The beverage alcohol industry entered 2025 and 2026 in the midst of a fundamental reset. After years of growth, premiumization and rapid innovation, producers, retailers, bars and restaurants now face a more selective consumer, changing drinking occasions and increased pressure on established categories. From the rise of moderation and ready-to-drink cocktails to whiskey’ s market correction, evolving consumer expectations and the search for new sources of growth, the industry has adapted to a different set of realities. Accordingly, here are eight major trends shaping beverage alcohol in 2025- 26— and what they could mean for business ahead. 1) THE RISE OF INTENTIONAL DRINKING We are know that people are drinking less: A Gallup poll released in mid August found that the share of Americans who say that they drink alcohol remains at a record-low 54 % for the second consecutive year. That’ s the lowest reading in Gallup’ s trend dating back to 1939. The percentage of Americans who say they sometimes drink too much has also fallen, reaching a new low of 13 %. Before 2000, more than 20 % of Americans routinely reported overdrinking, including a record-high 35 % in 1989. Reasons abound for the overall pullback in alcohol consumption, from concerns about health to cost consciousness to more nonalcoholic options to competition from other products such as cannabis, and Baby Boomers aging out of key consumption years. But U. S. consumers are still drinking. Americans who consume alcohol report having an average of 3.2 drinks in the past week, according to the Gallup survey. This is similar to the 2.8 reported last year but down from an average of 3.9 drinks per week over the prior five readings. What does this mean for the beverage alcohol industry? The low-alcohol and non-alcohol market in theU. S. has moved from a niche curiosity to a mainstream, innovation-led sector. The Beverage Information Group’ s report“ Beyond The Buzz: Insights into Low- and No-Alcohol Trends” notes that the category’ s volume and value growth continue to outpacemany full-strength categories.“ Sober-curious” consumers, health and wellness positioning, better product quality— especially among NA spirits and craft NA beer— and broader on- and off-premise availability are driving the trend. INTENTIONALLY DOWNSIZING Younger generations in particular have become more intentional about their consumption to prioritize wellbeing. This intentionality has spawned a trend called the two-drink night or two-drink rule. Consumers are choosing to stop at two, quality drinks per evening or occasion in favor of balance. On-premise operators are seeing this trend, such as Felix Cocktails et Cuisine. The Charleston, SC-based restaurant, which is known for its refined cocktail program and culinary pairing approach, has found that guests are prioritizing intentional ordering, lingering longer, and treating drinks as part of a broader dining narrative. As consumers drink more intentionally, they’ re seeking variety over volume, and looking for memorable experiences without committing to a full-sized cocktail. That’ s where half-size craft cocktails and wine portions come in. Kathy Casey president / CEO of Kathy Casey Food Studios says that the concept of moderation is being redefined. Consumers aren ' t just looking to abstain; they want precision in their consumption. Half-size " craft cocktails and smaller wine pours cater to the guest who wants " just a little something " to start – or finish, and the ability to sample multiple menu items without overindulging. For example, as part of its Martini Mondays rolled out this past spring, Sloane ' s in New York offers a trio of mini Martinis with signature riffs such as the Cold Plunge( gin, Cocchi Americano, lemon, mint oil, Creole bitters), Vesper Royale( vodka, gin, Lillet Blanc, Gibson brine, dill, lemon bitters), and a milk-clarified Lychee, alongside the classics. Lele’ s Roman, an Italian restaurant in Brooklyn, puts a unique spin on the classic Italian aperitivo with the Baby Negroni Series. It’ s offered as a trio of 2.5-oz. pours, allowing guests to explore different expressions of the drink— from the Classic( Tanqueray gin, bitter, sweet vermouth) to the Bianco( Hendrick’ s gin, Italicus liqueur, Lillet Blanc) and the Robusto, a bold take with PX sherry and Luxardo Bitter Rosso. A curated tasting flight of three mini is priced at $ 22; Lele’ s Roman’ s guests can also order the mini Negroni solo for $ 9. The offering provides a low-commitment entry point to a spirit-forward cocktail. As with the mini cocktails, the increase in smaller-format packaging for spirits, wine and beer also plays into the moderation trend. For instance, Broken Shed Vodka and Tres Agave tequila both launched 375-ml. bottle sizes in 2025. Espolòn Tequila this past August introduced 200-ml. bottles of its blanco and reposado expressions. Lower-ABV wine and spirits also appeal to moderate drinkers both on- and off-premise. Second Sip, a low-ABV London Dry-style gin, was launched last year by industry veterans Leo Robitschek, Nick Strangeway and Sharelle Klaus. The 20 %-ABV gin— half the alcohol of a standard 80-proof gin— addresses the growing appetite for mindful,“ sessionable” cocktail experiences. The lower-proof spirit makes it possible for people to enjoy more Martinis with less regret, extending the occasion rather than cutting it short. Sparkling wine brand Korbel in August launched Korbel Aire, a low-alcohol California champagne with just 7 % ABV and 70 calories per serving. The company says the product extension speaks to the cultural shift towards health and wellness that’ s fueling the increased demand for low-alcohol options. THERE’ S NO-PROOF The alcohol-free movement is thriving, and brands and mixologists alike have spruced up their NA offerings. For instance, the two-Michelin-starred The Inn at Little Washington in Washington, VA, offered two new seasonal mocktails this summer. The Verde Fresca features fresh lime and house-made cucumber-jalapeño syrup, while the Summer’ s Kiss combines watermelon, basil, mint and sparkling water. The Inn at Little Washington created these signature NA drinks to capture the flavors of the season with the balance, creativity, and attention to detail of a handcrafted cocktail. Le Colonial Delray Beach, a French-Vietnamese restaurant in Florida, in August expanded its zero-proof offerings. The Violet Moon($ 15) combines ube syrup, coconut purée and Q Soda; the Lush Paradise($ 15) features Lush Orchard Tea, Seedlip Citrus Botanical and honey syrup; the Saigon Mint Colada($ 13) is made with coconut milk, pineapple, mint, turmeric and nutmeg; and the Lemongrass Spritz($ 15), mixes Seedlip Citrus Botanical, lemongrass syrup, yuzu essence and Q Soda. Chain restaurants have also stepped up their spirit-less sips. In August, Outback Steakhouse is partnering with Ritual Zero Proof to debut new non-alcoholic cocktails at 580 Outback locations across the U. S. The permanent addition to the Booze-Free Bevvies menu include the No Worries‘ Rita, a take on the Outback Classic Margarita, made with Ritual Agave Spirit Alternative and available in mango, watermelon, blackberry and strawberry, and the Tropic Like It’ s Hot, a tropical blend of Ritual Rum Alternative, mango, pineapple and lemonade shaken and finished with a Tajin spice rim. On the retail side, Hudson Dry, a zero-proof bottle shop in Hudson, NY, opened in July. Founder Ryan Curran— formerly of Eleven Madison Park, Big Night Restaurant Group in SF, and Talbott & Arding— has created a shop that focuses on thoughtfully crafted non-alcoholic wine, beer, and spirits, chosen for their craftsmanship, complexity, and flavor and not just because they ' re alcohol free. The store also stocks cocktail mixers, including tonic waters, colas, ginger beers, and sparkling waters, as well as cocktail garnishes, bitters and syrups. Curran plans to launch a craft ice program in-shop and an e-commerce shop this winter. Straddling the on- and off-premise sectors, All The Bitter Zero Proof Lounge combines a refined cocktail bar, educational workshop space, and bottle shop with 200 + non-alcoholic options under one roof. Opened in 2025 by former French Laundry sommeliers Ian and Carly Blessing, the Chico, CA-based concept supports the growing sober-curious culture and creates an inclusive, multi-generational social space. 2) THC DRINKS MOVE INTO MAINSTREAM THC beverages have moved beyond a niche product and into the broader beverage marketplace. Changing consumer attitudes toward alcohol have created opportunities for the category. At the same time, brands and retailers face uncertainty over federal regulations that could reshape the hemp-derived THC market.“ I think the industry is at a really interesting inflection point,” says Angie Stevenson, founder of Alohi.“ Consumer demand is clearly there.” Michael Maxwell, sales director at Looner Sodas, sees THC beverages as part of a broader shift in how younger consumers approach alcohol.“ As alcohol drinks continue to be looked at for their negative side effects— hangovers, calories, perceived bad actions while under the influence— low-dose THC drinks have emerged as an alternative to these negative views,” he says.