The Indian alcobev industry underwent a significant transformation in the post pandemic world, driven by shifting consumer preferences and the increasing influence of social media and community conversations. These trends were not mere ripples but tidal waves, set to redefine how we navigate 2024 and beyond. From the surging popularity of social commerce and the pervasive impact of AI- powered marketing to the escalating demand for personalized and purpose-driven experiences that make for meaningful content, brands are challenged to be agile and adaptable to stay ahead of the curve.
Conscious Consumption on the Rise:
A trend gaining momentum is the concept of conscious consumption. Consumers are becoming more mindful of what, and how much, they consume. There’s a shift towards savouring the drinking experience, opting for longer, sessionable drinks over binge drinking. Additionally, the role of alcohol as a complementary experience is transforming the way people engage with beverages. While food is integral to socialising – the role of alcohol in all of this has evolved to something that is savoured rather than binged on. This “second screen” behaviour, where individuals enjoy drinks while participating in virtual events or engaging in other activities, encourages responsible drinking. Brands like ours – whether it is Singleton, Tanqueray, Godawan or Don Julio – are leading this transformation by positioning their brand worlds and serves as accompaniments to a wide array of social experiences.
Casual Occasions Take Centre Stage:
People are prioritizing comfort and connection over rigid etiquette. Gone are the days of feeling pressured to don a suit or squeeze into uncomfortable heels. Today’s consumers crave genuine interactions and shared experiences, not stuffy airs and forced conversations. The trend of formal gatherings is giving way to relaxed accessible get-togethers, emphasizing inclusivity, and fostering connections. Industry players can anticipate a surge in demand for beverages and serve rituals that complement these informal settings, providing a diverse range of options for various tastes and preferences. We are talking everything from sipping tequilas like Don Julio 1942 to Johnnie Walker highballs, and equally a glass of Tanqueray 0.0 in the same session.
Diversity and Inclusion as Catalysts
Social dynamics are undergoing a profound change, challenging traditional gender norms. This shift is also a significant factor influencing beverage choices. Brands are responding by re-evaluating marketing strategies and product offerings to align with the changing tastes and expanded repertoires. In this dynamism, brands need to be ahead of the culture curve with their ears close to where the conversations are happening so that they can the catalyst for change.
Embracing Mixability and Quest for Novelty:
A notable trend revolves around the art and science of mixing in bars just like some master distillers create magic by blending Scotch expressions. The ask for this skill is extending beyond high-end establishments to personal spaces. Consumers are experimenting with blending spirits to create personalized mixed drinks, reflecting a broader trend of premiumization in Indian alcohol consumption. As affluence increases, consumers seek premium beverage experiences, driving experimentation with artisanal and premium offerings. This trend aligns with the celebration of diverse cultural traditions in India, with brands tailoring offerings to unique occasions.
Globally Inspired, Locally Rooted:
We’re witnessing a dual movement of localization and globalization. Brands’ story telling is increasingly incorporating local narratives and ingredients, creating region-specific offerings. Godawan, for example, is a creator’s delight. Its story, woven from the desert of Rajasthan, is infused with the spirit of Indian artisanship and ingenuity, rooted in a deep respect for tradition. Local stories imbue the drinks with an elevated drinking experience, turning each sip into a journey through a specific place and fostering deeper connections with consumers.
Simultaneously, there’s a growing interest in global trends among consumers that’s fostering an evolved and diverse palate for the industry. Just take tequila, for example. There’s a tequila revolution coming, and we’ve responded by bringing the global favourite, Don Julio, to India.
Digital Transformation Reshaping Engagement:
The media landscape is undergoing a profound shift towards always-on platforms – online or offline. On the one hand, it’s witnessing a dynamic media landscape where digital platforms reign supreme. This presents a goldmine of opportunities for brands to connect with their target audience in a more targeted, interactive, and immersive way. On the other hand, e-commerce in the Alcobev industry faces stiff regulatory constraints in India, and companies are actively exploring creative digital avenues to bridge the gap between the physical and digital realms. Investments in anti- counterfeiting measures, track-and-trace technologies, and digital marketing are on the rise to enhance consumer engagement.
Sustainability and Collaboration Driving Innovation:
Consumers are becoming increasingly conscious of their environmental and social impact, demanding more from the brands they choose, even before they make their purchase decision. This has led to a surge in sustainability initiatives and collaborative efforts across the industry, fostering a hotbed of innovation. In the pursuit of innovation, industry players are also fostering collaborations with startups, institutions, and fellow industry participants.
Conclusion:
As we navigate the currents of 2024, it’s clear that the future belongs to the nimble and adaptable. Consumers are calling the shots, demanding mindful consumption, casual connections, and personalized experiences. This transformation is not just about changing consumer preferences; it’s about a fundamental shift in values and priorities. The industry must adapt to this new reality, not just to survive but to thrive. By embracing these trends and putting the needs of the evolving consumer at the forefront, the Indian alcobev industry can raise a glass to a future filled with possibility and shared success.
The author is the Chief Business Development Officer at Diageo India