How alcohol brands need to think about consumer insights


Editor’s note: Jonathan Dore is an executive vice president and founding partner of Reach3 Insights, a marketing research consultancy.

The beverage alcohol industry is feeling the shake-up. After years of steady growth, 2024 delivered an unwelcome surprise: a rare decline in spirits sales, in part due to inflation and the rising cost of essentials. 

At the same time, the latest IWSR report confirms what many in the industry have suspected: moderation isn’t just a passing trend – it’s the new normal. In 2024, the majority of drinkers in 15 key markets reported cutting back, both in how often they drink and how much. Younger generations are increasingly embracing temporary breaks from alcohol, further signaling a shift in consumption habits. Our latest research backs this up, showing that Gen Z and Millennials are drinking less, exploring alternatives and prioritizing wellness over indulgence. This movement is spurring smart brands to create alcohol-free options and even pursuing inventive brand collaborations to appeal to this audience. 

Combine this with the World Health Organization’s recent push to label alcohol as a carcinogenic, and it’s clear: the cultural conversation around drinking is changing fast. The old assumptions about loyalty, occasion-based consumption and premiumization no longer hold the same weight. For beverage alcohol brands, this isn’t just a passing phase – it’s a wake-up call to rethink how they connect with today’s evolving consumers.

Why understanding today’s drinkers requires a new approach to research

The beverage alcohol industry has long relied on insights to drive business decisions. From Circana (formerly IRI) tracking sales trends to consumer research exploring attitudes and preferences, data has always played a key role in shaping strategy. But now, the game is shifting, fast.

Consumer behaviors are evolving in ways that traditional research methods may not fully capture, making it more critical than ever for brands to understand not just what is happening, but why.

Alcohol consumption is deeply tied to social and emotional contexts. Most people drink to unwind, celebrate or connect with others – experiences that are inherently casual and personal. To understand these behaviors, brands need research techniques that reflect the natural flow of real-life decision-making, capturing authentic feedback in a way that feels organic, conversational and unfiltered (like the layered complexity of a New England IPA). The challenge isn’t just doing more research – it’s doing it differently.

In 2025, modern insights must go beyond basic trend tracking and category-level shifts. Brands need to find out:

  • What’s really behind the moderation movement? Are consumers pulling back due to health concerns, shifting social norms or something else?
  • How do today’s drinkers make their decisions? When do they opt for a cocktail versus a mocktail – or skip the drink entirely?
  • Where are the whitespace opportunities? Are new product formats, flavors or wellness-oriented innovations worth betting on?
  • How can brands refine messaging and marketing? What resonates with modern consumers, and how can brands remain relevant?
  • Where should brands invest? Which products and categories are poised for growth, and where should companies rethink their portfolios?

Relying on claimed behavior, vague segmentation and assumptions won’t cut it anymore. The industry needs research methods that reflect the realities of today’s market – fluid, fast-moving and driven by consumers who expect to be heard in new, engaging ways.

Staying ahead of shifting trends with conversational research 

When one of the world’s biggest spirits brands sought to rethink how it engaged with consumers, it knew that traditional surveys and static panels weren’t capturing the full story. The company turned to a more dynamic approach.

The company reimagined its proprietary insight community of legal drinking-age consumers, using a mobile-first, conversational research approach. Instead of formal, static surveys, it engaged consumers in a way that felt more natural – like a real conversation. This captured deeper, more real-time insights on everything from drinking occasions to packaging preferences.

As a result, the spirit brand has been able to:

  • Fine-tune its go-to-market strategy by using real-time consumer feedback to shape packaging, promotions and messaging.
  • Enhance retail execution by better understanding how product placement and in-store marketing resonate.
  • Support key partners by identifying emerging drinking occasions and evolving cocktail preferences.

In addition, a recent project focused on optimizing the launch of a ready-to-drink product used a mix of quantitative and qualitative research, to validate key parts of its strategy while fine-tuning packaging and positioning to better align with consumer expectations. These insights helped ensure a stronger product launch and a more effective retail rollout.

Drinking is no longer a default: Consumers are redefining indulgence

This spirits company’s approach is part of a bigger shift in how beverage alcohol brands need to think about consumer insights. A recent study in Marketing Dive shows that younger consumers aren’t just cutting back on alcohol – they’re actively redefining indulgence and socializing. Conversations around conscious well-being surged by 49% year-over-year, while interest in alternative and expanded beverage options grew by 58%. At the same time, self-love and personal betterment have become dominant themes, with discussions on these topics rising 37%.

This tells us something critical: today’s consumers aren’t rejecting indulgence – they’re reframing it. They still want memorable experiences, but they’re more intentional about what, when and why they drink. That means beverage alcohol brands can’t afford to rely on assumptions or outdated segmentation models. They need research approaches that go deeper.

The brands that succeed in this new landscape will be the ones that move past traditional, one-size-fits-all insights and embrace methods that capture how consumers think, feel and act. Conversational research is one way to meet consumers where they are – engaging with them in a way that feels natural, personal and reflective of their evolving lifestyles. In a world where drinking is no longer a default, understanding why people drink – or don’t – is more important than ever.