“ As Millennials and parts of Gen Z have really adopted to alcohol in more moderation than previous generations, THC drinks have become an option to still have your socialized experience while being able to cut alcohol out of the night completely,” he adds. Maxwell does not necessarily see THC beverages taking significant share directly from beer, wine and spirits.“ I think THC drinks are gaining share, but not necessarily taking share,” he says.“ While I am sure there is some crossover from people who would drink alcoholic drinks who now drink THC drinks, I believe most of the share gain is from people who have chosen to leave the alcohol segment altogether, or where never in the alcohol segment to being with.” Stevenson also points to consumers seeking alternatives without abandoning the social rituals associated with drinking.“ People are drinking differently,” she says.“ They’ re becoming much more intentional about alcohol, but they don’ t necessarily want to give up the ritual, connection or fun that comes with having a drink.”“ They still want something beautiful in their hand,” she adds.“ They still want to toast, celebrate, go to dinner and be social. They’ re just looking for more choices in how they do it.” That changing demand is forcing retailers to reconsider shelf space. Maxwell compares the expansion of THC beverages with the growth of non-alcoholic products.“ Now, I go into liquor stores and there are full cooler doors of NA beer, and full aisle runs of non-alcoholic mocktails and wines,” he says.“ Add this to another cooler door for THC drinks and another aisle for THC drinks, and you ' re now completely transforming the makeup of a store.” For THC beverages, education remains important. Stevenson says retailers need to make products“ easy to discover, understand and shop,” while“ education, visibility and trial are huge.” She notes that consumers may not know“ what it is, how much THC is in it or when they would drink it.” Both individuals identify regulation as critical to the category’ s future.“ I think for the segment to survive, we need to see uniform guidance from the federal government,” Maxwell says. Stevenson similarly argues that a sustainable market needs“ clear standards around age restrictions, testing, labeling, dosing and distribution.” For retailers, the coming regulatory decisions could determine how aggressively they invest in the category. But the underlying consumer demand appears to remain, with THC beverages increasingly competing not only with alcoholic drinks but for the same social occasions. 3) IMPORTED, MACRO BEERS SELL Beer faces pressure from changing consumer habits and broader economic challenges. But imports are gaining share within the category as established brands outperform smaller and more experimental offerings. Dr. Andrew Heritage, chief economist for the Beer Institute, recently joined an episode of our podcast, On & Off. During the discussion, he pointed out that imports currently represent one of the strongest segments in the organization’ s data.“ Imports are gaining share this year,” he says.“ Not growing in my data, but gaining share.”( Heritage did note that the mainstream American macro segment, which includes what the broader industry typically calls Premium and Premium Plus, is also“ holding its own right around the overall category trend.”) Imports have faced challenges in recent years, but Heritage says the segment appears to be returning to a trajectory seen earlier in the decade.“ Last year there were a lot of headwinds the category faced, and maybe the import segment faced some of those a bit stronger,” he says, alluding to U. S./ Mexican tariffs.“ Imports, you know, going back to three years ago, imports in my data were growing in 2024. And so it ' s kind of getting back on that trajectory.” The strength of imports also showed up in Heritage’ s analysis of incremental beer sales around major occasions, including the recent World Cup, hosted in North America. Heritage says the data showed that mainstream and import beers accounted for the majority of the additional volume during the soccer tournament, with large established brands leading the gains.“ I estimate 89 % of it was in mainstream and import,” Heritage says. That performance reflects a broader consumer preference for familiar brands during a period of economic pressure. Heritage says consumers who are drinking less beer appear more likely to choose brands they already know rather than experiment.“ In a stress environment, when I ask consumers, why are you drinking less beer? And if you are drinking less beer, you ' re more interested in trying something that ' s a dependable, known brand to you,” he says.“ That does seem to be there ' s some strong evidence for that in my consumer data, and that just tells me that, look, consumers are a little bit less experimental.” That dynamic has put particular pressure on craft beer, which Heritage says has“ underperformed the rest of the category for quite some time.” He attributes part of the challenge to the maturation of the craft segment and to consumers becoming less willing to experiment as economic pressures increase.“ That probably disproportionately hurts craft,” he says. The broader economic environment remains an important factor. Heritage points to inflation and higher costs of living as pressures affecting beverage alcohol consumers.“ There ' s a squeeze on a not all consumers, but on a lot of consumers,” he says.“ We had inflation like we hadn ' t seen in over 45 years.” He adds that younger consumers have been particularly affected by cost-ofliving increases. Still, Heritage does not see younger consumers abandoning beer or alcohol.“ The idea that just Gen Z doesn ' t drink or they don ' t like alcohol is far more myth than reality,” he says.“ I do think they drink differently.” He points to spending data showing that Gen X and Millennials spent roughly the same amount on beverage alcohol at the same life stage as Gen Z reports spending today, after adjusting for inflation. For beer retailers, the current market points toward a consumer who remains engaged with the category, but is increasingly selective about where and how that spending occurs. Imports and other established brands are benefiting from that preference, while craft and other segments face pressure to demonstrate value and give consumers a reason to experiment. 4) EXPERIENCE IS EVERYTHING As consumers have more options for where and how they buy beverage alcohol, retailers are using tastings and events to create reasons for shoppers to visit stores and engage with products. At Top Ten Liquors in Minnesota, Founder Jon Halper says the role of tastings has evolved.“ We don ' t run tastings as a growth strategy. We run them to create an experience in the store,” Halper says. Top Ten hosts weekly tastings on Fridays and Saturdays, its peak shifts. Halper says the impact extends beyond the tasting table itself.“ A great tasting creates an environment where people want to shop,” he explains.“ And the more tables we have going, the more excited customers get— it changes the feel of the whole store, not just the corner the table is in.” The person conducting the tasting plays a central role in that experience. Halper says the traditional“ liquid to lips” philosophy still works, but only when the person pouring can engage shoppers and communicate enthusiasm for the product. Jessica Kogan, founder and CEO of HSP Brands, believes consumers increasingly expect an in-store activation to offer more than product trial.“ Consumers expect more than a sample,” Kogan says.“ They want discovery, a recommendation and a story they can repeat to friends. Increasingly, they also want enough information to feel confident that they are making the right choice.” That makes human interaction increasingly important, even as shoppers have more product information available online.“ Consumers do not have a shortage of choices,” Kogan explains.“ They have a shortage of confidence.” Halper also points to changes in the supplier support behind events.“ Supplier and wholesaler budgets are smaller. Support is harder to get and takes longer to line up,” he says. At the same time, retailers increasingly rely on third-party agencies to staff events, rather than having brand or wholesaler personnel conduct them. Halper says that shift can create challenges when representatives lack product knowledge or customer engagement skills. For retailers, the most effective events tend to give shoppers a specific reason to participate.“ Tailored events work best,” Halper says, citing successful promotions like Women and Bourbon, Cocktailing for Everyone and winemaker appearances.“ When there ' s a theme and a reason to show up, people come and they buy. A generic table doesn ' t do that.” Kogan says the strongest activations also connect the experience before, during and after the event. Digital invitations can bring consumers into the store, while a trained representative can turn product trial into a purchase, and subsequent consumer recommendations can extend the impact beyond the event itself.