Ready-to-drink cocktails (RTDs), non-alcoholic (NA) adult beverages and lager are expected to grow on Drizly in 2023, according to the alcohol e-commerce platform’s 2023 BevAlc Trend Report.
As 2022 came to a close, Drizly combined sales data on the platform with responses from an October consumer survey to predict what the “biggest trends in beverage alcohol” will be in 2023.
RTD Growth to Continue Year-Round
RTDs are a “bar cart staple” year-round, according to Drizly. Nearly half of respondents in its October survey (47%) said they expect to drink RTDs regardless of the season in 2023, suggesting the segment has moved “beyond just spring and summertime sipping.”
RTDs have recorded exponential growth since 2019. Within the spirits category, the segment gained share +400% year-over-year (YoY) from 2019 to 2022 on Drizly. That growth is expected to continue in 2023.
‘Portable’ Bev-Alc Growth to Continue
Similarly, “portable” bev-alc options, including RTDs, are expected to grow in 2023.
More than one-third of survey respondents (36%) said tequila-based RTDs are a “top emerging drink category” they expect to try this year. Additionally, one-in-10 respondents expect to drink more NA RTD cocktails in 2023, the most within the total NA category, including NA products within beer, wine and spirits.
A ‘Comeback’ for Lager
More than one-third of survey respondents (38%) who said they plan to spend the most on beer in 2023, said they will buy lager the most in 2023. The second most popular choice within beer was hard seltzer (37%).
Lager sales are already trending upward on Drizly, increasing +20% from 2020 to 2022, despite some “past share losses,” according to the report. Over Labor Day weekend, light lager (+9%) and American lager (+19%) both grew share of Drizly sales YoY in 2022 versus 2021.
Drizly expects lager trends to continue in 2023, with the segment taking up “more space in the cooler.”
Consumers Searching for Deals in Response to Inflation
More than one-third of respondents (34%) said they will “proactively shop for drink deals in 2023 due to inflation.”
Beer – particularly craft beer – has often been thought of as inflation-resistant, and there is “very little evidence” of inflationary pressures causing consumers to trade down in the category, Bart Watson, chief economist at the Brewers Association (BA), said during Brewbound Live in November. However, retailers were precautionary last year, with 38% putting more “deals, sale and loyalty programs in place in 2022,” according to Drizly’s annual Retail Report.
What Came True in 2022: Gains for Tequila, NA and RTDs
In addition to looking ahead to 2023, Drizly looked back at its 2022 predictions and what did or did not come to fruition.
1. Tequila to close in on vodka as second top-selling spirit
Tequila did not overtake vodka as the second best-selling spirit on Drizly in 2022, but it did record gains, increasing share of the liquor category +1% YoY from 18% to 19%.
Vodka maintained a 23% share of the category.
“Vodka’s sustained share this year did come as a bit of a surprise,” Liz Paquette, Drizly head of consumer insights, said in the 2022 look-back report. “While share may continue to hold steady, retailer outlook for the category remains underwhelming.
“Given tequila’s skyrocketing growth in 2021, its continued rise in 2022 remained impressive, especially relative to the overall size of the category,” she continued.
2. Consumers will “expect more from e-commerce”
Inflationary pressures were a “somewhat unexpected” factor in consumer buying habits in 2022, according to Paquette. While inflation did not have a significant impact on how much consumers ordered bev-alc for delivery, “consumer expectations increase when they are paying for delivery, particularly as inflation drives price sensitivity.”
The majority of retailers (73%) said shoppers are “still willing to pay for the convenience of delivery,” according to Drizly’s 2022 Retail Report. However, 43% of respondents said inflation caused consumers to purchase “slightly less expensive options than they would normally choose.”
3. NA will continue to grow
Share of NA adult beverages increased across beer, wine and spirits in 2022, according to Drizly. The total NA category increased share of Drizly dollar sales +200% YoY from 0.1% to 0.3% – one of the platform’s “fastest growing categories year-over-year in 2022.”
“Product innovation has been a key driver of this category’s growth,” Paquette said. “In 2022 to date there are over 120 non-alcoholic drinks brands in the Drizly catalog, compared to 70 in the same time period in 2021.”
4. Hard seltzer “competitors” will see gains
RTDs – “one of hard seltzer’s main competitors” – recorded “significant gains” in 2022, increasing share of total Drizly sales +35% YoY from 2% to 2.7%.
Hard seltzer remained “larger” than RTDs as a segment in 2022, with a 3.1% share of Drizly sales. However, the segment lost 0.7% share YOY.
“As with the non-alcoholic drinks category, product innovation and new entrants were key growth drivers for the RTD category this year,” Paquette said. “The category grew from 458 brands in 2021 to 570 in 2022 to year-to-date, which is a 24% increase over the previous year.”