The alcohol industry of 2024 finds itself in a tight spot. A potent combination of inflation, interest rates, trade tensions and COVID aftershocks has rocked recognizable brands, leading to a series of gloomy earnings results as distillers reconsider their prospects. Young people are drinking less than they have in decades while older consumers are sticking by tried-and-true favorites.
Now more so than ever, the industry is looking for ways to innovate.
With 2025 on the horizon, we're taking a look at seven ways that alcohol producers are attempting to recapture lightning in a bottle. The days of hard seltzers and craft beer are firmly behind us; next year, we expect internationally sourced spirits, low-alcohol products, and transparency to take the spotlight.
Celebrity No- and Low-Alcohol
(Photo: BERO)
Celebrity alcohol trends go through boom and bust cycles as liquor store shelves become overstuffed with contenders. A wave of vodkas and cognacs vied for our attention in the 2000s; in the 2010s, tequila reigned supreme. The last few years have seen a rapid rise in celebrity-owned pre-mixed cocktails, but even that craze has begun to overstay its welcome. So what's next?
If we had to bet, no- and low-alcohol products will be the next A-list fixation. Rallying cries like Dry January have brought enormous interest to the category, especially so among Gen Z consumers who are following their favorite star's every move on social media. Proudly sober celebrities like actor Tom Holland and F1 racer Lewis Hamilton have now found ways to capitalize on the zeitgeist. In the absence of tight competition, celebrity-backed nonalc products are primed to have a big moment in 2025. That is, before the genre inevitably becomes oversaturated and the next best thing arrives.
Soju
[caption id="attachment_95354" align="aligncenter" width="600"] (Photo: Jinro)[/caption]
Few Americans know that the most popular spirit brand in the world is Jinro, a Korean soju that sold 97.4 million cases in 2023. That's more than the total sales of Johnnie Walker, Jack Daniel's, Jose Cuervo, Jim Beam and Smirnoff, combined — plus a few million cases to spare.
The liquor, usually made from fermented grain, is a crisp neutral spirit with an alcohol content around half that of a typical vodka. The drink is as ubiquitous in East Asia as it is versatile, perfect for remixing in beverages with a rainbow assortment of flavors (Jinro's most popular are plum and green grape; up-and-comer Jumo offers twists like pear, lychee and yuja). Trends suggest that the American market may be the next frontier.
Thanks in part to cultural exports like K-pop and K-dramas, soju has found its way onto 30% more menus in the U.S. over the past four years. Demand is projected to reach a market value of over $425 million in 2031, nearly double that of its current standing. As consumers trade malt-based beverages for spirits-based cocktails, soju is primed to sweep the market in myriad flavors that American brands have yet to experiment with.
American Single Malt Whiskey
[caption id="attachment_95355" align="aligncenter" width="600"] (Photo: Westland Whiskey)[/caption]
Following years of back and forth with regulatory authorities, American Single Malt was finally ratified as an official whiskey category earlier this month. For brands that have been distilling the spirit since their inception, it's a long-awaited Hail Mary that brings validity and quality control to the label. For brands that are just getting in on the game, it's an opportunity to capitalize on one of the most in-demand trends among spirits enthusiasts.
American Single Malt must be distilled to 160 proof or less in the U.S., produced at one distillery using 100% malted barley and stored in oak barrels no larger than 700 liters. The rules — akin to a designation of origin for Mexican tequila or French champagne — are slated to take effect next January. If you're hoping to explore the options, we'd highly recommend brands like Westward and Balcones.
AI Integration
[caption id="attachment_94957" align="aligncenter" width="600"] (Photo: Hennessy)[/caption]
AI-related shenanigans are finding their way into every industry from car manufacturing to cookies, and spirits are no different.
Hennessy recently unveiled a limited-edition decanter splashed up with generative art by a robotic arm; Absolut Vodka celebrated "inclusivity" with an ad campaign designed by AI from head to toe; Beck's Beer upped the ante with the first completely machine-created beer in the world. Dictador, the oldest rum brand in Columbia, just appointed a human-like AI robot dubbed Mika as its latest CEO. She's been known to pick fights with Mark Zuckerberg and Elon Musk on Twitter.
Spaghetti is being thrown at the wall left and right, and much of it is unlikely to stick. But that AI spaghetti sure isn't going anywhere anytime soon. Especially with hybrid spirits-NFT platforms like BlockBar on the rise, the industry will continue to explore the possibilities until it can find a marketable niche.
High-Proof Tequila
[caption id="attachment_95357" align="aligncenter" width="600"] (Photo: Tequila Ocho)[/caption]
The tequila boom of the late 2010s shows no sign of slowing down. Initially spearheaded in large part by celebrities, the category has since evolved into its "mature" phase by way of the additive-free movement and growing interest in old-school production methods.
Now, consumers are asking for tequila that's proofed higher than the near-ubiquitous 40% ABV. Those of us who appreciate a little scorch were blessed with an abundance of releases this year from fantastic names like Santo Spirits, El Tequileno and Mijenta, many of whom have promised to keep up the momentum with spicier, higher-proofed products in years to come. Whether you're mixing cocktails or sipping on the rocks, these decidedly gourmet tequilas have all the staying power to redefine agave within the upper echelon of truly premium spirits.
Estate Distilling
[caption id="attachment_95804" align="aligncenter" width="600"] (Photo: Minden Hill Distilling/Facebook)[/caption]
Within the vast framework of alcohol production, you'll often find spirits that are grown in one place, distilled in another and barrel-aged in a third. Estate distilling hopes to streamline the process with a few less steps.