“ Sampling inside a physical retailer is an extraordinary marketing privilege,” Kogan says.“ Done well, it creates a flywheel: digital media generates awareness, the in-store experience builds trial and confidence, and the initial purchase can become a personal endorsement.” Successful events also need a clear path from engagement to purchase. Halper says two factors separate strong events from weak ones:“ a passionate person pouring” and“ a real promo behind the item so there ' s a need to buy right then.” Inventory is another consideration.“ We won ' t schedule an item unless there ' s real inventory behind it,” he says. Over at Frugal MacDoogal in Nashville, Owner Charlie MacDoogal says,“ It’ s most certainly our opinion that positive customer experiences like tastings is critical.” The large store hosts several in-store sampling events per week, with multiple at the same time.“ We have tastings with knowledgeable people so that customers can properly experience that product,” MacDoogal says.“ That includes mixology, whatever’ s necessary in a cocktail. We try to have events with as much customer interaction as we can. Shaping experience is critical.” This extends beyond events.“ Experience includes our staff assisting customers in the aisles,” MacDoogal says,“ having a dialogue with customers. What are you looking for? Directing customers to the correct category and providing information, whether the customer is familiar with it or wants to experiment.” For Kogan, that interaction can have a longer-term impact on how shoppers view the retailer itself.“ Loyalty is not created by handing someone a coupon,” she says.“ It is created when a shopper thinks,‘ That store always helps me discover something good.’” Technology is beginning to play a larger role in measuring experiential retail. Top Ten rings samples through its POS at a penny, allowing the retailer to track what was poured, what it cost and whether the product subsequently moved. Scheduling, however, remains largely manual, with spreadsheets and calendars used to coordinate events across stores. Halper expects AI to improve that process. Kogan says retailers also need to evaluate events beyond sales generated that day.“ Same-day sales matter enormously, but they are a short-term measure,” she says.“ The more meaningful indicators are sales lift over 15, 30 and 45 days.” Looking toward 2027, Halper says planning will become increasingly important as supplier support tightens.“ Whoever plans furthest ahead gets what ' s left,” he says. He also expects retailers to focus experiential programs on tailored events, new products and categories that consumers may not yet understand. The key, he says, is measuring results beyond attendance.“ Attendance doesn ' t matter. Whether the item sold in the weeks after does.” 5) RTD LAUNCHES KEEP THE PARTY GOING The ready-to-drink( RTD) cocktail party can’ t go on forever, but judging by the plethora of launches this past summer, it’ s showing few signs of slowing. The global RTD cocktail market is projected to reach $ 60 billion by 2036 at a 4.8 % compound annual growth rate( CAGR), according to Future Market Insights. RTDs across all segments reached $ 13.6 billion in 2025, now representing 12.7 % of total off-premise beverage alcohol dollar sales, with spirits-based RTDs surging 25.7 % and offsetting roughly $ 650 million in core spirits declines, according to NIQ data. A sure sign that bigger brands are betting on RTD beverages, Sazerac launched three canned cocktail brands nationwide this past June: Lovebug Hard Cream Soda, Endless Afternoon Whiskey Lemonade, and Buckhorn Whiskey Lemonade. The company, which had acquired RTD BuzzBallz in 2024, also bought the Dirty Shirley in March 2026 and SIPMARGS readyto-drink brands in May 2026. Pernod Ricard is also leaning into RTDs, after it saw the category grow 12 % globally in fiscal 2026. The company will pair that strategy with small formats, on-premise activation, and cultural partnerships. Soft drink brands are competing by spiking their canned offerings. Fresca Hard, a flavored malt beverage featuring the classic citrus taste of Fresca and 4.6 % ABV, hit shelves in May, while Minute Maid Spiked launched a Vodka Lemonade Iced Tea in August. Tequila giant Cuervo got into the RTD game in June with Cuervo Canned Cocktails. The 5.9 % ABV sparkling drinks are available in four flavors: Classic Margarita, Paloma, Strawberry Margarita and Pink Lemonade. All Día, a line of tequila RTD cocktails launched in May, is betting on interest in lower-proof options. Each can has just 2.5 % ABV, roughly half the proof of most RTDs, with 50 to 60 calories per can. Spritz cocktails continue to proliferate in the RTD space. Sparkling wine brand Freixenet in August released Freixenet Solare Spritz, made with 100 % natural Spanish lemon and clementine flavors. The blend is infused with rosemary and thyme, adding a subtle, dry bitterness that balances the citrus notes, the company says. Joel Gott Wines in July came out with Sauvy B, a canned sauvignon blanc spritz with electrolytes that it says brings together wine, spritz culture and functional refreshment. The 100-calorie, 4.5 % ABV Sauvy B is available in lime and grapefruit flavors. Cordials brand Cointreau in May rolled out Cointreau Citrus Spritz, a ready-to-serve sparkling cocktail. Made by blending the brand’ s signature orange liqueur with French white wine and citrus flavors, the 10.5 %-ABV spritz comes in a 750-ml. bottle and is available in two flavors: Orange & Blood Orange and Lemon & Lime. Another trend is the zero-proof spritz RTD. For instance, Molson Coors brand Naked Life unveiled its Italian Spritz RTD in July. Italian Spritz, with 0 % ABV, 0g sugar, and 5 calories, is made with steam-distilled botanicals and natural flavors for bright bitter orange notes balanced by herbal and floral undertones. Non-alcoholic beverage brand Ritual Zero Proof in May debuted its first RTD line of non-alcoholic canned cocktails, available in three flavors: Margarita, G & T, and Spritz. And zero-proof spirits brand Lyre ' s in June expanded its RTD portfolio with Classico Rosé RTD, a canned version of its Classico Sparkling Rosé. TRANSITIONING FROM A NOVELTY The RTD category is transitioning from novelty-driven surge to a more mature, segmented, and strategically competitive phase, according to“ Readyto-Drink( RTDs) At the Turning Point: From Hypergrowth to Strategic Maturity.” The report from the Beverage Information Group provides an overview of the U. S. RTD alcoholic beverages market in 2025, including market dynamics, consumer insights, trends, and future opportunities. Younger consumers, especially Millennials and Gen Z, seek flexible, personalized RTD options that align with wellness and social habits, the report says. Consumers value variety in flavors, ABV levels and formats, with a focus on global flavors, health-conscious options, and premium experiences. RTDs are seen as complementary to other alcohol choices, not substitutes, with preferences shifting toward beer and spirits as consumption diversifies. About 80 % of Gen Z RTD drinkers are interested in non-alcoholic versions, emphasizing demand for flexibility. RTDs are increasingly integrated into regular routines and social occasions beyond casual settings. What’ s the long-term outlook for RTDs? The Beverage Information Group sees RTDs continuing their roll, supported by continued segmentation, innovation discipline, and the category’ s versatility across flavors, formats, and alcohol levels. Future growth will be driven less by volume expansion and more by strategic alignment with evolving consumer lifestyles. 6) PREMIUMIZATION EVOLVES Premiumization remains an important force in beverage alcohol retail, but the concept has changed as consumers become more selective about where they spend their money. Price and packaging alone no longer automatically communicate value.“ Premium used to be easy to signal: a higher price, beautiful packaging, a respected appellation or a compelling origin story,” says Jessica Kogan, founder and CEO of HSP Brands.“ Today, consumers are asking a harder and far more useful question: Why is this worth more?” That question comes as alcohol consumption faces broader pressure. Gallup research released in August 2026 found that 54 % of Americans say they drink alcohol, matching the lowest level in the organization ' s long-running trend. Consumers who continue to drink are also approaching their purchases more selectively. For brands and retailers, drinking less does not necessarily mean spending less per occasion.“ If I am having fewer cocktails or opening fewer bottles of wine, I may be willing to spend more when I do,” Kogan says.“ But the product has to earn its place in my glass, my basket and my home.” Consumers are not necessarily abandoning higher-priced products, Kogan says. Instead, they are becoming more selective about when and where they trade up.“ Consumers are not necessarily saying,‘ I will never spend $ 40 on a bottle again,’” she says.