Bacardi teamed up with trend forecasters, The Future Lab, to gain insight on the top trends that will impact the spirits industry.
They are forecasting what, where, why, and how people will be drinking cocktails over the next 12 months. They featured everything from the rise of at-home drinking, consumers embracing new flavors, and no/low ABV spirits. Their findings report on all the factors that are driving the industry this year.
Let’s take a look and see what Bacardi has predicted for the year.
At Home Celebrations
RTDs have taken over as they exploded with a 131% rise in the U.S. Similar, at-home cocktail kits were loved by 40% of consumers, and the rise of e-commerce and online sales grew. The convenience of staying at home and having anything delivered to your doorstep became something consumers obsessed over. Drizly had experienced a 350% growth, according to IWRS so, the use of spirit delivery services will become increasingly popular as the year goes on.
Escapism Rules the Day
With wanting to escape the reality of the world, many people had a desire to make twists on cocktails and use extreme flavors. People are more willing than ever to play outside their cocktail comfort zone by adding spicy, sweet, bitter, and different flavors to their drinks. They also say a spike in spicy margaritas will continue to be popular as well as bitter negronis and gin & tonics with a twist.
According to Bacardi, “The popularity of bitter flavors, in particular, coincides with how consumers are embracing the Italian Aperitivo culture across the globe. Consumers are also seeking classic cocktails for a sense of familiarity, but, with the monotony of lockdown life, there’s been a renewed desire to experiment with fun twists on these time-honored staples.”
Spotlight on Premiumization
There is light at the end of the tunnel, and when we are in post-lockdown, consumers will be going out with a newfound knowledge of spirit and cocktails. As they experimented at home, their cocktail making and bartending skills will give them an appreciation for those creating innovative drinks.
Bacardi adds, “Premium spirits are also forecasted to increase their global volume market share to 13% by 2024, according to IWSR. The best premiumization opportunities in North America lie in tequila (60%), dark rum (32%), and mezcal (29%), based on insights gleaned from the Bacardi Global Brand Ambassador Survey 2020.”
With the want for more transparency and sustainability efforts, nearly 70% of consumers in the U.S. and Canada look for eco-friendly brands. Moving forward, there will also be a shift in bars and bartenders creating zero-waste programs. Sustainability will be at the forefront of people’s minds.
We are already seeing the shift in wanting to use health-boosting ingredients in cocktails so this trend will be growing for those seeking mindful options. Low ABV cocktails are providing those an alternative drink solution, and 47% of respondents are favoring this category. Bars and restaurants are making the shift, with many having hybrid menus that offer both non-alcoholic and alcoholic drinks.
Bartenders are even opting for immune-boosting ingredients when it comes to making cocktails too. “The Bacardi Global Brand Ambassador Survey 2020 reveals that functional ingredients with energy and superfood-related ingredients rank particularly strong amongst bartenders.” tenders.”