$231 Billion in Beverage Alcohol Growth Driven by New Products Over Past Decade

The beverage alcohol industry is experiencing rapid change, with innovation now seen as a key driver of growth across global markets. Industry experts say that companies must pay close attention to emerging trends and new product development if they want to secure future sales and stay competitive.

Luke Tegner, head of consultancy at IWSR, a leading beverage alcohol data and insights provider, recently discussed the importance of innovation during an episode of IWSR’s Speakeasy video series. He described innovation as “strategically fundamental” for drinks businesses. According to IWSR data, the global beer, spirits, and ready-to-drink (RTD) categories grew by $231 billion between 2015 and 2024. More than half of this growth came from products launched in the past decade.

Tegner explained that the impact of innovation varies by category and market. For example, RTDs currently make up less than 5% of total beverage alcohol value but account for about 20% of incremental value from innovation. In contrast, beer tends to have fewer new products, but those that succeed can become significant in value and reach many markets worldwide. Dynamic categories like agave spirits see frequent new brand lines and extensions, while mature categories such as Cognac experience fewer innovations.

IWSR tracks five main types of innovation: completely new brands, brand extensions under existing umbrellas, flavor extensions (which are tracked separately due to their importance), cross-category launches (such as a brand entering RTDs), and geographic expansion into new markets.

Radius, IWSR’s trendspotting service, provides quarterly reports on significant new product developments and trends in beverage alcohol. Claudine Ben-Zenou, founder of Radius, highlighted several influential trends during another Speakeasy episode. She noted a growing consumer interest in multicultural flavors and culinary traditions, driven by increased exposure to diverse foods at markets and restaurants. This trend is now influencing beverage products.

Ben-Zenou also pointed out the rise of savory flavors and pickled ingredients in drinks. At the start of 2025, these trends were just emerging but gained traction over the summer with launches such as carrot liqueurs and tomato-based cocktails. Another notable trend is playfulness in packaging and flavors, inspired by the fashion industry. Brands are introducing whimsical packaging designed for social media sharing and not taking themselves too seriously.

However, Ben-Zenou cautioned that it can be difficult for companies to respond quickly to trends because product development pipelines often take time. By the time a product reaches the market, a trend may already be fading. She emphasized the need for agility and the willingness to take risks on emerging trends before they become mainstream.

Tegner added that understanding consumer moments—specific occasions or reasons people choose certain drinks—will be important for guiding future innovation. He suggested that companies look beyond traditional category boundaries and focus on which products fit upcoming consumer occasions over the next 15 to 24 months.

IWSR’s recent acquisition by WGSN, a global authority on consumer trend forecasting, is expected to strengthen its ability to predict future market dynamics by combining early signals with deep data analysis. This partnership aims to help brands build a more comprehensive view of current and future opportunities.

Both Tegner and Ben-Zenou agreed that brands should not be afraid to embrace new trends early, even if it means taking risks. Waiting too long can result in missed opportunities or being seen as a follower rather than a leader in the market.

As innovation continues to shape the beverage alcohol industry, companies are being urged to act decisively on emerging trends and use data-driven insights to inform their strategies. The ability to identify what consumers will want next—and deliver it quickly—may determine which brands lead in the years ahead.