Premium Spirits Spark Consumers In Cocktail Culture

The surge in demand for top-notch spirits is causing a major upheaval in the cocktail sector, prompting a significant evolution. Consumers are actively pursuing top-tier ingredients, fueling a discernible movement towards premiumisation. This shift in consumer preferences is not a fleeting trend but rather a profound revolution that is restructuring the beverage landscape.

The spirits industry is experiencing a major transformation due to the rise in premiumisation. The Confederation of Indian Alcoholic Beverage Companies has highlighted that this shift is most evident in India. Premium spirits above Rs 2,000 are experiencing a growth rate of 48 per cent. This trend is not unique to India. It's a global phenomenon where consumers are more inclined to purchase opulent and high-quality spirits.

This shift is a result of several factors. The appreciation for and admiration of premium spirits is growing. The complexity of the processes involved in creating premium spirits is gaining more knowledge among consumers. They are actively seeking out products that have distinctive flavours and superior quality. Social media have also made it easier to access information about spirits. Now, more than ever before, one can find out about premium products.

The Experience over Excess Mindset
Millennials and Gen-Z customers of today are placing a greater emphasis on quality rather than quantity when making their selections. Instead of consuming large quantities, they are opting for beverages that provide an exceptional taste and a delightful experience. The change in preference, where the emphasis is placed on experience rather than quantity, is clearly observed in the increasing popularity of using high-quality spirits in cocktails. Nowadays, individuals are more willing to indulge in a carefully concocted cocktail that contains premium ingredients.

Furthermore, a range of activities such as community tastings, workshops, and degustation menus are gaining traction among customers. These events provide an opportunity for individuals to explore and appreciate the finer aspects of different spirits, enhancing their overall drinking experience. These events provide a platform for people to discover and enjoy premium spirits in a social environment. Not only do these experiences enlighten customers about the nuances of fine spirits, but they also promote a sense of community and mutual appreciation for exceptional beverages.

Recent statistics further highlight the increasing demand for premium spirits. In India, there has been a 12 per cent rise in the demand for premium and luxe offerings across different spirit categories in FY23. On a global scale, Millennials and Gen-Z are projected to account for 80 per cent of luxury purchases, indicating that the trend toward premiumisation is expected to persist and potentially gain momentum.

Consumer Preferences and Market Adaptations
Consumers are similarly readjusting their preferences, and this is why brands are now developing products and services to fit the preferences of new-age consumers. It is not sustainable to have a single model that represents your entire company. Majority of brands have shifted gears toward

targeting specific markets that interpret and value quality and luxury products for enthusiasts, experimentalists, and connoisseurs. It is crucial to note that tradition and craft are vital elements in Europe, especially limited editions and speciality items such as alcohol or other products with history or a story behind them.

In conclusion, brands that can successfully meet consumers’ new needs and expectations and offer interesting, valuable, and experiential products are likely to succeed. So, it appears that as the focus on movers and shakers to premiumisation becomes firmly established, the future direction of the spirits sector is to improve spirits quality and alcoholic beverages’ consumption experience increasingly.

Vanessa Pandita

Guest Author