Low/No Alcohol, RTDs, and Premiumization: Top Alcohol Industry Trends for 2025

The alcoholic beverage industry is evolving quickly, and 2025 is set to be a defining year for key trends. Among the most impactful shifts are the rise of low/no-alcohol drinks, the explosion of ready-to-drink (RTD) cocktails, and the continued premiumization of spirits and other beverages. Consumer preferences are changing due to health consciousness, demand for convenience, and a willingness to spend more on quality.

In this post, we break down these top alcohol industry trends for 2025, exploring what’s driving them and how suppliers and brands can respond.

Low & No-Alcohol Beverages Surge in Popularity:

Top Alcohol Industry Trends for 2025

“Sober curious” and moderation movements have gone mainstream, leading to a boom in low-alcohol and non-alcoholic beverages. More consumers (especially millennials and Gen Z) are embracing alcohol-free options for health, wellness, or simply to try new flavors without the buzz. As a result, breweries, wineries, and distilleries are introducing zero-proof or low-ABV versions of beers, wines, and spirits to meet this growing demand.

The numbers tell a compelling story: Across major global markets, no- and low-alcohol volumes are forecast to grow about 4% annually from 2024 to 2028, with the no-alcohol segment leading at +7%. In the United States, consumer surveys show nearly half of adults are actively trying to drink less and view moderate drinking as part of a healthier. This has fueled a $510 million U.S. market for non-alcoholic beer, wine, and spirits, which spiked 31% in sales last.

What’s driving the low/no-alcohol trend? Firstly, health and wellness concerns: people are more mindful about calories, sugar, and overall alcohol intake. Products like non-alcoholic IPAs, alcohol-free spirits (gin alternatives, etc.), and mocktail concoctions allow consumers to socialize with a drink in hand minus the alcohol. Secondly, improved product quality has made it easier to cut back—today’s alcohol-free beers and spirits taste much closer to the real thing thanks to better brewing and distilling technology. Finally, there’s a cultural shift: choosing a non-alcoholic craft beer or mocktail is increasingly seen as trendy and socially acceptable, not boring.

For brands, investing in no/low-alcohol options is a key opportunity in 2025. Big brewers have launched non-alcoholic versions of flagship beers, and craft producers are getting creative with botanical-infused zero-proof spirits. Bars and restaurants are also expanding their zero-proof cocktail menus. This trend isn’t about eliminating alcohol entirely, but offering more choices for moderation. Alcohol companies that diversify their portfolio with tasty low-ABV or zero-ABV offerings can attract health-conscious consumers while keeping them in the brand family.

RTD Cocktails Redefine Convenience:

Top Alcohol Industry Trends for 2025

The ready-to-drink (RTD) cocktail category is exploding and reshaping the beverage landscape. RTDs include canned cocktails, hard seltzers, spiked lemonades, and other pre-mixed drinks. In recent years, they’ve been one of the fastest-growing alcohol segments. According to IWSR, RTDs were the only major alcohol category to grow in volume in 2023 (+2%), along with a 6% increase in. This momentum is expected to continue into 2025 as consumers seek out convenient, high-quality drinks they can enjoy anytime, anywhere.

The appeal of RTDs lies in their ultimate convenience: grab-and-go cocktails require no bartending skills and no extra ingredients. Busy consumers appreciate the ability to enjoy a craft-quality margarita or whiskey cola straight from the can. And unlike the sugary alcopops of the past, today’s RTDs often boast premium ingredients and authentic flavors, elevating them to a more sophisticated choice. We’ve seen a surge in innovations like barrel-aged classic cocktails in a can, craft brewery hard seltzers with real fruit, and collaborations where distillers partner with bartenders to can signature recipes.

Market data underscores the craze. In the US, hard seltzers kicked off the RTD wave with astronomical growth a few years ago, and now spirit-based RTDs are following suit. One striking example: a canned hard iced tea brand, Surfside, sold 1.3 million cases in 2023 – a 563% increase from its debut. Even more impressive, this growth happened initially in just a handful of states before the brand expanded distribution nationwide. Stories like this show how quickly a trending RTD can scale when it resonates with consumer tastes.

Drivers of the RTD trend include innovation and variety. Consumers love exploring new flavors (think grapefruit Palomas, cucumber gimlets, or bourbon peach tea in a can) and appreciate options that fit different lifestyles. There are light, low-calorie RTDs for the wellness-focused, bold high-ABV canned cocktails for craft cocktail enthusiasts, and everything in between. The pandemic also played a role: with bars closed or capacity limited, many turned to RTDs for a cocktail experience at home, and that habit stuck.