“ They are saying,‘ Give me a reason to spend $ 40 on this bottle.’” That decision increasingly depends on the moment a consumer is shopping for. A bottle purchased as a gift represents a different need than one selected for dinner at home, a gathering with friends or an ordinary evening. For years, the beverage alcohol industry has organized marketing around major occasions and celebrations. That approach can limit opportunities if brands implicitly teach consumers that certain products require holidays or milestones.“ Everyday life is the occasion,” Kogan says.“ Growth will come when we stop asking only,‘ What are we celebrating?’ and start asking,‘ What fits this moment?’” For retailers, that shift can create an opportunity to make the trade-up decision easier. Independent liquor stores can use staff recommendations, tastings and merchandising to connect products with specific needs rather than simply separating higher-priced bottles into a premium section.“ A shelf can tell you the price,” Kogan says.“ A person can tell you why you might love the product.” Retailers can merchandise around moments and solutions: something to bring to dinner, a bottle to share with friends, a gift, a weekend discovery or an upgrade for an otherwise ordinary Tuesday night.“ Consumers do not walk into a store thinking,‘ Today I would like to participate in the premiumization trend,’” Kogan says.“ They walk in thinking,‘ What will I feel good about sharing?’” Looking toward 2027, Kogan sees continued opportunities in ready-todrink products, lower- and no-alcohol options, distinctive spirits and wine brands that offer experiences or credible stories. She cautions against declaring any category incapable of further growth.“ The ceiling is not necessarily a category,” she says.“ It belongs to brands whose only discernible point of difference is price.” The retail takeaway is that premiumization still matters, but simply stocking more expensive products is not enough. Retailers can capture more of those sales by helping shoppers understand the difference between products and connecting trade-up purchases to the moments that matter to them. As Kogan puts it,“ Today, premium is not simply a price point. It is a reason to believe.” 7) CAN WINE RECLAIM ITS PLACE AT THE TABLE? The state of the wine industry continues to be that people aren’ t drinking enough wine. Total wine volume declined 4.5 % to 315.7 million 9-liter cases in 2025, according to the 2026 Wine Handbook, published by the Beverage Information Group. That amounts to a loss of 14.9 million cases from the prior year and the category’ s fourth consecutive annual decline. The back-to-back decreases recorded in 2024(-3.6 %) and 2025 represent the steepest annual volume losses in recent history, underscoring the significant challenges facing the U. S. wine industry. A key issue for the category is that younger people aren’ t embracing wine the way their parents did. It also doesn’ t help that their parents, and grandparents, are moving or have moved past their peak wine-drinking years. What to do to stem or reverse the wine decline? Come Together, A Community for Wine, has created a few wine advocacy campaigns including Come Over October and Share & Pair Sundays. Founded in 2024 by wine writer and author Karen MacNeil, Gino Colangelo of Colangelo & Partners, and Kimberly Noelle Charles, DipWSET, of Charles Communications Associates, the company aims to tell the story of wine ' s historic and contemporary role as a beverage that brings people together. A new national consumer survey conducted by Come Over October in partnership with LocalWineEvents. com finds consumers associate sharing wine with fun, friendship and connection. Nearly half( 41 %) of respondents said that having a specific occasion or reason to gather, such as Come Over October, would make them more likely to host a gathering with wine. Now entering its third year, Come Over October is a national campaign built around a simple invitation: Ask a friend or friends to come over, share some wine and make time for one another during the month. Findings from the 2026 Wine & Gathering Study, which included 1,553 respondents across two surveys, point to opportunities for the wine industry. People may be drinking differently, but they’ re still looking for reasons to connect around wine. When asked what would make them more likely to host a gathering with wine, 44 % of the survey respondents cited easy recipe and food-pairing ideas, 41 % said a specific occasion or reason to gather, and 32 % said wine recommendations for different budgets or occasions. The study also indicated a link to the presence of wine and perceptions of social connection. In the two surveys, respondents were shown versions of the same dinner image— one group saw guests drinking wine, the other saw them drinking water. Those shown the wine version were more likely to describe the people as close or old friends( 48 % vs. 38 % that saw the water version), the atmosphere as warm and relaxed( 73 % vs. 65 %), the occasion as special or memorable( 25 % vs. 16 %), and the gathering as generous and well hosted( 21 % vs. 13 %). With so many competing beverage alcohol options, from spirits and cocktails to beer and hard seltzer, as well as CBD / THC drinks, emphasizing wine’ s role with food can be a differentiator. Share & Pair Sundays, which concluded its second annual nine-week run in June, celebrates the ritual of gathering around wine and food. More than 13,000 winery events took place from May 3 through June 28 this year to bring together consumers, wineries, retailers, restaurants and hospitality partners around shared experiences. 8) WHISKEY’ S MARKET RESET The American whiskey industry enters 2026-27 facing a combination of challenges that Dave Schmier, founder of Proof and Wood, says differs from previous market cycles. Slowing alcohol sales, a growing whiskey oversupply, pressure on the traditional distribution system, rising transportation and other input costs and reduced export opportunities have created a difficult environment for suppliers. Some of the current slowdown may also reflect a return to pre-pandemic consumption patterns. Schmier notes that Covid-era alcohol growth included temporary changes in consumer behavior that the industry has now moved beyond.“ At least part of the issue” may be that“ we are regressing back to pre-Covid levels of consumption,” he suggests. At the same time, other shifts could have longer-term implications. Schmier points to the impact of THC products and GLP-1 drugs, although he says the extent to which those changes prove permanent remains unclear. He sees the movement of consumers toward RTDs and hard seltzers as a more lasting change. For whiskey producers navigating the downturn, Schmier says maintaining a clear identity while adjusting to changing market conditions remains important. He cites a saying attributed to Julian P.“ Pappy” Van Winkle Sr.:“ We make fine bourbon at a profit if we can, at a loss if we must, but always fine bourbon.” For Proof and Wood, that approach aligns with its guiding principle of providing“ good whiskey at a fair price.”“ We are constantly adjusting our offerings and prices to what our customers are looking for,” Schmier says. The current whiskey surplus could also reshape the independent bottler and non-distilling producer segment. Greater barrel availability lowers one barrier to entry and may encourage more companies to enter the category. But Schmier expects the business challenges of distribution, financing and operating costs to separate successful companies from others.“ The glut of whiskey makes it easier for more players to get more involved in bottling their own barrels,” he says.“ It will work out great for some. Others will fall by the wayside as they encounter distribution challenges and the cost of truly running an independent bottler.” Despite the challenges, Schmier sees opportunities for companies willing to differentiate themselves through product development, branding and new routes to consumers. Suppliers should continue to watch evolving distribution opportunities, including direct-to-consumer models, he says. Looking beyond whiskey, Schmier identifies one broader trend that could shape the next chapter of the spirits industry: creating stronger connections between brands and consumers.“ One trend that is important is building community around your brand,” he says. • by MELISSA DOWLING AND KYLE SWARTZ BEVERAGE ALCOHOL CATEGORY TRENDS IN 2026-27 EIGHT Outback Steakhouse is partnering with Ritual Zero Proof to debut new non-alcoholic cocktails such as the No Worries‘ Rita. Above: All The Bitter Zero Proof Lounge in Chico, CA combines a NA cocktail bar, educational workshop and bottle shop. Below: Lele’ s Roman in Brooklyn offers mini Negroni as solo sips or a trio of 2.5-oz. pours. Second Sip, a low-ABV London Dry-style gin, launched in 2025. Clockwise, from top left: All Día, a line of 2.5 %-ABV tequila-based RTD cocktails, launched in May. Freixenet in August released Freixenet Solare Spritz, made with natural Spanish lemon and clementine flavors. Sazerac launched three canned cocktail brands nationwide this past June.

