Premiumization, convenience, a generational shift in consumer preferences, and the influence of AI are profoundly shaping the direction of new product development and marketing strategies in the spirits industry, leading to the evolution of next-generation beverages, according to a new study by , a leading data and analytics company. The study, entitled: , explores the premiumization trend in the spirits market; how convenience is driving innovation across FMCG, including spirits; how Gen Z’s growing presence in the workforce and rising income levels make them a lucrative target for spirits brands; and the profound impact that AI-led innovations are expected to have on the future of the spirits industry. In the global beverages industry, the spirits market is expected to achieve a faster value (9.
4%) and volume (3.6%) CAGR over the next five years (2023-2028F) than all other beverage sectors such as Beer & Cider, Wines and Soft Drinks—with Spirits value CAGR projected to be more than double volume CAGR over the period. In recent years, the global beverages industry’s ‘Premium and Super Premium’ segments have posted strong positive volume growth globally, while the ‘Mainstream and Discount’ segments have experienced declines.
This premiumization trend is anticipated to maintain its momentum and continue to drive sector growth, as consumers are increasingly adopting a “drink less but drink better” outlook, seeking products that offer superior craftsmanship, un.