Last updated on July 10th, 2025

As anyone in the alcoholic beverage space is aware, societal and generational trends are major drivers of consumer behavior and product sales. The last several years have seen a prominent shift in consumer priorities and preferences, especially among younger generations of buyers. This shift is propelled largely by an increased focus on health and mindfulness, a desire for convenience and variety, and the growing influence of digital marketing, among other factors. So, how can alcoholic beverage producers adapt to these changing preferences?

First, let’s look at some of the priorities influencing alcoholic beverage choices in 2025, particularly among younger generations.

Priorities and Factors Driving Consumer Choices in 2025

• Health and wellness
• Convenience
• Mindful drinking
• Sustainability and ingredient transparency
• Innovative and exciting flavors
• Experience-driven offerings
• Social media influence

How to Leverage Changing Consumer Preferences

1. Focus efforts on social media marketing: It’s no secret that younger generations are heavily influenced by internet trends and social media. NIQ, in its analysis of alcoholic beverage trends for 2025, states, “Digital engagement is revolutionizing the beverage industry, reshaping how consumers discover, interact with, and purchase their favorite brands. Social media platforms like Instagram, TikTok, and Pinterest are leading this transformation, serving as hubs for inspiration, education, and commerce.” Brewers and distillers can make the most of digital marketing opportunities by utilizing social media platforms, partnering with social media influencers, and creating shareable brand experiences and stories.
2. Get on the RTD train: Ready-to-drink cocktails continue to grow in popularity, as younger consumers seek convenience and exciting new flavor profiles. NIQ reports, “With strong growth between 4% and 5% YoY for the past 4 years, RTD now makes up 12% share of Total Alcohol dollar sales. Convenience, versatility, and innovation are driving factors behind this trend, as consumers increasingly gravitate toward pre-mixed beverages that offer high-quality taste without the need for preparation.”
3. Consider health-conscious consumers: Younger generations are increasingly prioritizing moderation and mindfulness in their drinking habits, due to a growing focus on health and wellness. Research and Markets reports, “As health-conscious consumers are focusing on wellness, the demand for low-alcohol, lower-calorie, and alcohol-free beverages has increased…These options appeal to people who want to indulge in the social benefits of drinking without sacrificing their health objectives.” Alcoholic beverage producers can adapt to these shifting consumer preferences by offering healthier or low/no-alcohol options alongside their traditional offerings.
4. Focus on experiences: Though many young people are leaning towards moderation, many are still interested in the social aspect of drinking. Interactive or immersive experiences can make your brewery or distillery more appealing to younger consumers. Entertainment such as games and live music, unique food options, special events, and interactive elements such as self-pour stations all make for a more memorable guest experience.
5. Lean into sustainable practices and ingredient transparency: Many consumers, particularly members of younger generations, continue to prioritize sustainability and transparent ingredient sourcing in 2025. OhBEV, in its 2025 Trends and Forecast report, states, “From water conservation in beer brewing to solar-powered distilleries for whiskey, meaningful environmental initiatives resonate deeply with Gen Z and Millennials. Storytelling around farmland stewardship, carbon neutrality, or local sourcing is increasingly vital.”

Potential Tax Savings When You Innovate

 Adapting your business to changing consumer preferences not only encourages growth, but it may also save you on taxes. For example, if you choose to develop new products or flavors to meet shifting demand, you may be eligible for federal research and development tax credits. Some examples of activities that may qualify for R&D credits are: developing new products, updating fermentation techniques, experimenting with new ingredients, creating new flavors, and improving production processes.

For more information on tax-saving opportunities—or for any of your accounting, advisory, tax, and audit needs—don’t hesitate to reach out to our experts at RBT CPAs. Contact us today to find out how we can be Remarkably Better Together.