US Trending Flavors and Ingredients in Alcoholic Beverages Market Report 2020
$4,995 (Excl.Tax)
Description
“Alcoholic beverages provide excitement, experience and relaxation for consumers and each of these drivers have become particularly salient because of COVID-19 and the subsequent recession. The category as a whole has seen a sales boost; yet to maintain momentum, brands must innovate for long-term growth. Consumers are interested in new and emerging flavors, but are a bit habitual in consumption behavior indicating that consumers need a nudge to continue flavor and product exploration.”
– Alyssa Hangartner, Flavor and Ingredient Trends Analyst
This report will look at the following areas:
- The impact of COVID-19 on consumer behavior and the alcoholic beverages market
- Flavor innovation opportunities
- Attitudes and behaviors regarding alcoholic beverage flavors
- Current and future flavor trends within the category
Table of Contents
-
Overview
- What you need to know
- Key issues covered in this Report
- Definitions
- COVID-19: market context
- What you need to know
-
Executive Summary
-
- Top takeaways
- Market overview
- Figure 1: Total US sales of alcoholic beverages, by location of consumption, at current prices, 2014-19
- Impact of COVID-19 on alcoholic beverages
- Figure 2: Short-, medium- and long-term impact of COVID-19 on alcoholic beverages, August 2020
- Challenges and opportunities
- Reemergence
- Figure 3: Alcoholic beverage attitudes and behaviors, May 2020
-
- Figure 4: Experience or interest in tier 2 flavors, May 2020
- Recovery
- Innovate for the next generation of drinkers
- Figure 5: Better for you alcoholic beverage innovation, by age, May 2020
- Shifting channel changes will accelerate
-
-
Market Landscape – What You Need to Know
- Small segment of young consumers drives RTD growth
- COVID-19 has significantly altered alcoholic beverage behaviors
- Consumers are looking for healthier improvements in the category
- Small segment of young consumers drives RTD growth
-
State of the Market
- Growth steady across the category, wine falling behind spirits in sales
- Figure 6: Total US sales and forecast of alcoholic beverages, by type of alcoholic beverage, at current prices, 2014-19
- Figure 7: Share of US sales of alcoholic beverages, by location of consumption, at current prices, 2014-19 (est)
- Wine-based RTDs fall behind, but foodservice trends point to resurrection
- Figure 8: Percentage change in US sales volume, 2015-19
- Figure 9: Percentage change in alcoholic beverage type on US menus, Q4 2015-19
- Soaring innovation in flavored alcoholic beverages increases risk for oversaturation
- Figure 10: Percentage change in new alcoholic beverage launches, 2015-19
- Flavor innovation concentrated in tropical fruit flavors
- Figure 11: Percentage change in new alcoholic beverage products, by flavor, 2017-19
- Impact of COVID-19 on alcoholic beverages
- Figure 12: Short-, medium- and long-term impact of COVID-19 on alcoholic beverages, July 2020
- Lockdown
- Reemergence
- Recovery
- COVID-19: US context
- Learnings from the last recession
- Figure 13: Total US alcoholic beverage sales, 2004-14
- Figure 14: Unemployment, recession versus pandemic, Dec 2007-May 2009 and Dec 2018-May 2020
- Growth steady across the category, wine falling behind spirits in sales
-
Market Factors
- On-premise alcohol faces greatest recovery challenge
- Figure 15: Comfort level related to foodservice establishment activities, July 28-Aug 4, 2020
- A third of consumers are loyal to a few varieties
- Figure 16: Repertoire of alcohol varieties consumed, May 2020
- RTD consumption limited to highly engaged consumers
- Figure 17: Alcohol varieties consumed, by repertoire of alcohol varieties consumed, May 2020
- A sober outlook for future generations
- Figure 18: Interest in alcoholic beverage innovation, by generation, May 2020
- On-premise alcohol faces greatest recovery challenge
-
Market Opportunities
- Prior to the pandemic, foodservice brought cocktails back to their roots
- Figure 19: Alcoholic beverage attitudes and behaviors, by generation, May 2020
- Figure 20: Percentage change of classic cocktails on US menus, Q4 2015-19
- BFY innovation will engage the next generation of drinkers
- Figure 21: Better for you alcoholic beverage innovation, by age, May 2020
- Shifting channel changes will accelerate
- Figure 22: Behaviors due to COVID-19, August 12-21, 2020
- Prior to the pandemic, foodservice brought cocktails back to their roots
-
Companies and Brands – Key Takeaways
- Recent flavor innovation falls within tropical fruit families
- Flavor innovation introduces certain varieties to new occasions
- Cutting-edge fruit flavors fare well due to their familiar foundation
- Recent flavor innovation falls within tropical fruit families
-
Product Development – Now – Current Flavor Trends
- RTD cocktails offer convenient flavor exploration
- Figure 23: Alcoholic beverage varieties, by age, May 2020
- Tropical flavors thrive among seasonal beverages
- Figure 24: Interest and experience with tropical alcoholic beverage flavors, May 2020
- RTD cocktails offer convenient flavor exploration
-
Product Development – Near – What to Watch For
- Seltzer after dark
- Coffee with a kick
