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Popular Alcohol Categories Soaring In The US Beverage Market


As the innovations in wine and spirits keep increasing, the demand for new and unique alcohol rises. Here are some of the top alcohol categories that are successfully selling in the U.S. market.

With an element of experimentation and innovation at play, alcoholic as well as non-alcoholic brands across the world are responding to the unexplored drinks categories in the market. According to Statista, the revenue for the alcohol drinks market amounted to US$284,101 million in 2022 and is expected to grow annually by 7.45% in the US. With the increase in eCommerce sales especially during the pandemic, beverage brands are closely working on their business models and designing diverse portfolios to keep up with the market trends. Brands are also looking at cross-category products and M&As to cut down on costs and establish alternate growth opportunities for their brand. Changing consumer behaviors, technological developments, growing eCommerce, and broader market reach are some of the common motivations forcing brands to come up with unique categories. Here are some of the alcohol categories in the market that already have a soaring demand. 


“Drinks companies are responding to this evolving consumer behavior by moving into previously unexplored categories to diversify their portfolio and in some cases, proactively plan for the softening or decline of existing core brands and categories.” Brandy Rand, COO, IWSR

1. No - and Low-Alcohol Beverages

The no-and low-alcohol trend continues to grow with the Sober Curious movement where people are opting for healthier options. A non-alcoholic beverage is simply a version of the alcoholic beverage but without alcohol. A low-alcohol beverage contains an Alcoholic Strength By Volume (ABV) between 0.05% and 1.2%. To ensure there is something for every person’s taste buds, brands are entering the non-alcoholic or low alcoholic market. The demand for them has increased over the years and the variety of options has become vast, whether it is non-alcoholic beer or a non-alcoholic Gin. Consumers especially Millenials and Gen Z are consciously making healthier choices and reducing their alcohol intake, that is why this category is seen to be expanding over the next few years. 

Monday Zero Alcohol Gin

Monday Zero Alcohol Gin

- Zero Alcohol Gin

- Complex and aromatic blend of juniper, citrus, spices, and natural botanicals 

- Zero carbs, No sugar, Zero calories

- Vegan, Gluten-free, Keto-friendly 

USD $40

Buy here

Ritual Zero Proof Whiskey Alternative

Ritual Zero Proof Whiskey Alternative

- Soul-warming heat and rich spice of a great American whiskey

- Overtones of vanilla and oak 

- Notes of Stone fruit and caramel

- Finish of a pleasant heat

- 10 calories and Zero alcohol

- Gluten-free

USD $29.99

Buy here

2. Hard Seltzers

Hard Seltzer, also known as Alcohol Seltzer is hard sparkling alcohol-water. It is a type of highball drink that contains seltzer, alcohol, and usually some fruit flavorings. They are a significant part of the RTD category and accounted for US$4.5 billion in 2021 with White Claw having the most market share. Rapidly growing in popularity with fun and fruity flavors, they are growing in demand and offer a great variety. The global hard seltzer market is projected to be worth the US $49.4 billion by 2028 and the demand is already seen to be increasing.

White Claw Hard Seltzer

White Claw Hard Seltzer

- Made from a blend of Seltzer water, gluten-free alcohol base, and hint of fruit flavor

- Comes in a variety of flavors

USD $2.49 for 16oz Can

Buy here

3. Hard Kombucha

Similar to Hard Seltzers, Hard Kombuchas are fermented probiotics with 5% to 11% ABV due to an extra round of fermentation. Growing in popularity in the U.S. for the past 2 years, the hard kombuchas category has projected a surge of 34% in the US over the next five years according to IWSR. The flavor profile of hard kombuchas usually appeals to craft sour beer and natural wine lovers. This fermented beverage is sold at a premium price in the market as it is made with natural flavors. The average price is $3.80 for 12oz which is higher than the price of a leading hard seltzer brand.