Agave brands like Tequila Ocho and whiskeys like Minden Hill have championed the technique, commonly referred to as "farm-to-bottle" or "grain-to-glass." The biggest advantage is the control over terroir, allowing distillers to create a spirit that can embody regional influences whether they be grain, water type or weather conditions. Originally pioneered by smaller brands, the process is now being adopted by big names like Mount Gay, Heaven Hill and Maker's Mark.
Sustainable Packaging
[caption id="attachment_85989" align="aligncenter" width="600"] (Photo: Diageo)[/caption]
Supply chain issues in late 2021 temporarily forced heavy hitters like Jack Daniel's and Jim Beam to abandon glass in favor of plastic. Though the shortage came and went, many of the industry's biggest names have continued to invest in alternatives.
Whether it be recyclable glass, paperboard containers or aluminum bottles, sustainability has become the name of the game for distillers hoping to follow through on their eco-friendly mission statements. However, this trend is very much in its early phase — apart from a handful of outliers like De Nada Tequila, few brands have committed full tilt to totally revamping their packaging. As juggernauts like Diageo invest heavily in the movement, 2025 may become the first year that household names make the jump and never go back.
[callout-app-promo]
(Photo: Jinro)[/caption]
Few Americans know that the most popular spirit brand in the world is Jinro, a Korean soju that sold 97.4 million cases in 2023. That's more than the total sales of Johnnie Walker, Jack Daniel's, Jose Cuervo, Jim Beam and Smirnoff, combined — plus a few million cases to spare.
The liquor, usually made from fermented grain, is a crisp neutral spirit with an alcohol content around half that of a typical vodka. The drink is as ubiquitous in East Asia as it is versatile, perfect for remixing in beverages with a rainbow assortment of flavors (Jinro's most popular are plum and green grape; up-and-comer Jumo offers twists like pear, lychee and yuja). Trends suggest that the American market may be the next frontier.
Thanks in part to cultural exports like K-pop and K-dramas, soju has found its way onto 30% more menus in the U.S. over the past four years. Demand is projected to reach a market value of over $425 million in 2031, nearly double that of its current standing. As consumers trade malt-based beverages for spirits-based cocktails, soju is primed to sweep the market in myriad flavors that American brands have yet to experiment with.
(Photo: Westland Whiskey)[/caption]
Following years of back and forth with regulatory authorities, American Single Malt was finally ratified as an official whiskey category earlier this month. For brands that have been distilling the spirit since their inception, it's a long-awaited Hail Mary that brings validity and quality control to the label. For brands that are just getting in on the game, it's an opportunity to capitalize on one of the most in-demand trends among spirits enthusiasts.
American Single Malt must be distilled to 160 proof or less in the U.S., produced at one distillery using 100% malted barley and stored in oak barrels no larger than 700 liters. The rules — akin to a designation of origin for Mexican tequila or French champagne — are slated to take effect next January. If you're hoping to explore the options, we'd highly recommend brands like Westward and Balcones.
(Photo: Hennessy)[/caption]
AI-related shenanigans are finding their way into every industry from car manufacturing to cookies, and spirits are no different.
Hennessy recently unveiled a limited-edition decanter splashed up with generative art by a robotic arm; Absolut Vodka celebrated "inclusivity" with an ad campaign designed by AI from head to toe; Beck's Beer upped the ante with the first completely machine-created beer in the world. Dictador, the oldest rum brand in Columbia, just appointed a human-like AI robot dubbed Mika as its latest CEO. She's been known to pick fights with Mark Zuckerberg and Elon Musk on Twitter.
Spaghetti is being thrown at the wall left and right, and much of it is unlikely to stick. But that AI spaghetti sure isn't going anywhere anytime soon. Especially with hybrid spirits-NFT platforms like BlockBar on the rise, the industry will continue to explore the possibilities until it can find a marketable niche.
(Photo: Tequila Ocho)[/caption]
The tequila boom of the late 2010s shows no sign of slowing down. Initially spearheaded in large part by celebrities, the category has since evolved into its "mature" phase by way of the additive-free movement and growing interest in old-school production methods.
Now, consumers are asking for tequila that's proofed higher than the near-ubiquitous 40% ABV. Those of us who appreciate a little scorch were blessed with an abundance of releases this year from fantastic names like Santo Spirits, El Tequileno and Mijenta, many of whom have promised to keep up the momentum with spicier, higher-proofed products in years to come. Whether you're mixing cocktails or sipping on the rocks, these decidedly gourmet tequilas have all the staying power to redefine agave within the upper echelon of truly premium spirits.
(Photo: Minden Hill Distilling/Facebook)[/caption]
Within the vast framework of alcohol production, you'll often find spirits that are grown in one place, distilled in another and barrel-aged in a third. Estate distilling hopes to streamline the process with a few less steps.
Agave brands like Tequila Ocho and whiskeys like Minden Hill have championed the technique, commonly referred to as "farm-to-bottle" or "grain-to-glass." The biggest advantage is the control over terroir, allowing distillers to create a spirit that can embody regional influences whether they be grain, water type or weather conditions. Originally pioneered by smaller brands, the process is now being adopted by big names like Mount Gay, Heaven Hill and Maker's Mark.
(Photo: Diageo)[/caption]
Supply chain issues in late 2021 temporarily forced heavy hitters like Jack Daniel's and Jim Beam to abandon glass in favor of plastic. Though the shortage came and went, many of the industry's biggest names have continued to invest in alternatives.
Whether it be recyclable glass, paperboard containers or aluminum bottles, sustainability has become the name of the game for distillers hoping to follow through on their eco-friendly mission statements. However, this trend is very much in its early phase — apart from a handful of outliers like De Nada Tequila, few brands have committed full tilt to totally revamping their packaging. As juggernauts like Diageo invest heavily in the movement, 2025 may become the first year that household names make the jump and never go back.
[callout-app-promo]