As health and financial consciousness drive recent changes in drinking habits, alcohol brands and bars are adapting to meet evolving consumer demands. Recent data suggests that many consumers are drinking less frequently and opting to save stronger drinks for special occasions. In a recent report, researchers found that 32% of global consumers say they are drinking or planning to drink less frequently than a year ago, 23% plan to buy fewer drinks, and 30% plan to save stronger serves for special occasions.
Brian Rosen, CEO of leading alcohol private equity firm InvestBev, shared with us his thoughts on the “moderation movement” and how it’s reshaping the alcohol industry. He has received numerous industry awards, including Forbes Best of the Web (2 times), Retailer of the Year (3 times), Wine Innovator of the Year, and was a Power Ranking Top 100 Global Beverage Leader. Here’s what he shared about moderation trends, the alcoholic beverage market, and how premium brands have responded to this shift.
Changes in the adult beverage industry
“While there is some evidence that consumers are becoming more intentional with their alcohol consumption, we’re primarily seeing a broader trend of moderation and premium brands rather than a shift toward more potent drinks for special occasions per se. This is driven by health-conscious consumers, generational shifts, and a growing cultural movement toward balance rather than embracing excess,” Rosen said.
In response to changing consumer habits, Rosen shared that brands in the industry are investing heavily in high-quality, non-alcoholic options. “Ten years ago, mocktails were often afterthoughts on menus, but today, brands and bars are treating them with the same level of craft as traditional cocktails. Big players like Diageo and AB InBev have entered the space with non-alcoholic lines, and craft distilleries are producing sophisticated zero-proof spirits that replicate the depth and complexity of alcohol. This is not a fad — it’s a fundamental shift that will shape the industry for years to come, especially as the consumer base ages.”
Premium experiences over volume consumption
When consumers decide to drink, Rosen told us that the mindset has shifted to a “drink less, but drink better” motto. This trending idea prioritizes premium experiences over volume consumption. This shift has “led to increased demand for high-quality craft spirits, premium wines, and expertly made non-alcoholic alternatives. Brands are responding by refining their portfolios to include high-end offerings that justify their price points, whether in packaging, ingredients, or production technique,” Rosen explained.
He also shared that lower-ABV non-alcoholic alternatives are also seeing a surge in innovation. Products such as hard kombuchas, botanical-infused spirits, and low-proof aperitifs are now mainstream. “At the same time, smaller packaging formats — such as single-serve RTDs or half-sized spirit bottles — allow consumers to indulge without committing to full-size purchases. The industry recognizes that consumers want flexibility, whether that means enjoying a high-end whiskey or opting for a sophisticated zero-proof alternative on a given night.”
Bars and restaurants
Changes in consumer interest in drinking also affect bars and restaurants, which have prompted recent changes in the industry to maintain profitability. Given that consumers are changing how they spend, Rosen said that bars and restaurants are leaning into creativity by offering premium, handcrafted cocktails in alcoholic and non-alcoholic versions. “Elevated cocktail programs that feature fresh, high-end ingredients and unique presentations continue to thrive, especially in venues emphasizing experience over simple bar ambience,” he said.
Bars and restaurants can adopt the low- and no-alcohol trend by offering dedicated zero-proof menus, experiential tasting flights, and curated pairings that rival traditional wine lists. Per Rosen, some have even begun hosting non-alcoholic cocktail events, capitalizing on the growing interest in sophisticated alternatives. “At the end of the day, consumers are still willing to pay for a well-crafted beverage experience — they’re just being more intentional about their choices.”
As the industry’s landscape shifts, investors become more interested in particular segments, such as premium spirits, ready-to-drink cocktails, and experiential alcohol brands. RTD cocktails have become a major growth area. “The convenience factor and increased focus on craft and high-quality ingredients have propelled this segment forward. Additionally, experiential alcohol brands — offering more than just a drink but a lifestyle or cultural connection — are gaining traction,” he explained.
Although Rosen warns that while alcohol consumption patterns are changing, he reminds investors and consumers that the demand for high-quality innovative beverage experiences remains strong. He believes those who “win” in this space will be those who can adapt to these shifts while maintaining a strong brand identity.
