June 3, 2025 – The rise in grocery prices has led consumers in the US and Canada to make changes in their eating and drinking behaviors. They are enjoying more meals at home, combined with fewer eating and drinking occasions away from home, and they are changing to more budget-friendly brands. Although consumer trends surveys show that North American consumers have not yet changed their drinking habits for alcohol, they may be poised to alter their drinking behaviors because of the effect of pending tariffs on spending and financial security. This may affect the willingness of consumers in the US and Canada to try new alcoholic beverage products and flavors.
However, brands need to focus on flavor and taste innovation because these features attract consumers. It is important for alcoholic beverage brands to overcome consumer concerns about health and budget by combining flavor, taste, health, and value.
Flavored Alcoholic Beverages are the Inspiration
In recent years, flavored pre-mixed cocktails and flavored malt beverage products have generated excitement in alcoholic beverage innovation. Pre-mixed cocktails and flavored malt beverages occupy a small niche among alcoholic beverages. But they provide excitement and spark innovation because of their exciting flavors, fizzy carbonation, and on-the-go format.
It’s Important to be Wise
One of the Innova Market Insights Top 10 Trends 2025 is Wildly Inventive, referring to tastes and flavors. Although consumers seek bold and exciting flavors, they also want flavors that offer comfort because they are familiar with them. This can be an innovation pathway for brands to combine excitement with familiarity in alcoholic beverages in the US and Canada.
Alcoholic Beverage Products Can Be Better-for-You
According to consumer trends research, consumers may not consider alcoholic beverages to be healthy. However, US and Canadian consumers tend not to cut back on alcoholic beverage because of health. One path for brands is to tie into diet trends and ingredient trends that take the focus away from the unhealthy reputation of alcoholic beverages.
Alcoholic Beverage Brands Connect Several Features
Alcoholic beverage brands can connect many product characteristics by including ties to emotions, season of the year, time of day, special occasions, and different lifestyles. Flavor is an important characteristic, too. Because US and Canadian alcohol consumption is relatively steady, innovation in flavor can help attract and retain consumers. Tying alcoholic beverages into occasions could also maintain consumption. Brands also need to recognize that consumers are drinking more mindfully and face budget pressures.
Flavor is Important
Consumption of alcoholic beverages in North America is relatively steady and can be aided by product innovation in flavors. Flavor trial is more common in food than in alcoholic beverages, even though consumers in the US and Canada say that taste and flavor play an important role in which alcoholic beverage products they choose. Consumers are concerned about being disappointed with the new flavor. That is why brands need to meld bold innovation with familiar flavors.
Alcoholic beverage trends indicate that consumer tastes in alcoholic beverages are changing. However, changing tastes in the US and Canada could support increased consumption of alcohol and exploration of new flavors. Tastes, not just flavors, are shaping alcoholic beverage shifts.
Changing tastes are more likely to increase consumption than reduce, suggesting that flavor innovation is having an impact and consumers are still trying new options. Keep in mind that health and budget impact changes in alcoholic beverage consumption and could drive North American consumers toward value, health features, less alcohol by volume, and more natural ingredients and flavors.
Make-or-Break with Flavor and More
Flavor and taste are essential as part of marketing alcoholic beverages. But brands also need to pay attention to ingredients, quality, and price. That is why brands need to connect with consumers and meet their expectations for taste to boost brand loyalty. Flavor does not have to be super-innovative, but it does need to appeal to consumers.
Consumers in the US and Canada have many reasons for drinking alcoholic beverage products, with the main ones being taste and relaxation. In line with alcoholic beverage trends, one way to innovate flavor is to pair or stack flavors together, creating more complex and engaging taste experiences.
Find the Benefits Balance Between Whimsical and Relaxation
Innova’s Top 10 Trend 2025 of Wildly Inventive shows the importance of flavors and ingredients for making consumers more aware of products and encouraging trials. What’s also needed are flavor options, clean flavors, clean ingredients, and other benefits.
What’s Next in North American Alcoholic Beverage Trends?
Since consumers in the US and Canada are enjoying drinks at home more often, brands can offer flavors and options that encourage trial in the home. North American consumers are expected to continue drinking mindfully for health and for budget. Alcoholic beverage brands need to ensure that their products are accessible in terms of health and budget. Consumers are expected to continue seeking familiar flavors, along with additional secondary flavors that accentuate the familiar flavor, elevate quality, and express creativity. Better-for-you products do not yet have a major presence but could help alcoholic beverage brands to attract new consumers. These could include low alcohol and non-alcohol beverage options. Another area of opportunity for alcoholic beverages in the US and Canada is sourcing ingredients locally rather than importing them.
This article is based on Innova’s Flavors in Alcoholic Beverages in the US & Canada report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
