Category Trends to Watch
Let’s start with some positive trends.
The popularity of tequila and rum, in particular, has surged over the past year and shows no signs of slowing down in 2025.
While the tequila market may see some adjustments in the U.S., the UK and Europe are still in the process of catching up.
I foresee an expanding variety in tequila offerings, especially flavored options, as well as a growing acceptance of mezcal.
Rum, on the other hand, continues to thrive in the market.
Unlike vodka, its producers are embracing creativity, which makes it appealing to both consumers and retailers alike.
Another promising development is the growth of the low and no-alcohol segment.
I predict that we’ll witness a refinement in these offerings as lower-quality products gradually disappear.
Around the globe, whisky is gaining recognition, while vodka maintains its presence, though there’s a strong need for innovation in this category.
Surprisingly, traditional gin varieties, especially London Dry, are gaining traction again.
Meanwhile, Limoncello is establishing itself as a drink for all seasons, whether served neat or in cocktails.
In the cocktail realm, we’ve observed a slight decline in trendy drinks like the Espresso Martini and Pornstar Martini.
Nevertheless, classic cocktails such as Margaritas and Palomas are likely to remain popular, provided the industry doesn’t shift too swiftly towards the latest fads.
Broader Consumer Trends
Beyond specific products, overarching consumer behaviors will undoubtedly shape the industry landscape.
A noticeable trend is the increasing emphasis on moderation, which is boosting the appeal of lower ABV spirits.
I expect a growing interest in options like Sake, typically around 15-16% alcohol, that can mix seamlessly into traditional cocktails.
Support for local distilleries will also continue to rise, particularly in regions like Scotland and Cornwall, where distillation processes directly utilize local resources.
This year, the on-trade sector will be crucial in driving trends forward.
It’s unfortunate that many establishments might close, but the ones that remain will play an instrumental role in encouraging patrons to explore diverse categories and innovate with new offerings.
Given the success of celebratory events in 2024, I anticipate that 2025 will bring fresh opportunities for venues to engage with their customers.
Moreover, a growing commitment to sustainable practices is becoming a priority for producers, both to satisfy consumer demand and to act responsibly.
As people increasingly consider the environmental impacts of their choices, brands will need to adapt to these expectations, although this could be challenging due to economic pressures that are squeezing profit margins.
Finding Reasons for Optimism
Despite these promising trends, the spirits and hospitality sectors face challenges ahead, particularly from government actions.
We can expect duty rates on spirits to rise in line with inflation, which could lead to significant price increases.
Additionally, the escalating costs of living, energy, and employment will inevitably affect both consumers and businesses in the alcohol sales industry.
The hospitality sector, still reeling from the pandemic, will feel the pinch even more with reduced rates relief.
However, the resilience of our industry is something to behold.
We have consistently proven our ability to adapt and innovate in times of hardship.
Although 2025 may see some casualties among brands and venues, I firmly believe we will come through stronger.
At Mangrove, I have the privilege of working with the finest independent enterprises.
Collaborating with passionate individuals at the forefront of their fields, I see firsthand the exceptional quality they deliver, from their unique products to memorable experiences.
This spirit of innovation and commitment will be our guiding light as we navigate the challenges of the coming year.
In closing, I’m reminded of a cherished saying that teaches us to be patient, as rewards often come to those who wait for the right opportunities.
Source: Harpers
