It is vital for every business owner to have their finger on the pulse of industry trends. Staying on top of emerging developments in the industry as well as changing tastes and preferences of the buying public puts your business ahead of the competition. No matter what you provide, whether it‘s consumer goods, services, food, or beverages, understanding what affects the demand for your products and responding to those changes is how you stay profitable.
For the third year, Drizly has produced their annual BevAlc Insights by Drizly Retail Report that gives insight into what's coming for the industry in 2022. They analyze trends that retailers have observed combined with sales data from 2021 and previous years. As we prepare to bid adieu to 2021, let's look forward to some of the upcoming BevAlc industry trends 2022.
Natural, organic, locally sourced: all of these terms have dominated food and beverage markets in recent years and show no sign of slowing. The pandemic heightened consumer awareness of the need to take care of their health. That desire has spilled over into the BevAlc industry with demand for healthier options in their adult beverages.
In Drizly's survey, 66% of retailers plan to stock more locally made beverages, which could also be spurred by supply chain issues. 60% of retailers feel organic and natural options will influence their buying decisions significantly. This is particularly true for wine, though there are also beer and spirits in this category. Retailers expect to reserve more shelf space for natural and organic options in the coming year. Similarly, GlobalData's Q3 2021 survey shows that 55% of consumers find natural alcoholic beverages to be very appealing, while 40% were attracted to organic labels.
Natural and organic aren't the only trends with a nod to health consciousness. Consumers are more interested in non-alcoholic versions of traditional drinks like beer and wine. The trend is so prevalent that non-alcoholic wine and beer are up by 300% and 200% respectively.
90% of Drizly's retail partners responded that they stock at least one no-ABV option. This is a trend that 26% of respondents believe has the greatest growth potential, supported by steady growth in recent years. The post-holiday season traditionally sees a surge in no-ABV purchases after the indulgence of the preceding months. Though craft beers pioneered the non-alcoholic beverage trend, today's consumers can find options in wine, as well.
Speaking of craft beer, 57% of retailers plan to stock more of it this year. Hard seltzer and light lagers remain strong, with hard seltzers overtaking hard ciders. However, consumption of IPAs is expected to increase into early 2022, as the category typically increases in the winter months. Only 8% expect to cut back on their craft beer offerings compared to 23% who plan to take shelf space back from hard seltzer.
The low-ABV trend of recent years was answered by craft brewers with IPAs featuring ABVs of 4-5%. Though retailers expect slowing demand in that category in 2022, they foresee growth in craft lager sales. Even while low ABV beers remain popular, high alcohol beers over 6% and 7% will also experience growth. Though hard seltzers are still a major player, craft beers are surging ahead.
BevAlc sales professionals are the best barometer for recognizing year-over-year alcoholic beverage sales trends. Every year, retailers are on the front lines with consumers, answering questions and keeping the most popular products stocked. Drizly surveys many of these retailers and compares the results to actual sales data to create a forecast for the coming year. Fox Selling System understands the criticality of recognizing trends in the BevAlc industry, so we've summarized the top ones for 2022.
Keeping it local, natural, or organic is of particular interest to BevAlc consumers. Though more common with wines, the trend has continued to include craft beers. But that's not the only way beer and wine producers are responding to consumer health concerns. Non-alcoholic beverage sales are continuing to rise and will be more prevalent than ever on shelves and in coolers in 2022.
Craft beers will also continue to play a major role in the upcoming year with more than half the retailers surveyed planning to increase their offerings. IPAs, including both the high and low-ABV versions, are leading the craft brew category. Though hard seltzers have taken precedence for consumers over hard ciders, they still fall far behind craft beers. The overriding message is that consumers want quality products that support their health and wellness goals while still allowing them to have periodic indulgences.