A new report by market research firm International Wine and Spirits Research (IWSR) suggests that the alcohol market is changing fast due to e-commerce, new types of drinks, and health concerns.
The growth of online channels has redefined frontiers for alcohol sales and posed significant challenges for established players.
The new generation of tech-savvy consumers is turning its back on traditional retail and opting for the convenience and simplicity of ordering online.
New-generation off-licences seem to have taken the challenge head-on. US-based online off-licence Drizly, established in 2012, is already operating in more than a hundred cities in the US, as well as Canada.
In Europe, a London-based start-up, Bevy, promises to deliver alcohol in less than 30 minutes.
Is Cannabis The Next Big Thing In Drinks ?
The report outlines that as the demand for low-alcohol beverages rises, the market for CBD-infused drinks (i.e. drinks with cannabidiol) is finding its place in the industry.
The natural compound CBD is different from the better-known THC (tetrahydrocannabinol), as it is not psychoactive and is legal in many countries.
With increased usage in medicine for its pain-relieving and anti-inflammatory purposes, cannabis could also prove to be one of the biggest disruptors to the drinks industry, IWSR says.
In June, the WHO undertook a critical review of the compound and recommended that CBD not be put on the list of controlled substances, as its experimental research indicated that CBD was not associated with abuse potential.
Other Factors
According to IWSR, event-based occasions such as food fairs, concerts or pop-up restaurants are opening up opportunities to market new products as part of the experience, and present a new opportunity for innovation.
Growing health concerns, coupled with the availability of non-alcoholic variants in drinks, like Heineken 0.0, has altered consumption patterns among consumers.
IWSR also pointed out that lower-ABV variants of popular spirit brands are growing rapidly at the expense of traditional ones.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.