The beverage alcohol industry entered 2025 and 2026 in the midst of a fundamental reset. After years of growth, premiumization and rapid innovation, producers, retailers, bars and restaurants now face a more selective consumer, changing drinking occasions and increased pressure on established categories. From the rise of moderation and ready-to-drink cocktails to whiskey’ s market correction, evolving consumer expectations and the search for new sources of growth, the industry has adapted to a different set of realities. Accordingly, here are eight major trends shaping beverage alcohol in 2025- 26— and what they could mean for business ahead. 1) THE RISE OF INTENTIONAL DRINKING We are know that people are drinking less: A Gallup poll released in mid August found that the share of Americans who say that they drink alcohol remains at a record-low 54 % for the second consecutive year. That’ s the lowest reading in Gallup’ s trend dating back to 1939. The percentage of Americans who say they sometimes drink too much has also fallen, reaching a new low of 13 %. Before 2000, more than 20 % of Americans routinely reported overdrinking, including a record-high 35 % in 1989. Reasons abound for the overall pullback in alcohol consumption, from concerns about health to cost consciousness to more nonalcoholic options to competition from other products such as cannabis, and Baby Boomers aging out of key consumption years. But U. S. consumers are still drinking. Americans who consume alcohol report having an average of 3.2 drinks in the past week, according to the Gallup survey. This is similar to the 2.8 reported last year but down from an average of 3.9 drinks per week over the prior five readings. What does this mean for the beverage alcohol industry? The low-alcohol and non-alcohol market in theU. S. has moved from a niche curiosity to a mainstream, innovation-led sector. The Beverage Information Group’ s report“ Beyond The Buzz: Insights into Low- and No-Alcohol Trends” notes that the category’ s volume and value growth continue to outpacemany full-strength categories.“ Sober-curious” consumers, health and wellness positioning, better product quality— especially among NA spirits and craft NA beer— and broader on- and off-premise availability are driving the trend. INTENTIONALLY DOWNSIZING Younger generations in particular have become more intentional about their consumption to prioritize wellbeing. This intentionality has spawned a trend called the two-drink night or two-drink rule. Consumers are choosing to stop at two, quality drinks per evening or occasion in favor of balance. On-premise operators are seeing this trend, such as Felix Cocktails et Cuisine. The Charleston, SC-based restaurant, which is known for its refined cocktail program and culinary pairing approach, has found that guests are prioritizing intentional ordering, lingering longer, and treating drinks as part of a broader dining narrative. As consumers drink more intentionally, they’ re seeking variety over volume, and looking for memorable experiences without committing to a full-sized cocktail. That’ s where half-size craft cocktails and wine portions come in. Kathy Casey president / CEO of Kathy Casey Food Studios says that the concept of moderation is being redefined. Consumers aren ' t just looking to abstain; they want precision in their consumption. Half-size " craft cocktails and smaller wine pours cater to the guest who wants " just a little something " to start – or finish, and the ability to sample multiple menu items without overindulging. For example, as part of its Martini Mondays rolled out this past spring, Sloane ' s in New York offers a trio of mini Martinis with signature riffs such as the Cold Plunge( gin, Cocchi Americano, lemon, mint oil, Creole bitters), Vesper Royale( vodka, gin, Lillet Blanc, Gibson brine, dill, lemon bitters), and a milk-clarified Lychee, alongside the classics. Lele’ s Roman, an Italian restaurant in Brooklyn, puts a unique spin on the classic Italian aperitivo with the Baby Negroni Series. It’ s offered as a trio of 2.5-oz. pours, allowing guests to explore different expressions of the drink— from the Classic( Tanqueray gin, bitter, sweet vermouth) to the Bianco( Hendrick’ s gin, Italicus liqueur, Lillet Blanc) and the Robusto, a bold take with PX sherry and Luxardo Bitter Rosso. A curated tasting flight of three mini is priced at $ 22; Lele’ s Roman’ s guests can also order the mini Negroni solo for $ 9. The offering provides a low-commitment entry point to a spirit-forward cocktail. As with the mini cocktails, the increase in smaller-format packaging for spirits, wine and beer also plays into the moderation trend. For instance, Broken Shed Vodka and Tres Agave tequila both launched 375-ml. bottle sizes in 2025. Espolòn Tequila this past August introduced 200-ml. bottles of its blanco and reposado expressions. Lower-ABV wine and spirits also appeal to moderate drinkers both on- and off-premise. Second Sip, a low-ABV London Dry-style gin, was launched last year by industry veterans Leo Robitschek, Nick Strangeway and Sharelle Klaus. The 20 %-ABV gin— half the alcohol of a standard 80-proof gin— addresses the growing appetite for mindful,“ sessionable” cocktail experiences. The lower-proof spirit makes it possible for people to enjoy more Martinis with less regret, extending the occasion rather than cutting it short. Sparkling wine brand Korbel in August launched Korbel Aire, a low-alcohol California champagne with just 7 % ABV and 70 calories per serving. The company says the product extension speaks to the cultural shift towards health and wellness that’ s fueling the increased demand for low-alcohol options. THERE’ S NO-PROOF The alcohol-free movement is thriving, and brands and mixologists alike have spruced up their NA offerings. For instance, the two-Michelin-starred The Inn at Little Washington in Washington, VA, offered two new seasonal mocktails this summer. The Verde Fresca features fresh lime and house-made cucumber-jalapeño syrup, while the Summer’ s Kiss combines watermelon, basil, mint and sparkling water. The Inn at Little Washington created these signature NA drinks to capture the flavors of the season with the balance, creativity, and attention to detail of a handcrafted cocktail. Le Colonial Delray Beach, a French-Vietnamese restaurant in Florida, in August expanded its zero-proof offerings. The Violet Moon($ 15) combines ube syrup, coconut purée and Q Soda; the Lush Paradise($ 15) features Lush Orchard Tea, Seedlip Citrus Botanical and honey syrup; the Saigon Mint Colada($ 13) is made with coconut milk, pineapple, mint, turmeric and nutmeg; and the Lemongrass Spritz($ 15), mixes Seedlip Citrus Botanical, lemongrass syrup, yuzu essence and Q Soda. Chain restaurants have also stepped up their spirit-less sips. In August, Outback Steakhouse is partnering with Ritual Zero Proof to debut new non-alcoholic cocktails at 580 Outback locations across the U. S. The permanent addition to the Booze-Free Bevvies menu include the No Worries‘ Rita, a take on the Outback Classic Margarita, made with Ritual Agave Spirit Alternative and available in mango, watermelon, blackberry and strawberry, and the Tropic Like It’ s Hot, a tropical blend of Ritual Rum Alternative, mango, pineapple and lemonade shaken and finished with a Tajin spice rim. On the retail side, Hudson Dry, a zero-proof bottle shop in Hudson, NY, opened in July. Founder Ryan Curran— formerly of Eleven Madison Park, Big Night Restaurant Group in SF, and Talbott & Arding— has created a shop that focuses on thoughtfully crafted non-alcoholic wine, beer, and spirits, chosen for their craftsmanship, complexity, and flavor and not just because they ' re alcohol free. The store also stocks cocktail mixers, including tonic waters, colas, ginger beers, and sparkling waters, as well as cocktail garnishes, bitters and syrups. Curran plans to launch a craft ice program in-shop and an e-commerce shop this winter. Straddling the on- and off-premise sectors, All The Bitter Zero Proof Lounge combines a refined cocktail bar, educational workshop space, and bottle shop with 200 + non-alcoholic options under one roof. Opened in 2025 by former French Laundry sommeliers Ian and Carly Blessing, the Chico, CA-based concept supports the growing sober-curious culture and creates an inclusive, multi-generational social space. 2) THC DRINKS MOVE INTO MAINSTREAM THC beverages have moved beyond a niche product and into the broader beverage marketplace. Changing consumer attitudes toward alcohol have created opportunities for the category. At the same time, brands and retailers face uncertainty over federal regulations that could reshape the hemp-derived THC market.“ I think the industry is at a really interesting inflection point,” says Angie Stevenson, founder of Alohi.“ Consumer demand is clearly there.” Michael Maxwell, sales director at Looner Sodas, sees THC beverages as part of a broader shift in how younger consumers approach alcohol.“ As alcohol drinks continue to be looked at for their negative side effects— hangovers, calories, perceived bad actions while under the influence— low-dose THC drinks have emerged as an alternative to these negative views,” he says.