In 2025, brands across the spectrum are investing heavily in RTDs. Major spirits companies are canning their famous brands into ready-to-drink formats (rum & coke, gin & tonic, etc.), often highlighting name-brand mixers or quality cues. Craft distilleries and breweries are joining in with regional or artisanal twists on canned cocktails. Retailers are dedicating more shelf space to RTDs as consumer demand stays hot. We can expect continued diversification of RTD offerings, including more non-alcoholic mocktail RTDs (connecting with the low/no trend) and perhaps functional ingredients or unique flavor fusions.

To stand out, brands will need to emphasize quality, flavor, and branding that captures the “cool factor” of convenient cocktails in a can.

Premiumization: “Drink Less, Drink Better”

The third big trend shaping 2025 is premiumization – consumers gravitating toward higher-end products and willing to pay more for quality. Even as some drinkers reduce alcohol consumption by volume, they are choosing to spend more on premium and craft beverages for an elevated experience. This trend is evident across categories, from luxury tequilas and small-batch whiskeys to craft beers and fine wines. The idea is to “drink less, but drink better.”

Industry data shows that market growth in many regions is driven more by price increases and trade-up, rather than sheer. For example, the US alcohol market’s value has been climbing despite flat or declining overall consumption, precisely because consumers are opting for pricier. Premium-and-above spirits have been outpacing value brands in growth. And in emerging markets with rising middle classes, many new drinkers are skipping mass-market products and jumping straight into aspirational premium.

Several factors fuel premiumization. Evolving consumer tastes play a big role, today’s buyers, especially millennials, seek authenticity, craftmanship, and unique stories behind their beverages. They might be drawn to a single vineyard Napa Cabernet, a single barrel bourbon, or a small-batch mezcal made by traditional methods. This supports a willingness to pay a higher price for perceived better quality or exclusivity. Social media and connoisseur culture also encourage premiumization: rare whiskies and limited-release craft beers gain hype online, creating a “collectible” mindset in some consumers.

Another driver is that since people are, on average, drinking a bit less quantity for health reasons, they justify spending more on each drink. The mindset is, “If I’m only having one or two drinks, I’ll make it count.” This has benefitted categories like ultra-premium spirits, craft cocktails, and high-end RTDs, which promise a top-tier experience. Even during times of economic uncertainty, segments of consumers continue to splurge on affordable luxuries in alcohol, splitting a $50 bottle of barrel-aged stout or investing in a nice single malt scotch, for instance.

In 2025, expect premiumization to continue but with nuances. Some reports suggest that while premium segments will grow, extremely high-end categories may see a slight slowdown if economic challenges. Interestingly, premiumization isn’t just about spirits and wine, beer is premiumizing too. Craft and import beers, as well as new styles like hazy IPAs, command higher prices relative to light lagers, and consumers are showing they’ll pay for flavor. In fact, premium-plus beer and cider saw volume growth in early 2024, even as premium spirits and wine volumes dipped. This suggests drinkers might occasionally trade down from liquor to a fancy beer as a cost-conscious form of “premium.”

For brands and retailers, capitalizing on premiumization means emphasizing quality and storytelling. Brands should highlight what makes their product special, be it ingredients, process, heritage, or innovation. Many producers are releasing “reserve” or aged variants and collaborating on limited editions to capture enthusiasts’ attention. Retailers, on the other hand, can cater to premium-seeking customers by curating top-shelf selections, training staff to convey product stories, and even hosting upscale tasting events. It’s also wise to watch price sensitivities; offering a range of premium options at different price points (good, better, best tiers) can help include more consumers in the trade-up trend.

Looking Ahead

In summary, low/no alcohol, RTDs, and premiumization are three powerhouse trends set to shape the alcohol industry in 2025. They reflect broader themes of health consciousness, convenience, and consumer premiumization that are likely to persist throughout the decade.

Brands that adapt to these trends stand to gain significant market share:

• Embrace the low/no-alcohol movement by developing quality non-alcoholic or low-ABV products and marketing them as part of a balanced lifestyle.

• Innovate in the RTD category, leveraging brand strengths to deliver convenient yet authentic drinking experiences in a can.

• Continue to premiumize offerings and brand storytelling to appeal to consumers seeking quality over quantity.

In Conclusion: Top Alcohol Industry Trends for 2025

It’s an exciting time in the beverage world. The industry in 2025 will offer more choices than ever to consumers, whether they want a booze-free craft cocktail, a canned espresso martini on-the-go, or a top-shelf tequila to savor. For businesses, staying on top of these trends is crucial. By understanding what’s driving low/no alcohol popularity, why RTDs are flying off shelves, and how premiumization is evolving, companies can make strategic moves to thrive in a market defined by both moderation and indulgence.