Key alcohol trends in 2025

Written by Feb 26, 2025Food and Beverage Media

In 2025, premiumisation, sustainability, and innovation are among 10 key trends that will drive huge change across the alcoholic beverage sector.

As we step into 2025, the liquor retail sector is poised to face a rapidly evolving landscape. Consumer behaviour is shifting, with new preferences emerging across all categories, from spirits to wine and beer. The following trends offer a window into what’s to come, providing key insights for those in the business of alcoholic drinks.

1. The ‘drink less, drink better’ mindset
In 2025, the growing preference for quality over quantity will remain a driving force. Economic pressures may tighten wallets, but Australian consumers are increasingly prioritising products that offer both superior taste and sustainability. As Darren De Bortoli, Managing Director of De Bortoli Wines, puts it, consumers will focus on “better” rather than “more”. The demand for premium, lower-alcohol, and health-conscious options will continue to rise, steering purchasing decisions toward quality-focused offerings.

2. Lighter, fresher flavours for social occasions
Kevin Mapson of Pernod Ricard Pacific highlights the shift towards lighter, fresher flavours, particularly in the context of earlier drinking occasions. With aperitifs, spritzes, and super-premium local sparkling wines trending, there’s a clear demand for beverages that align with relaxed, daytime social moments. Light RTDs will continue to thrive, offering a simple, enjoyable drinking experience that resonates with consumers looking for something more refreshing yet indulgent.

3. Innovation meets wellness
Consumers are becoming more health-conscious, seeking options that align with their lifestyle without sacrificing flavour. Mikkeli Han, CEO of Brewguru, notes that the trend toward premiumisation will persist, but with a twist: health-conscious innovation. Beverages with natural ingredients, lower sugar content, and functional benefits will be top of mind, with products catering to the growing demand for wellbeing in a bottle. This is particularly relevant in the RTD space, where functional ingredients like botanicals and real fruit are gaining traction.

4. Sustainability takes centre stage
Sustainability continues to be an overarching theme, both in production and consumer expectations. Michael Courtney, CEO of Coles Liquor, notes that while customers are committed to making environmentally friendly choices, practicality remains key. Sustainable packaging, responsible sourcing, and transparency in production will increasingly influence purchasing decisions. However, there will also be a demand for products that meet immediate needs – whether that’s convenience, taste, or social connection.

5. The rise of ‘Nostalgia Drinking’
Steve Donohue from Endeavour Group points to the enduring influence of nostalgia on drinking habits. Retro branding, vintage cocktails, and familiar flavours like lemon squash and creaming soda are making a strong comeback. Consumers are drawn to drinks that evoke memories of simpler times, creating an opportunity for brands to tap into this emotional connection. In 2025, expect more vintage-inspired drinks to make their way onto shelves, blending nostalgic flavours with modern twists.

Expect to see more vintage drinks and retro branding this year

 

6. The growth of the RTD category
RTDs will continue to dominate the market, outpacing other alcohol categories in growth. Gordon Treanor from Suntory Oceania highlights the impressive expansion of both light and dark RTDs, catering to consumers’ need for convenience and innovation. Flavour will remain a key differentiator, and as prices rise, consumers will seek more authentic and refreshing options. Innovations in packaging, ingredients, and formats will ensure RTDs stay relevant, particularly as younger consumers gravitate toward these easy-drinking alternatives.

7. Spirits: Premiumisation and simplicity
The spirits category is expected to see continued growth in premiumisation, with consumers increasingly gravitating towards higher-quality options. Tequila, once seen as a party spirit, is gaining recognition as a sophisticated drink, particularly in the premium category. Kevin Mapson’s prediction of a “cocktail moment” at home, with tequila-based products, is just one example of how consumers are evolving their drinking habits. However, simplicity remains important – pre-mixed cocktail packs and easy-to-use bundles will cater to consumers seeking convenience without compromising on quality.

8. The ‘less is more’ beer culture
Beer drinkers are becoming more discerning, and as Andrew McKay from Red Bottle suggests, we may see a rationalisation in the craft beer space. While there will always be a place for experimental brews, traditional styles of beer, such as craft lagers and pilsners, are making a comeback. This trend ties into the growing preference for lighter, easy-drinking beers that cater to a broad audience. Additionally, the low-carb movement will continue to resonate with consumers, driving demand for healthier beer options like Hahn Ultra Zero Carb and Victoria Bitter Low Carb.

Lighter-style beers are currently trending

 

9. Wine: A focus on light, fresh, and sustainable choices
The wine industry is not immune to these changes. As Catherine Wansink from New Zealand Winegrowers notes, consumers are looking for wines that are approachable, light, and fit easily into social occasions. The shift towards lighter, more refreshing wines will continue, with natural and organic wines gaining momentum. The emphasis on sustainability, coupled with a desire for authenticity, will fuel the demand for wines that reflect both their origins and their environmental footprint.

10. Value-driven offerings with a premium twist
Anthony Abdallah, CEO of Independent Liquor Retailers, emphasises that while consumers are value-driven, they’re also willing to pay a premium for unique, high-quality experiences. In 2025, retailers will need to balance affordability with exclusive promotions and product launches that generate excitement. The focus will be on creating value through tailored campaigns and offering products that resonate with specific consumer needs.

Looking ahead: A changing landscape
The alcoholic beverage industry is entering 2025 with a keen awareness of evolving consumer preferences. From health-conscious choices and light refreshing drinks to premium spirits and sustainable wine, retailers will need to be nimble and adaptive.

This dynamic environment presents an opportunity to embrace innovation while respecting the values that drive consumer decision-making.

In this rapidly shifting marketplace, success will come to those who can navigate these trends with foresight and adaptability, keeping their finger on the pulse of what consumers want – not just today, but tomorrow.

 

Photo credits: istock

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