“ As Millennials and parts of Gen Z have really adopted to alcohol in more moderation than previous generations, THC drinks have become an option to still have your socialized experience while being able to cut alcohol out of the night completely,” he adds. Maxwell does not necessarily see THC beverages taking significant share directly from beer, wine and spirits.“ I think THC drinks are gaining share, but not necessarily taking share,” he says.“ While I am sure there is some crossover from people who would drink alcoholic drinks who now drink THC drinks, I believe most of the share gain is from people who have chosen to leave the alcohol segment altogether, or where never in the alcohol segment to being with.” Stevenson also points to consumers seeking alternatives without abandoning the social rituals associated with drinking.“ People are drinking differently,” she says.“ They’ re becoming much more intentional about alcohol, but they don’ t necessarily want to give up the ritual, connection or fun that comes with having a drink.”“ They still want something beautiful in their hand,” she adds.“ They still want to toast, celebrate, go to dinner and be social. They’ re just looking for more choices in how they do it.” That changing demand is forcing retailers to reconsider shelf space. Maxwell compares the expansion of THC beverages with the growth of non-alcoholic products.“ Now, I go into liquor stores and there are full cooler doors of NA beer, and full aisle runs of non-alcoholic mocktails and wines,” he says.“ Add this to another cooler door for THC drinks and another aisle for THC drinks, and you ' re now completely transforming the makeup of a store.” For THC beverages, education remains important. Stevenson says retailers need to make products“ easy to discover, understand and shop,” while“ education, visibility and trial are huge.” She notes that consumers may not know“ what it is, how much THC is in it or when they would drink it.” Both individuals identify regulation as critical to the category’ s future.“ I think for the segment to survive, we need to see uniform guidance from the federal government,” Maxwell says. Stevenson similarly argues that a sustainable market needs“ clear standards around age restrictions, testing, labeling, dosing and distribution.” For retailers, the coming regulatory decisions could determine how aggressively they invest in the category. But the underlying consumer demand appears to remain, with THC beverages increasingly competing not only with alcoholic drinks but for the same social occasions. 3) IMPORTED, MACRO BEERS SELL Beer faces pressure from changing consumer habits and broader economic challenges. But imports are gaining share within the category as established brands outperform smaller and more experimental offerings. Dr. Andrew Heritage, chief economist for the Beer Institute, recently joined an episode of our podcast, On & Off. During the discussion, he pointed out that imports currently represent one of the strongest segments in the organization’ s data.“ Imports are gaining share this year,” he says.“ Not growing in my data, but gaining share.”( Heritage did note that the mainstream American macro segment, which includes what the broader industry typically calls Premium and Premium Plus, is also“ holding its own right around the overall category trend.”) Imports have faced challenges in recent years, but Heritage says the segment appears to be returning to a trajectory seen earlier in the decade.“ Last year there were a lot of headwinds the category faced, and maybe the import segment faced some of those a bit stronger,” he says, alluding to U. S./ Mexican tariffs.“ Imports, you know, going back to three years ago, imports in my data were growing in 2024. And so it ' s kind of getting back on that trajectory.” The strength of imports also showed up in Heritage’ s analysis of incremental beer sales around major occasions, including the recent World Cup, hosted in North America. Heritage says the data showed that mainstream and import beers accounted for the majority of the additional volume during the soccer tournament, with large established brands leading the gains.“ I estimate 89 % of it was in mainstream and import,” Heritage says. That performance reflects a broader consumer preference for familiar brands during a period of economic pressure. Heritage says consumers who are drinking less beer appear more likely to choose brands they already know rather than experiment.“ In a stress environment, when I ask consumers, why are you drinking less beer? And if you are drinking less beer, you ' re more interested in trying something that ' s a dependable, known brand to you,” he says.“ That does seem to be there ' s some strong evidence for that in my consumer data, and that just tells me that, look, consumers are a little bit less experimental.” That dynamic has put particular pressure on craft beer, which Heritage says has“ underperformed the rest of the category for quite some time.” He attributes part of the challenge to the maturation of the craft segment and to consumers becoming less willing to experiment as economic pressures increase.“ That probably disproportionately hurts craft,” he says. The broader economic environment remains an important factor. Heritage points to inflation and higher costs of living as pressures affecting beverage alcohol consumers.“ There ' s a squeeze on a not all consumers, but on a lot of consumers,” he says.“ We had inflation like we hadn ' t seen in over 45 years.” He adds that younger consumers have been particularly affected by cost-ofliving increases. Still, Heritage does not see younger consumers abandoning beer or alcohol.“ The idea that just Gen Z doesn ' t drink or they don ' t like alcohol is far more myth than reality,” he says.“ I do think they drink differently.” He points to spending data showing that Gen X and Millennials spent roughly the same amount on beverage alcohol at the same life stage as Gen Z reports spending today, after adjusting for inflation. For beer retailers, the current market points toward a consumer who remains engaged with the category, but is increasingly selective about where and how that spending occurs. Imports and other established brands are benefiting from that preference, while craft and other segments face pressure to demonstrate value and give consumers a reason to experiment. 4) EXPERIENCE IS EVERYTHING As consumers have more options for where and how they buy beverage alcohol, retailers are using tastings and events to create reasons for shoppers to visit stores and engage with products. At Top Ten Liquors in Minnesota, Founder Jon Halper says the role of tastings has evolved.“ We don ' t run tastings as a growth strategy. We run them to create an experience in the store,” Halper says. Top Ten hosts weekly tastings on Fridays and Saturdays, its peak shifts. Halper says the impact extends beyond the tasting table itself.“ A great tasting creates an environment where people want to shop,” he explains.“ And the more tables we have going, the more excited customers get— it changes the feel of the whole store, not just the corner the table is in.” The person conducting the tasting plays a central role in that experience. Halper says the traditional“ liquid to lips” philosophy still works, but only when the person pouring can engage shoppers and communicate enthusiasm for the product. Jessica Kogan, founder and CEO of HSP Brands, believes consumers increasingly expect an in-store activation to offer more than product trial.“ Consumers expect more than a sample,” Kogan says.“ They want discovery, a recommendation and a story they can repeat to friends. Increasingly, they also want enough information to feel confident that they are making the right choice.” That makes human interaction increasingly important, even as shoppers have more product information available online.“ Consumers do not have a shortage of choices,” Kogan explains.“ They have a shortage of confidence.” Halper also points to changes in the supplier support behind events.“ Supplier and wholesaler budgets are smaller. Support is harder to get and takes longer to line up,” he says. At the same time, retailers increasingly rely on third-party agencies to staff events, rather than having brand or wholesaler personnel conduct them. Halper says that shift can create challenges when representatives lack product knowledge or customer engagement skills. For retailers, the most effective events tend to give shoppers a specific reason to participate.“ Tailored events work best,” Halper says, citing successful promotions like Women and Bourbon, Cocktailing for Everyone and winemaker appearances.“ When there ' s a theme and a reason to show up, people come and they buy. A generic table doesn ' t do that.” Kogan says the strongest activations also connect the experience before, during and after the event. Digital invitations can bring consumers into the store, while a trained representative can turn product trial into a purchase, and subsequent consumer recommendations can extend the impact beyond the event itself.