1、Circana,LLC|For public use1State of the CPG Beverage Alcohol IndustryMarch 2024Circana InspireCircana,LLC|For public use2 2Circana,LLC|For public useCPG Beverage Alcohol|EXECUTIVE SUMMARYAs with non-alcohol beverages,beverage alcohol consumers are looking for variety.The youngest beverage alcohol co
2、nsumers,Gen Zs aged 21+,are driving innovation in flavor,format,and packaging.Read on for an update on the robust beverage alcohol market.GROWTH OPPORTUNITIESSoft drink brands extending into beverage alcohol crossover brands are trending,especially with younger consumers.Look for flavor preferences
3、to drive future innovation in this arena.Gen Zs aged 21+are reaching for ready-to-drink cocktails,which are often sold in convenient packaging,have higher alcohol content by volume and come from brands theyre already familiar with.Tap into Gen Z preferences in non-alcohol beverages for innovation in
4、spiration,including energy,fruit flavors,and even added benefits.Premium,which drove sales during the pandemic,is still trending in beverage alcohol,especially in premixed cocktails and seltzers.Look for ways to elevate offerings,including premium ingredients and packaging.Gen Zs aged 21+are driving
5、 innovation in flavor,format,and packagingDEMAND DRIVERSConsumers are looking for variety across all beverage types,with carbonated soft drinks,water,and sports/energy drinks gaining“share of sip.”Ready-to-drink cocktail and hard seltzer sales are softening,but these convenient products hold broad a
6、ppeal among age and household income cohorts.Inflation is easing across the store,but among all food and beverage departments,beverage alcohol saw the least inflation in recent years.Beer sales remain strong in the convenience channel.In the food channel,beverage alcohol,notably premix cocktails/coo