The world of alcoholic beverages is undergoing a transition. Consumers are seeking new experiences, flavors, and consumption styles, driving a series of changes in the market in 2024.
While categories like beer and wine have experienced a slowdown, spirits—those distilled from fermented products—have seen positive growth, mainly driven by ready-to-drink (RTD) beverages.
Consumer choices
More and more consumers are looking for convenient and accessible options to purchase their favorite alcoholic beverages. Convenience stores have emerged as the most dynamic distribution channel, thanks to their wide availability, extended hours, and a product offering that caters to the preferences of modern consumers. RTD beverages and beer are the categories that benefit the most from this growth, as consumers value the ease and speed with which they can acquire these beverages.
On the other hand, mass merchandise stores have also performed well, with a 0.4% increase in sales. However, liquor stores and grocery stores have experienced a decline in sales. Despite this, liquor stores remain the primary destination for spirits purchases, representing 65% of all off-premise sales.
Regional trends: which states lead alcohol consumption in 2024?
Key states in the U.S. are showing diverse trends in alcohol consumption. In California, RTD cocktails based on spirits have grown by 37% compared to last year, while tequila remains a dominant category, representing 27% of all spirits sales in the state. Texas, meanwhile, has seen growth in categories like cognac and lower-end beer, which have increased by 2% and 6%, respectively.
In New York, whiskey remains popular, although it has lost ground to tequila and mezcal, which have grown by 4% together. Meanwhile, in New Jersey, categories like brandy and rum, which have shown declines nationally, are experiencing a resurgence, with growth of 5% and 4%, respectively.
Pro Tip: At Toral Wines, we noticed that spirits are quite resilient to changes in consumer habits. To bring dynamism to the retail channel, we developed 9 Fairway, which, after traditional barrel aging, undergoes additional time in tequila, rum, and bourbon barrels, appealing to consumers looking for new experiences.
In Florida, whiskey has seen a 3% increase this year, while wine has risen by 2%. Additionally, thanks to the significant influence of Hispanic culture in the state, tequila and mezcal have experienced a remarkable 15% growth, while imported beers have risen by 4%.
Pro Tip: We also discovered that in Latin American countries, there’s strong interest in experimenting with aging in spirit barrels. The new consumer is eager for stories and new experiences.
9 Fairway Island: A wine standing out in a changing market
Amid these challenges, 9 Fairway Island: Cabernet Sauvignon Rum Barrel Aged has managed to stand out in the competitive wine market. Despite the overall decline in wine sales, 9 Fairway Island has maintained its relevance thanks to its focus on quality and innovation. The brand has successfully adapted to emerging trends, offering wines that not only meet traditional standards but also resonate with new consumer preferences.
This rum barrel-aged wine is carefully aged for six months in American oak barrels, followed by two additional months in barrels previously used for rum. This meticulous process adds layers of complexity and a flavor profile that is truly unique and appealing to consumers.
Additionally, with a focus on sustainability and a diversified offering, 9 Fairway is well-positioned to capitalize on growth opportunities in a rapidly evolving market. While other brands struggle to maintain their market share, 9 Fairway continues to innovate and capture the attention of wine enthusiasts.
Pro Tip: The brand name needs to connect with the end consumer and be memorable. Consumers need to recall the name in order to share it with friends. In our experience in the U.S., the market responds well to a name in English.
In short, the alcoholic beverage market is in constant evolution, and brands looking to succeed must adapt to new trends and consumer demands. Convenience, personalization, sustainability, and experience are the key pillars on which the industry’s future will be built.
Pro Tip: Lastly, by offering these special spirit barrel-aged wines, we’ve been invited to spirits events curious to taste our wines. The next one that Toral Wines is invited to is a bourbon tasting event that will be held at Gulfstream Park, Hallandale Beach, in Florida, on September 14th, where we will present 9 Fairway Bourbon Barrel Aged Cabernet Sauvignon.
SOURCE: https://www.parkstreet.com/alcohol-category-performance-2024/
