A trade war between two of the world’s largest consumer markets would cause significant disruption for consumers, retailers, and brands in Europe.

Brands and retailers are responding to shifts in alcohol consumption, particularly those of the growing Gen Z demographic as they establish habits and steer the industry’s future. With younger people drinking less and mid-level beverages waning in popularity, product diversification is becoming an even bigger business imperative.

Evolving consumer behavior and easing regulations are opening new pathways for long-term growth.

This year, we forecast US off-premise alcohol retail sales (i.e., alcohol purchased for at-home consumption) will grow by a modest 3.5% to $178.20 billion. This growth will accelerate slightly through 2027, driven by three areas of opportunity within the industry: ecommerce, customers willing to splurge on premium beverages, and at-home consumption trends.

Alcohol ecommerce is growing. See how alcohol purchase trends are shifting, who’s buying, and how to reach new customers.

The nonalcoholic beverage market has burst open, and many nonalcoholic spirits companies are pushing marketing beyond sobriety to overall health. “We’re not trying to stop anyone from drinking,” said Hebe Mills, marketing manager at Pentire Drinks. Instead, Mills says the alcohol-free brand is “making sure [our customers have] a really good-tasting alternative.”

Premixed cocktails are having a moment

Since stay-at-home orders were put in place, more adults in the US have significantly increased their alcohol purchases.