“ Sampling inside a physical retailer is an extraordinary marketing privilege,” Kogan says.“ Done well, it creates a flywheel: digital media generates awareness, the in-store experience builds trial and confidence, and the initial purchase can become a personal endorsement.” Successful events also need a clear path from engagement to purchase. Halper says two factors separate strong events from weak ones:“ a passionate person pouring” and“ a real promo behind the item so there ' s a need to buy right then.” Inventory is another consideration.“ We won ' t schedule an item unless there ' s real inventory behind it,” he says. Over at Frugal MacDoogal in Nashville, Owner Charlie MacDoogal says,“ It’ s most certainly our opinion that positive customer experiences like tastings is critical.” The large store hosts several in-store sampling events per week, with multiple at the same time.“ We have tastings with knowledgeable people so that customers can properly experience that product,” MacDoogal says.“ That includes mixology, whatever’ s necessary in a cocktail. We try to have events with as much customer interaction as we can. Shaping experience is critical.” This extends beyond events.“ Experience includes our staff assisting customers in the aisles,” MacDoogal says,“ having a dialogue with customers. What are you looking for? Directing customers to the correct category and providing information, whether the customer is familiar with it or wants to experiment.” For Kogan, that interaction can have a longer-term impact on how shoppers view the retailer itself.“ Loyalty is not created by handing someone a coupon,” she says.“ It is created when a shopper thinks,‘ That store always helps me discover something good.’” Technology is beginning to play a larger role in measuring experiential retail. Top Ten rings samples through its POS at a penny, allowing the retailer to track what was poured, what it cost and whether the product subsequently moved. Scheduling, however, remains largely manual, with spreadsheets and calendars used to coordinate events across stores. Halper expects AI to improve that process. Kogan says retailers also need to evaluate events beyond sales generated that day.“ Same-day sales matter enormously, but they are a short-term measure,” she says.“ The more meaningful indicators are sales lift over 15, 30 and 45 days.” Looking toward 2027, Halper says planning will become increasingly important as supplier support tightens.“ Whoever plans furthest ahead gets what ' s left,” he says. He also expects retailers to focus experiential programs on tailored events, new products and categories that consumers may not yet understand. The key, he says, is measuring results beyond attendance.“ Attendance doesn ' t matter. Whether the item sold in the weeks after does.” 5) RTD LAUNCHES KEEP THE PARTY GOING The ready-to-drink( RTD) cocktail party can’ t go on forever, but judging by the plethora of launches this past summer, it’ s showing few signs of slowing. The global RTD cocktail market is projected to reach $ 60 billion by 2036 at a 4.8 % compound annual growth rate( CAGR), according to Future Market Insights. RTDs across all segments reached $ 13.6 billion in 2025, now representing 12.7 % of total off-premise beverage alcohol dollar sales, with spirits-based RTDs surging 25.7 % and offsetting roughly $ 650 million in core spirits declines, according to NIQ data. A sure sign that bigger brands are betting on RTD beverages, Sazerac launched three canned cocktail brands nationwide this past June: Lovebug Hard Cream Soda, Endless Afternoon Whiskey Lemonade, and Buckhorn Whiskey Lemonade. The company, which had acquired RTD BuzzBallz in 2024, also bought the Dirty Shirley in March 2026 and SIPMARGS readyto-drink brands in May 2026. Pernod Ricard is also leaning into RTDs, after it saw the category grow 12 % globally in fiscal 2026. The company will pair that strategy with small formats, on-premise activation, and cultural partnerships. Soft drink brands are competing by spiking their canned offerings. Fresca Hard, a flavored malt beverage featuring the classic citrus taste of Fresca and 4.6 % ABV, hit shelves in May, while Minute Maid Spiked launched a Vodka Lemonade Iced Tea in August. Tequila giant Cuervo got into the RTD game in June with Cuervo Canned Cocktails. The 5.9 % ABV sparkling drinks are available in four flavors: Classic Margarita, Paloma, Strawberry Margarita and Pink Lemonade. All Día, a line of tequila RTD cocktails launched in May, is betting on interest in lower-proof options. Each can has just 2.5 % ABV, roughly half the proof of most RTDs, with 50 to 60 calories per can. Spritz cocktails continue to proliferate in the RTD space. Sparkling wine brand Freixenet in August released Freixenet Solare Spritz, made with 100 % natural Spanish lemon and clementine flavors. The blend is infused with rosemary and thyme, adding a subtle, dry bitterness that balances the citrus notes, the company says. Joel Gott Wines in July came out with Sauvy B, a canned sauvignon blanc spritz with electrolytes that it says brings together wine, spritz culture and functional refreshment. The 100-calorie, 4.5 % ABV Sauvy B is available in lime and grapefruit flavors. Cordials brand Cointreau in May rolled out Cointreau Citrus Spritz, a ready-to-serve sparkling cocktail. Made by blending the brand’ s signature orange liqueur with French white wine and citrus flavors, the 10.5 %-ABV spritz comes in a 750-ml. bottle and is available in two flavors: Orange & Blood Orange and Lemon & Lime. Another trend is the zero-proof spritz RTD. For instance, Molson Coors brand Naked Life unveiled its Italian Spritz RTD in July. Italian Spritz, with 0 % ABV, 0g sugar, and 5 calories, is made with steam-distilled botanicals and natural flavors for bright bitter orange notes balanced by herbal and floral undertones. Non-alcoholic beverage brand Ritual Zero Proof in May debuted its first RTD line of non-alcoholic canned cocktails, available in three flavors: Margarita, G & T, and Spritz. And zero-proof spirits brand Lyre ' s in June expanded its RTD portfolio with Classico Rosé RTD, a canned version of its Classico Sparkling Rosé. TRANSITIONING FROM A NOVELTY The RTD category is transitioning from novelty-driven surge to a more mature, segmented, and strategically competitive phase, according to“ Readyto-Drink( RTDs) At the Turning Point: From Hypergrowth to Strategic Maturity.” The report from the Beverage Information Group provides an overview of the U. S. RTD alcoholic beverages market in 2025, including market dynamics, consumer insights, trends, and future opportunities. Younger consumers, especially Millennials and Gen Z, seek flexible, personalized RTD options that align with wellness and social habits, the report says. Consumers value variety in flavors, ABV levels and formats, with a focus on global flavors, health-conscious options, and premium experiences. RTDs are seen as complementary to other alcohol choices, not substitutes, with preferences shifting toward beer and spirits as consumption diversifies. About 80 % of Gen Z RTD drinkers are interested in non-alcoholic versions, emphasizing demand for flexibility. RTDs are increasingly integrated into regular routines and social occasions beyond casual settings. What’ s the long-term outlook for RTDs? The Beverage Information Group sees RTDs continuing their roll, supported by continued segmentation, innovation discipline, and the category’ s versatility across flavors, formats, and alcohol levels. Future growth will be driven less by volume expansion and more by strategic alignment with evolving consumer lifestyles. 6) PREMIUMIZATION EVOLVES Premiumization remains an important force in beverage alcohol retail, but the concept has changed as consumers become more selective about where they spend their money. Price and packaging alone no longer automatically communicate value.“ Premium used to be easy to signal: a higher price, beautiful packaging, a respected appellation or a compelling origin story,” says Jessica Kogan, founder and CEO of HSP Brands.“ Today, consumers are asking a harder and far more useful question: Why is this worth more?” That question comes as alcohol consumption faces broader pressure. Gallup research released in August 2026 found that 54 % of Americans say they drink alcohol, matching the lowest level in the organization ' s long-running trend. Consumers who continue to drink are also approaching their purchases more selectively. For brands and retailers, drinking less does not necessarily mean spending less per occasion.“ If I am having fewer cocktails or opening fewer bottles of wine, I may be willing to spend more when I do,” Kogan says.“ But the product has to earn its place in my glass, my basket and my home.” Consumers are not necessarily abandoning higher-priced products, Kogan says. Instead, they are becoming more selective about when and where they trade up.“ Consumers are not necessarily saying,‘ I will never spend $ 40 on a bottle again,’” she says.