JuneShine Midnight Painkiller Hard Kombucha

JuneShine Midnight Painkiller Hard Kombucha

- Bold and flavorful

- Tiki Cocktail with pineapple, coconut, orange, activated charcoal, and nutmeg

- 6% ABV

USD $6.99 for 16oz Can

Buy here

4. Singani

Also known as the cousin of Pisco, Singani is a Bolivian Brandy and Bolivia’s national drink. Made from the Muscat of Alexandria grapes in the Tarija region, this eau-de-vie has an alcohol content of 40% ABV. The craze for Singani in cocktails is increasing in the U.S. market. Director Steven Soderbergh became an instant fan of this alcohol when he tried it for the first time and now has his own brand by the name Singani 63. Traditionally drank on the rocks with lime or with ginger ale and lime, some people also enjoy it in a classic whiskey or gin cocktail or mixed with flavored soda as a refreshing summer beverage.

Singani 63

Singani 63

- Made with Muscat of Alexandria grapes

- Brandy

- Light perfume of floral and grape aromas

- Notes of mountain meadow flowers, white pepper, jasmine, orange blossom, and honeysuckle

- Short, light, clean, and smooth finish

USD $36.99

Buy here

5. Natural Wine

A popular and growing category over the years has been Natural Wines. They have a unique taste and to some, they may taste flat while to some tasty. These wines are made with organic ingredients, no additives, and no intervention during the winemaking process. Although a very old category of wines, their demand recently rose in the U.S. market and has been projected to reach US$16,647.81 million by 2027 according to Insight Partners. With consumers opting for healthier choices and inclining towards sustainable alternatives, a large number of retailers and on-trade establishments are offering some natural wine brand choices to them. They are a good way to approach a customer who is ready to try something new.

Broadside Margarita Vineyards Merlot 2019

Broadside Margarita Vineyards Merlot 2019

- Merlot and Cabernet Sauvignon

- Natural Wine from Paso Robles

- 14.5% ABV

- Complex aromas of cocoa dust, cedar, tobacco, ripe boysenberry, and fresh herbs on the nose

- Notes of black cherry cola, rhubarb pie filling, with a hint of black pepper along with soft and supple tannins

- Made with sustainable practices

USD $16.99

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6. Baiju

A colorless liquor from China, Baiju is made from whole grains like peas, rice, barley, wheat, or millet and typically has an alcohol strength between 40% to 60% ABV. The most-selling brand of Baiju, Kweichow Moutai, recently passed Digeao and became the world’s biggest spirit brand. Baiju is an important part of China’s drinking culture and the demand for this pungent liquor is spreading across the globe with the famous Kweichow Moutai valued at US$373 billion as of October 2021. The U.S. consumers are ready to embrace the Chinese drinking culture with the Ming River Baiju which is a collaboration between Luzhou Laojiao, China’s oldest distillery, and a US enterprise. With a great amount of Chinese population in the U.S., the sales for Baiju never dips and is seen to be a rising alcohol category.

Ming River Sichuan Baiju

Ming River Sichuan Baiju

- Balanced and complex spirit

- Made in Sichuan, China

- Bold spirits with notes of pineapple and anise and a lingering finish

- 45% ABV

USD $34.99

Buy here

7. Mezcal

Tequila’s smoky cousin, Mezcal is an agave-based spirit that has surpassed the rum sales in the U.S. Mezcal can be made from 40 different varieties of agave and can be made in 9 different areas of Mexico. 

According to the IWSR, Agave spirits have become the third-largest spirits category in the US and their sales have risen by 15.9% in volume in 2021. It is a growing sprits category amongst the millennials and is expected to reach US$52.11 million by 2027. The US currently leads the Mezcal market as a full-fledged category and is seen to be on the menus of numerous cocktail bars. The demand for this spirit keeps increasing and is soon going to be followed by other agave spirits such as Añejo and Reposado as consumers are ready to explore more.

Mezcal Vago Emigdio Jarquín

Mezcal Vago Emigdio Jarquín

- Mineral-rich and saline driven style of mezcal 

- Distinct notes of terroir from the fertile valley of Miahuatlan, Oaxaca

- 50.3% ABV

USD $51.99

Buy here

Article by Shreya Kohli, Beverage Trade Network

Header Image Source - @juneshineco on