May.2023 22
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How Innovation In The Alcoholic Beverage Industry Is Catering To The Next Generation Of Drinkers
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The alcoholic beverage industry is constantly emerging with new products, new flavours, new drinking occasions and new options. Gen Z's changing attitudes towards alcohol are having a major impact. Gen Z is leading the way in the "moderate drinking" space. They demand full-flavored alcoholic beverages, but with less alcohol content. Beverage brands are innovating in the alcoholic beverage category to capitalize on the spending power of clean-living Gen Z consumers. . This is an excellent time for innovation in the alcoholic beverage space.

 

There are many factors that influence this change in behavior. The first is the health drive. Generation Z has a strong concept of health, and diet therapy and health-care movements are on the rise. They pay attention to food health issues and like functional products.

This trend opens up more possibilities for alcoholic beverage brands and helps drive new functional trends such as alcoholic beverages. Based on this, various wine companies have stepped up innovation and actively responded, and various alcoholic beverages with functional ingredients have been born, such as probiotic beer and hyaluronic acid beer.

Secondly, for brands and enterprises, one of the most important factors is the rise of "consumer-based thinking mode of pleasing themselves". For Gen Z consumers, drinking is about socializing. Statistics show that 49% of Gen Z drinkers open a can or pour a glass primarily to have a good time. Traditional alcohol brands need to come up with new and creative ways to appeal to younger generations.

Positioning is key for brands looking to stay competitive, and those that do well will create funnier, bolder, newer alternatives to soft drinks. That means more flavors, ingredients and processing.

Finally, the popularity of non-alcoholic beer, driven by the global success of Heineken 0.0. Other brands looking to reposition zero-alcohol are also driving the popularity of non-alcoholic beer.

 

New alcohol-free drinking occasions will also increasingly complement dining occasions and options. Alcohol-free wine is poised to break through, with experts predicting steady growth over the next five years.

Despite changing consumer attitudes, people are still socializing and wanting a heightened experience. New drinking occasions call for new products that feel indulgent or offer tangible benefits. Brands can capitalize on the growing number of health-conscious consumers.

The choice of no or low alcohol beverages has become the norm, and in keeping with consumer priorities and an evolving alcohol culture, it will be crucial for brands to enter this market in an engaging and unique way. The alcohol category offers limitless potential for innovation, but brands need to stand out boldly and must be willing to stay ahead of the curve with all new products and propositions to stay relevant.

 

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