Even as online sales of alcohol continue to boom, changing the way we purchase, sample, and select our beverages, we’re noticing this especially as the pandemic began in March, forcing many consumers to purchase online. Before the pandemic, in 2019, only 19% of shoppers had ordered alcohol online. By 2020, that increased to 44%, and the percentages continued increasing in 2021.
The market continues to expand as well—from $64.55 billion in 2024, on track to get to $74.4 billion in 2025. This growth is more than a numbers game. It affects everything from store operations to brand communications with purchasers to what’s available to us as consumers.
Convenience Drives Delivery Demand
Expectation for rapid delivery has shifted consumer behaviors. More people prefer to receive their beer or wine at home, particularly since the pandemic established home delivery as a regular practice. Ordering through apps today takes just a few taps.
Even once lockdowns were lifted, this routine remained. Now more than ever, brands are competing to be on these faster, easier shopping channels.
How Online Sales Change Choices
Online sales provide massive selection. Whether it’s a niche brand or limited run you can’t find at retail, e-commerce opens up all kinds of new availability. Reviews and ratings are important, as well.
Consumers rely on them to inform their choices. This puts pressure on local shops that may not match online selection, but it helps smaller brands reach new fans.
Third-Party Apps vs. Direct Sales
Third-party apps provide broad reach, but brands pay hefty fees and cede some control of the buyer’s journey. Direct sales through a brand’s own website eliminate those fees and create direct relationships with customers.
Some consumers like another method. Some consumers even use both, based on who offers the best price or the fastest delivery time. There are benefits and drawbacks to brand and consumer alike to each of the channels.
Sustainability and Ethics Matter More
In the consumer alcohol market, we’ve reached a point where consumers are increasingly concerned about where drinks come from and how they’re produced. You find a deep commitment from consumers and a loud call to action for brands to continue down the path of sustainable and equitable business practices. Consumers are looking for less waste, easier-to-understand labels, and tangible evidence that brands are truly committed to their claims.
These days, nearly every brand—large and independent—incorporates recycled glass, reduces water usage and utilizes renewable energy sources. They discuss where they source their grain or their grapes from, or how they pay their workers. This paradigm change goes beyond the environmental sustainability movement. It’s really about trust, actually. When you see a brewery use wind power or a distillery share its farm sources, you start to believe in their promise.
A few brands really do shine. In Germany, Berliner Kindl not only uses refillable bottles but partners with local farms. At home in the U.S., New Belgium Brewing is powered by wind, diverts 99% of its waste from landfills, and donates 1% of sales to nonprofits. These moves go a long way with consumers, particularly millennial homebuyers in urban areas.
Whether they are shopping in-person or online, consumers search for the “organic” seal, fair trade symbols, or just the basic information on the back label. Evidence suggests that consumers remain loyal to companies that remain committed to these principles.
There are difficult realities. That’s the problem with more than 99% of industry CSR—there’s no real evidence that it works, as is the case with drunk driving. As the Friedmanites love to tell us, a company’s only responsibility is to its shareholders. Buyers are looking for something more.
They want brands to take responsibility for their influence—on health, on the planet, on individuals. Today’s market is defined by warning labels, clearly established rules, and a raft of new green measures.
Future Gazing: What’s Next?
Looking forward, you and I both share an exciting and developing vision of a market that’s pivoting quickly. Brands must be able to interpret these changes and move fast. As people re-evaluate how, when, and why they drink, the entire landscape of the industry begins to shift.
From new laws to wild tech and new tastes, the next few years will take sharp moves and smart choices.
Anticipating Market Challenges Ahead
At the moment, additional regulations and taxation would disproportionately affect certain brands, complicating their ability to maintain prices. With stricter regulations around advertising and new health warnings, the tactics of the past aren’t going to be enough to sell.
People want healthier options, or at least less alcohol. Younger drinkers, both here in the U.S. Across Europe, are making the switch to non-alcoholic beverages—sales increased by 32% last year. While flavored whiskeys and RTDs are gaining tremendous popularity, the market is raising the bar for something truly new and different.
Competition from non-alcoholic brands has created a challenge in retaining legacy customers. If we want to remain competitive, we need to adapt and innovate. The Caprese Martini, dubbed 2024’s Drink of the Year, is a testament to people’s craving for bold flavors and fresh ingredients.
Spotting Growth Opportunities Now
Premium spirits, creative cocktails and RTDs are all making their mark. Premium spirits are literally on fire—41% of younger U.S. Drinkers actively seek them out, and ultra-premium spirits were up nearly 7% last year.
Flavored whiskeys and fun cocktails, such as the Caprese Martini, attract a younger demographic. Companies that change their ingredients or partner with unique collaborators can capture new audiences. Both RTDs and super premium spirits are growing in double digits, supported by evolving preferences and aging demographics.
Technology’s Role in Tomorrow’s Drinks
Smart technology allows us to get a good pulse on what people are looking for, what they’re shopping for. Analyzing consumer data gives brands the ability to quickly create new drinks and fine-tune advertisement strategies.
E-commerce continues to expand, and AR or VR offer consumers the ability to experience products virtually before purchase. These tech solutions help level the playing field for brands to get in front of buyers and stay ahead of what’s coming down the pipe.
Conclusion
When I look at the alcohol consumption market today, I see tremendous change and genuine consumer choice. You should have choices that suit your palate, your aesthetic, your budget. I love finding bars or liquor stores that have a larger alcohol consumption market than I’m used to back home. They’re well aware that we give a damn about where and how our drinks are produced. Hard-to-find local craft cans or interesting low-alcohol picks are just a click away. You can’t miss the new brands that emerge, all with their unique take on it. Younger people focus on low-to-no alcohol, older people on brand loyalty. Every shift still carries a lot of weight in determining what you see on shelves. In order not to miss out, be adventurous and demand the best. Have an opinion on what’s coming next. Talk to us, and be part of building a new music ecosystem.
