x
Analytics Economy USA

The Rise of Canned Cocktails: A Look at the Shift in Alcohol Trends

The Rise of Canned Cocktails: A Look at the Shift in Alcohol Trends
  • PublishedOctober 4, 2024

In recent years, the landscape of alcoholic beverages has undergone a significant transformation, largely driven by the popularity of canned drinks. Initially marketed as a healthier alternative to traditional alcohol, hard seltzers and spiked beverages have captured the attention of consumers across America, Business Insider reports.

With their light, refreshing profiles and often lower calorie counts, these drinks quickly gained traction, particularly among younger demographics. However, the evolution of these prepackaged beverages has led to an increase in alcohol content, raising new questions about their impact on consumption patterns.

The trend began with the introduction of hard seltzers, such as White Claw and Truly, which hit the market in 2016. These beverages typically contained an alcohol by volume (ABV) similar to that of beer, usually ranging from 4% to 6%. As the pandemic forced many to stay home, the demand for convenient, ready-to-drink options surged. Kaleigh Theriault, an associate director of beverage-alcohol thought leadership at NIQ, noted that during this period, hard seltzers became a perceived healthier option, despite the reality that no alcohol can genuinely be classified as healthy.

As the market became saturated with hard seltzer options, companies began to innovate, leading to the development of higher ABV canned cocktails. According to NIQ, the sales of ready-to-drink alcoholic beverages reached $13.1 billion last year, representing a significant increase from previous years. In contrast, hard seltzer sales have seen a decline of 13.1%, while spirits-based drinks rose by 22.5%. This shift reflects a growing consumer preference for more potent, authentic cocktails, making options like canned gin and tonics and margaritas increasingly appealing.

The rise of spirits-based canned beverages can be attributed to several factors: consumer taste preferences, corporate strategies, and changes in state regulations. People are increasingly drawn to the idea of purchasing prepackaged cocktails, which offer both convenience and affordability compared to buying individual ingredients. The portability of these drinks has also contributed to their popularity, allowing consumers to easily bring them to social gatherings or outdoor events.

While the variety of canned cocktails continues to expand, the increased alcohol content presents potential risks for consumers who may not be fully aware of the strength of these beverages. Many people are surprised to learn that some canned cocktails have an ABV significantly higher than traditional beers. The unexpected potency of these drinks has led to social media jokes and memes, highlighting the disparity between consumer expectations and reality.

As the market for canned alcoholic beverages continues to grow, consumers are also becoming more aware of the wide range of options available. New brands are emerging, and many have only recently entered the market, creating a sense of excitement and sometimes confusion for shoppers. Regulatory changes in various states have further facilitated this growth, allowing for broader distribution of spirits-based products in retail settings.

Despite the current boom in canned cocktails, the alcohol industry is known for its cyclical nature. The popularity of certain products can fluctuate, and there is no guarantee that all the new offerings will remain on shelves in the coming years. Analysts suggest that the proliferation of high-ABV drinks indicates a bifurcation in consumer preferences, with many gravitating toward either stronger options or nonalcoholic beverages, creating a gap in the middle of the market.

Written By
Joe Yans