“ They are saying,‘ Give me a reason to spend $ 40 on this bottle.’” That decision increasingly depends on the moment a consumer is shopping for. A bottle purchased as a gift represents a different need than one selected for dinner at home, a gathering with friends or an ordinary evening. For years, the beverage alcohol industry has organized marketing around major occasions and celebrations. That approach can limit opportunities if brands implicitly teach consumers that certain products require holidays or milestones.“ Everyday life is the occasion,” Kogan says.“ Growth will come when we stop asking only,‘ What are we celebrating?’ and start asking,‘ What fits this moment?’” For retailers, that shift can create an opportunity to make the trade-up decision easier. Independent liquor stores can use staff recommendations, tastings and merchandising to connect products with specific needs rather than simply separating higher-priced bottles into a premium section.“ A shelf can tell you the price,” Kogan says.“ A person can tell you why you might love the product.” Retailers can merchandise around moments and solutions: something to bring to dinner, a bottle to share with friends, a gift, a weekend discovery or an upgrade for an otherwise ordinary Tuesday night.“ Consumers do not walk into a store thinking,‘ Today I would like to participate in the premiumization trend,’” Kogan says.“ They walk in thinking,‘ What will I feel good about sharing?’” Looking toward 2027, Kogan sees continued opportunities in ready-todrink products, lower- and no-alcohol options, distinctive spirits and wine brands that offer experiences or credible stories. She cautions against declaring any category incapable of further growth.“ The ceiling is not necessarily a category,” she says.“ It belongs to brands whose only discernible point of difference is price.” The retail takeaway is that premiumization still matters, but simply stocking more expensive products is not enough. Retailers can capture more of those sales by helping shoppers understand the difference between products and connecting trade-up purchases to the moments that matter to them. As Kogan puts it,“ Today, premium is not simply a price point. It is a reason to believe.” 7) CAN WINE RECLAIM ITS PLACE AT THE TABLE? The state of the wine industry continues to be that people aren’ t drinking enough wine. Total wine volume declined 4.5 % to 315.7 million 9-liter cases in 2025, according to the 2026 Wine Handbook, published by the Beverage Information Group. That amounts to a loss of 14.9 million cases from the prior year and the category’ s fourth consecutive annual decline. The back-to-back decreases recorded in 2024(-3.6 %) and 2025 represent the steepest annual volume losses in recent history, underscoring the significant challenges facing the U. S. wine industry. A key issue for the category is that younger people aren’ t embracing wine the way their parents did. It also doesn’ t help that their parents, and grandparents, are moving or have moved past their peak wine-drinking years. What to do to stem or reverse the wine decline? Come Together, A Community for Wine, has created a few wine advocacy campaigns including Come Over October and Share & Pair Sundays. Founded in 2024 by wine writer and author Karen MacNeil, Gino Colangelo of Colangelo & Partners, and Kimberly Noelle Charles, DipWSET, of Charles Communications Associates, the company aims to tell the story of wine ' s historic and contemporary role as a beverage that brings people together. A new national consumer survey conducted by Come Over October in partnership with LocalWineEvents. com finds consumers associate sharing wine with fun, friendship and connection. Nearly half( 41 %) of respondents said that having a specific occasion or reason to gather, such as Come Over October, would make them more likely to host a gathering with wine. Now entering its third year, Come Over October is a national campaign built around a simple invitation: Ask a friend or friends to come over, share some wine and make time for one another during the month. Findings from the 2026 Wine & Gathering Study, which included 1,553 respondents across two surveys, point to opportunities for the wine industry. People may be drinking differently, but they’ re still looking for reasons to connect around wine. When asked what would make them more likely to host a gathering with wine, 44 % of the survey respondents cited easy recipe and food-pairing ideas, 41 % said a specific occasion or reason to gather, and 32 % said wine recommendations for different budgets or occasions. The study also indicated a link to the presence of wine and perceptions of social connection. In the two surveys, respondents were shown versions of the same dinner image— one group saw guests drinking wine, the other saw them drinking water. Those shown the wine version were more likely to describe the people as close or old friends( 48 % vs. 38 % that saw the water version), the atmosphere as warm and relaxed( 73 % vs. 65 %), the occasion as special or memorable( 25 % vs. 16 %), and the gathering as generous and well hosted( 21 % vs. 13 %). With so many competing beverage alcohol options, from spirits and cocktails to beer and hard seltzer, as well as CBD / THC drinks, emphasizing wine’ s role with food can be a differentiator. Share & Pair Sundays, which concluded its second annual nine-week run in June, celebrates the ritual of gathering around wine and food. More than 13,000 winery events took place from May 3 through June 28 this year to bring together consumers, wineries, retailers, restaurants and hospitality partners around shared experiences. 8) WHISKEY’ S MARKET RESET The American whiskey industry enters 2026-27 facing a combination of challenges that Dave Schmier, founder of Proof and Wood, says differs from previous market cycles. Slowing alcohol sales, a growing whiskey oversupply, pressure on the traditional distribution system, rising transportation and other input costs and reduced export opportunities have created a difficult environment for suppliers. Some of the current slowdown may also reflect a return to pre-pandemic consumption patterns. Schmier notes that Covid-era alcohol growth included temporary changes in consumer behavior that the industry has now moved beyond.“ At least part of the issue” may be that“ we are regressing back to pre-Covid levels of consumption,” he suggests. At the same time, other shifts could have longer-term implications. Schmier points to the impact of THC products and GLP-1 drugs, although he says the extent to which those changes prove permanent remains unclear. He sees the movement of consumers toward RTDs and hard seltzers as a more lasting change. For whiskey producers navigating the downturn, Schmier says maintaining a clear identity while adjusting to changing market conditions remains important. He cites a saying attributed to Julian P.“ Pappy” Van Winkle Sr.:“ We make fine bourbon at a profit if we can, at a loss if we must, but always fine bourbon.” For Proof and Wood, that approach aligns with its guiding principle of providing“ good whiskey at a fair price.”“ We are constantly adjusting our offerings and prices to what our customers are looking for,” Schmier says. The current whiskey surplus could also reshape the independent bottler and non-distilling producer segment. Greater barrel availability lowers one barrier to entry and may encourage more companies to enter the category. But Schmier expects the business challenges of distribution, financing and operating costs to separate successful companies from others.“ The glut of whiskey makes it easier for more players to get more involved in bottling their own barrels,” he says.“ It will work out great for some. Others will fall by the wayside as they encounter distribution challenges and the cost of truly running an independent bottler.” Despite the challenges, Schmier sees opportunities for companies willing to differentiate themselves through product development, branding and new routes to consumers. Suppliers should continue to watch evolving distribution opportunities, including direct-to-consumer models, he says. Looking beyond whiskey, Schmier identifies one broader trend that could shape the next chapter of the spirits industry: creating stronger connections between brands and consumers.“ One trend that is important is building community around your brand,” he says. • by MELISSA DOWLING AND KYLE SWARTZ BEVERAGE ALCOHOL CATEGORY TRENDS IN 2026-27 EIGHT Outback Steakhouse is partnering with Ritual Zero Proof to debut new non-alcoholic cocktails such as the No Worries‘ Rita. Above: All The Bitter Zero Proof Lounge in Chico, CA combines a NA cocktail bar, educational workshop and bottle shop. Below: Lele’ s Roman in Brooklyn offers mini Negroni as solo sips or a trio of 2.5-oz. pours. Second Sip, a low-ABV London Dry-style gin, launched in 2025. Clockwise, from top left: All Día, a line of 2.5 %-ABV tequila-based RTD cocktails, launched in May. Freixenet in August released Freixenet Solare Spritz, made with natural Spanish lemon and clementine flavors. Sazerac launched three canned cocktail brands nationwide this past June.