they cannot be produced in the United States.”
The continued threat of tariffs comes at a time when the spirits industry has seen declines.
“The U.S. spirits sector continues to experience a slowdown,” Swonger says. “At the end of the day, tariffs on spirits products from our neighbors to the north and south are going to hurt U.S. consumers and lead to job losses across the U.S. hospitality industry just as these businesses continue their long recovery from the pandemic. As President Trump comes into office, we urge all of governments to work together to reach an agreement that ensures tariffs are not imposed on spirits products.
Echoing his concerns is Dina Opici, Wine & Spirits Wholesalers of America chairwoman and president of Opici Family Distributing.
“Wine & Spirits Wholesalers of America (WSWA) are deeply concerned about President Trump’s announcement of a proposed 25% tariff on goods from Mexico and Canada,” Opici says, in a press release. “These tariffs pose a significant threat to an industry already grappling with declining volumes and rising costs.
Opici expressed concern that these proposed tariffs on goods from Mexico would upend the premiumization and innovation that have driven recent growth in the tequila industry, to the detriment of bars, restaurants and retailers nationwide. She also worried that Canadian whisky, already facing headwinds, would suffer further under the proposed tariffs.
“The wine and spirits industry is built upon products with unique origins, crafted by producers whose authenticity resonates with consumers,” Opici says. “These proposed tariffs would undermine this authenticity by disrupting the critical role imports play in our market and limiting consumer access to the distinctive products consumers know and love.”
“Beyond our industry, the ripple effects of such tariffs would extend to consumers, retailers and the recovering hospitality sector – increasing costs at a time when affordability is essential,” she adds. “These broad economic consequences jeopardize the stability and growth of our industry and threaten the livelihoods of those it supports. Now more than ever, it is vital to advocate for policies that sustain the wine and spirits industry, protect American jobs, and maintain a healthy market.”
Tequila Shines
The tequila craze may be cooling, but on-premise experts expect demand for the agave spirit to continue at bars and restaurants. The popular styles and brands of tequila may shift, as many predict a continued rise in mezcal and other related spirits.
Brands from lesser-known craft producers and additive-free tequilas will gain ground in 2025, although supply issues and the threat of tariffs on products from Mexico could create problems for on- and off-premise operators.
The tequila and agave spirits boom shows no signs of slowing down, says Nick Porpiglia, director of food & beverage at The Ned NoMad in New York. “What’s emerging now is a shift: Consumers who were once loyal to mainstream brands are increasingly exploring options from smaller, lesser-known distillers,” he says.
These craft producers place a strong emphasis on capturing the unique nuances of flavor profiles and terroir, Porpiglia says. They’re also offering distinctive expressions such as cristalino and rosé tequila “that are gaining attention for their complexity and originality.”
Cocktail drinkers will become increasingly interested in exactly what is in their spirits, predicts Gabe Sanchez, cocktail expert at Midnight Rambler at The Joule in Dallas. “The flavoring agents, mouthfeel additives and distilling shortcuts will face greater scrutiny going forward.”
For example, Sanchez says, the influx of celebrity tequila brands has brought many new drinkers to the agave world. “But there will be a significant push by consumers toward additive-free tequila.”
Mezcal Momentum
Tequila has been taking the on-premise by storm for years now, “and I don’t think it’s stopping,” says Daniel King, restaurant and bar manager at Evelyn’s at Hutton Hotel in Nashville, TN. And as tequila grows, “it’s really clearing the way for artisanal mezcal to ride its coattails.”
Mezcal can be a bit intimidating to many drinkers, “and has been wrongly labeled — in my opinion — as a one-trick smoke bomb,” King says. “While some brands fit that description, there is a whole world of complexity and diversity waiting to be discovered. I know mezcal has been a growing part of the discussion for years, but I believe that will continue as long as tequila continues to dominate the international spirits market.”
Indeed, mezcal is “the smoky bad boy of the bar world,” says Niko Novick, executive of beverage at Superfrico in the Cosmopolitan of Las Vegas. “With so many varietal options, its intense flavors and mysterious nature make every sip versatile enough to stir endless conversations with your palate, unlike tequila, which is made from only one varietal and just wants to party.”
On the other hand, “tequila’s cool, rebellious cousin, raicilla, is about to blow up,” Novick says. “This lesser-known agave spirit is about to make mezcal look mainstream. It’s smoky, earthy, with just a little bit of mystique — perfect for drinkers who are ready to move beyond the usual suspects.”