- Figure 25: Interest and experience with coffee as an alcoholic beverage flavor, by age and gender, May 2020
- Floral flavors pique interest among Gen Z and bloom in foodservice
- Figure 26: Future interest in floral alcoholic beverage flavors, by generation, May 2020
- Figure 27: Percentage change in floral alcoholic beverage flavors on US menus, Q4 2015-19
- Seltzer after dark
-
Product Development – Next – What’s in the Pipeline
- Push the boundaries of familiar fruit flavors
- Figure 28: Interest and experience with emerging fruit flavors, May 2020
- Under 35s driving demand for healthier innovation
- Figure 29: Alcoholic beverage innovation interest, by age, May 2020
- Savory flavors layer in added complexity, tone down sweetness
- Figure 30: Interest and experience with savory alcoholic beverage flavors, May 2020
- Push the boundaries of familiar fruit flavors
-
The Consumer – Key Takeaways
- Occasion has a strong impact on beverage selection
- Flavor innovation paired with convenience will hold greatest appeal
- Next generation consumers drive demand for better-for-you options
- Occasion has a strong impact on beverage selection
-
Flavor Exploration in Alcoholic Beverages
- New flavor trial is based on convenient exposure
- Figure 31: Willingness to try new flavors in alcoholic beverages, May 2020
- Interest in flavor exploration increases with income, declines with age
- Figure 32: Interest in new flavors, by age and income, May 2020
- Residential area impacts flavor exploration
- Figure 33: Interest in trying new flavors, by area, May 2020
- New flavor trial is based on convenient exposure
-
Alcoholic Beverages Consumed
- Top alcoholic beverage varieties reflect variety and convenience
- Figure 34: Go-to alcoholic beverage varieties, May 2020
- Flavor innovation can help varieties overcome gender divide
- Figure 35: Percentage share of alcoholic beverage variety consumption, by gender, May 2020
- Niche varieties rely on a young consumer base
- Figure 36: Percentage share of alcoholic beverage variety consumption, by age, May 2020
- Engagement in the category declines with age
- Figure 37: Repertoire of alcohol varieties, by generation, May 2020
- Top alcoholic beverage varieties reflect variety and convenience
-
Alcoholic Beverage Attitudes and Behaviors
- Consumers look for simplicity for at-home alcohol
- Figure 38: Alcohol attitudes and behaviors, May 2020
- Adventurous consumers are appreciating the classics
- Figure 39: Alcohol attitudes and behaviors, by new flavor trial, May 2020
- Alcoholic beverage selection is often spontaneous
- Figure 40: Alcoholic beverage attitudes – Net – Any agree, July 2019
- Daypart has greatest impact on RTD beverages
- Figure 41: Alcoholic beverage attitudes, by variety consumed, May 2020
- Consumers look for simplicity for at-home alcohol
-
Now – Primary Alcoholic Beverage Flavors
- Consumers enjoy variety when it comes to current flavors
- Figure 42: Go-to alcoholic beverage flavors, May 2020
- Ground your flavor portfolio in fruit flavors
- Figure 43: TURF analysis – Go-to flavors, May 2020
- Gen Zs dabble in the broadest array of go-to flavors
- Figure 44: Go-to flavors, by generation, May 2020
- Consumers enjoy variety when it comes to current flavors
-
Near – Interest and Experience in Alcoholic Beverage Flavors
- Trial of Tier 2 flavors is budding, and interest is strong
- Figure 45: Interest and experience with emerging alcoholic beverage flavors, May 2020
- Interest in flavors is also influenced by gender
- Figure 46: Interest and experience with emerging flavors, by gender, May 2020
- Increase engagement of over 55s through sophisticated offerings
- Figure 47: Interest in emerging alcoholic beverage flavors by age, May 2020
- Trial of Tier 2 flavors is budding, and interest is strong
-
Next – Interest and Experience in Alcoholic Beverage Flavors
- Interest in emerging flavors points to openness to explore
- Figure 48: Interest and experience with emerging flavors, May 2020
- Gen Zs, Millennials lead future flavor interest, but don’t discount the rest
- Figure 49: Interest and experience with emerging alcoholic beverage flavors, by generation, May 2020
- Interest in emerging flavors is amplified among spirit and RTD consumers
- Figure 50: Interest in emerging alcoholic beverage flavors, by variety consumed, May 2020
- Interest in emerging flavors points to openness to explore
-
Interest in Alcoholic Beverage Innovation
- Seasonal flavors are a fan favorite, sugar is still a top concern
- Figure 51: Interest in alcoholic beverage innovation, May 2020
- Improvements on current alcohol ingredients capture widest reach
- Figure 52: TURF analysis – Alcoholic drink attributes, May 2020
- Sugar and alcohol reduction interest varies by generation
- Figure 53: Alcoholic beverage innovation interest by generation, May 2020
- RTD consumers display strongest interest in overall future innovation
- Figure 54: Alcoholic beverage innovation, by variety, May 2020
- Seasonal flavors are a fan favorite, sugar is still a top concern
-
Appendix – Data Sources and Abbreviations
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Data sources
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
Below is a sample report, understand what you are buying.
Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.
Trusted by companies. Big and small.
