New Year, New Trends

From the latest social networks to the clothes we wear, there’s always a new trend to follow. The beverage industry is no exception! So, what beverage trends can we expect from the alcohol industry in 2025? From the increasing popularity of craft distilleries to more nonalcoholic options, here are the 2025 alcohol trends we can expect in the new year. 

1. Craft Distilleries Are Expanding Nationwide

From 2011 to 2021, the number of craft distilleries in the US increased five-fold. It's not slowing down, either – the number grew by 17.4% in 2022.  Although craft spirits currently make up only 7% of total sales value, that figure is expected to double by 2025. 

So far, craft distilleries largely live in just ten states. The top five states make up almost a third of the market, and the next five are around half as much. The other forty states comprise an average of just 1.2% a piece. That leaves a lot of room for growth as the trend spreads to untapped territory.

2. More Diversity in Craft Spirits

Craft spirits are not just becoming more numerous; they’re also becoming more diverse. Whiskey represents 36% of craft spirits, but distillers are branching out, especially with flavored whiskey varieties. 

Meanwhile, craft gin, rum, and tequila are all expected to grow significantly in the coming years. Craft gin, for instance, is forecast to grow by 23% by 2025, while craft rum is projected to see 12% growth despite a likely overall decline in rum sales.

Tequila continues to face supply challenges, presenting a unique opportunity for craft distilleries to fill the gap with agave-based spirits.

3. More Low-Alcohol and No-Alcohol Options

Demand for low-alcohol and no-alcohol options is projected to grow at a compounded annual growth rate (CAGR) of 7% through 2026. According to a Pew Research Center, 38% of U.S. adults now report that they do not consume alcoholic beverages, up from 36% in 2022. This growing segment presents opportunities for alcohol producers to capture consumers away from traditional beverages like soda and water. 

Additionally, research has shown that it's common for consumers to switch between regular alcoholic beverages and no-alcohol or low-alcohol products – depending on the survey, somewhere between 40% and 78% of no/low-product consumers say that they also drink full-strength alcohol. 

Some adults prefer to abstain on certain occasions and consume alcohol on others, and no/low products are also helpful for those trying to regulate their alcohol intake per night.

Millennials make up 43% of US no/low consumers, but these products are also surprisingly popular among drinking-age Gen Z. No-alcohol products tend to be more popular among people who abstain from alcohol altogether, while drinkers tend to go for low-alcohol substitutes.

4. Ready-to-Drink Canned Cocktails 

Canned cocktails are gaining traction as consumers seek convenience without sacrificing flavor. In fact, The canned cocktails market captured a valuation of over US$ 25 billion in 2020 and is foreseen to expand at a CAGR of over 20% during the forecast period of 2020-2030.

These ready-to-drink options appeal to those who want a mixology experience on the go or at home without the need for a full bar setup. Canned cocktails offer a diverse range of flavors and alcohol levels, aligning with the growing trend toward low-alcohol options.

5. Hard Seltzers 

Hard seltzers continue to thrive, becoming a staple in the alcohol market. In 2023, the global hard seltzer market was valued at USD 18.97 billion and is projected to expand at a compound annual growth rate (CAGR) of 14.9% from 2024 to 2030. This growth is driven by increasing demand for low-alcohol beverages (as mentioned earlier), particularly among millennials and younger generations, who are fueling their rising popularity.

While initially popularized by millennials, hard seltzers have expanded their appeal across all age groups. Their low-calorie count, refreshing taste, and variety of flavors have made them a popular alternative to traditional beers and cocktails. As more brands innovate with new flavors and even offer craft versions, hard seltzers are expected to maintain their popularity well into 2025. 

6. Responsible Alcohol Server Training With TIPS 

While a bar or restaurant's bottom line needs to keep up with drink trends like craft gin and no/low-alcohol alternatives, some things never go out of style. Public safety restrictions around alcohol, like restricting sales to minors or intoxicated persons, will continue to be a liability issue for years to come. 

Whether responsible alcohol server training is legally mandatory where you are or not, it remains an excellent investment in protecting your business. TIPS Alcohol Safety Training courses equip your servers and managers with the skills they need to prevent illegal sales, promote responsible alcohol consumption, and protect your business from penalties and lawsuits. 

Enroll your staff today!