December 5, 2025 – In the US and Canadian beverage market, the alcohol category is experiencing shifts, due to changing consumer preferences. Fierce competition between categories, health-consciousness, and declining alcohol use have been putting pressure on brands. Innova’s “Alcoholic Beverage Occasions in the US & Canada” report examines the key trends and underscores strategic opportunities.
What Are Existing Challenges in the Alcoholic Beverage Market?
As health concerns rise, alcohol is becoming a harder sell. Brands are facing pressure to diversify their products, including the expansion into non-alcoholic beverage options. In 2025, 31% of consumers have reported completely abstaining from alcohol, with Gen Z and Boomers leading the charge. Although alcohol consumption has decreased among consumers in the US and Canadian markets, social occasions that have normalized alcohol are here to stay. Therefore, brands have the opportunity to craft non-alcoholic wines, spirits, or beers to help consumers practice moderation in social moments or enjoy their favorite beverages without guilt. Similarities in claims and occasions also exist between categories, highlighting how alcohol categories should consider how to adapt their messaging.
Leading Claims & Marketing for Occasions
Alcoholic beverage trends demonstrate that in the beer category, traditionally crafted is the leading claim in both US and Canadian markets, followed by premium quality and real ingredients. For wine, no artificial flavors or colors, real ingredients, and traditionally crafted are important to consumers. However, these leading claims only resonate with one-quarter or less consumers, exemplifying that brands need to find other opportunities to engage consumers. This also extends to spirit-driven products.
Due to the lack of effective claims, marketing alcohol for specific occasions will become more popular. These include group, solo, formal, and casual occasions. For example, 42% of consumers turn to both beer and wine when they are with friends and family. Consumers also turn to both categories for solo occasions. In stores, occasion-based marketing might look like suggested pairings, such as wines or beers with salty snacks. In addition, brands that are available at concerts, sports matches, and other events can also stay relevant and on consumers’ radars.
Gen Z and Millennial Drinking Habits
Alcoholic beverage trends indicate that Gen Z turns to hard alcohol more than other generations, both at home and in social environments, while less than one-third reach for beer. Convenience and ease are also attractive attributes to this generation, and as a result, Gen Z leads several occasions for premixed cocktails. In contrast, Millennials prefer wine, with 33% associating wine with “me-time.”
Globally, relaxed sociability has been a widespread consumer trend, and it also has strong implications for Gen Z and Millennials in the US and Canadian markets. Currently, a majority of consumers choose casual over formal gatherings, and drinking with friends and family is the top occasion for all types of alcohol. The rise of low to no alcohol drinks is also an important driver, and in the US market, 29% of consumers choose non-alcoholic beverages when they are with friends and family. This trend is largely driven by Millennials and Gen Z.
The Evolution of Ready-to-Drink
Although the original hard seltzers and ready-to-drink cocktails were often carbonated, no carbonation claims are now commonplace for alcoholic beverage trends. Beyond tailoring to consumers who prefer non-carbonated offerings, new iterations also come with claims surrounding lightness and experiencing less bloating. Natural juices are also featured as key ingredients in many cases. For example, White Claw’s Clawtails Variety Pack Premium Malt Beverage drinks highlight lightly sparkling features with real juice, and natural flavors.
Engaging with Pop Culture Moments
Pop culture serves as an avenue to engage with younger consumers. Especially with at-home moments, collaborations or tie-ins with social media trends or streaming services serve as another engagement opportunity for Gen Z and Millennials. However, this will require tailoring for different generations. 37% of Gen X consumers also drink premixed cocktails when watching TV, so TV-tie-ins or promotions could be influential for this generation as well.
Unique Flavor Inspirations
Fun and unique flavors can motivate consumers to pair products with food and mixers. Salty snacks and fruity flavors are becoming increasingly popular, such as pretzel-flavored beers or grapefruit and jalapeno flavored whiskey. There has also been a 20% year-over-year growth of new beer products with dessert flavors. Moreover, brands are encouraging consumers to create fun social dynamics surrounding their products through trial with others, helping consumers feel justified in purchases that might otherwise feel like niche products or splurges.
What’s Next for Alcoholic Beverage Occasions in the US & Canada?
Brands can expect a few important opportunities when considering the future of the alcoholic beverage market. As wellness and health become increasingly important, alcohol brands will look to extend into non-alcoholic categories, such as functional beverages. Occasions are also beginning to blur, especially relating to casual occasions. Therefore, self-care blends or those intended for small social gatherings will be popularized. Pop culture moments will also serve as key partners for collaborations.
This article is based on Innova’s Alcoholic Beverage Occasions in the US & Canada report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more