When thinking of a liquor store, most people have a pretty standard picture in their head.
They see a wall of fridges full of beer, a section for wines, and shelves stocked with liquor and spirits. Every shop might have a specialty or a wider selection, but those are the basics. Nothing fundamental in the business changes… right?
More is changing than you might think. The latest liquor industry trends mark some pretty seismic shifts, from decreased alcohol consumption among younger people to beer and wine losing their spots at the top of liquor store sales.
In this article, we’ll cover five major trends from 2024 and beyond that you can use to keep your customers happy, stay competitive, and find success.
Retail trends are changing constantly. In the liquor industry, we’ve seen the rise of craft beer and then the shift to craft distilleries and premium home cocktails. Keeping up with every single trend might seem like a fool’s errand.
Liquor stores that ignore the most significant industry trends may gradually become less relevant to modern customers. More importantly, not following liquor industry trends means missing big money-making opportunities.
Does that mean you should spend every waking moment looking at TikTok or scrolling online to ride the latest trends? Of course not, you’ve got more important things to do.
Instead, take some time once every quarter or a couple of times a year to read industry reports, check in on your sales data, and make stock adjustments. That way you can make strategic, incremental changes and monitor the results.
The liquor industry is changing significantly — but that’s nothing to be afraid of. Staying aware of the latest trends can set your store up for success.
Here are five major trends to keep ahead of.
Inflation drove up prices in pretty much every retail sector, including alcohol. The cost of living has also increased across the country, meaning people are less willing to take a chance on pricier bottles of wine or spirits.
That’s not to say people won’t spend money on higher-end products. Instead, it means that people want to have high confidence when spending more.
This is where your expertise comes in — train staff to engage with customers and give them personal recommendations. Or create signage and displays highlighting staff picks. Point out tasting notes, food pairings, cocktail recipes, and other information that will help a customer feel good about spending extra money.
Drinking habits are changing among younger generations.
While Millennials are drinking less beer, Gen Z is drinking less altogether — almost 20% less by some estimates. With an increased focus on health, more people are experimenting with dry months and alcohol alternatives (also called "sober-curious" in the industry)
This trend is creating seismic shifts in liquor retail. But it’s not all bad news. Several high-quality and premium NA alternatives have hit the scene, allowing liquor retailers to appeal to non-drinkers.
Stocking products like NA beers and mocktails is a great way to expand your reach. Group types of products together to avoid having a single NA section (e.g., put NA beers together with your beers, NA Moscow mules with your other canned cocktails, etc.).
This highlights that many NA alternatives are of comparable quality to their alcoholic counterparts and doesn’t single out any non-drinking customers. Be sure to highlight your NA options in your liquor store marketing strategy.
Consumers enjoy the convenience of shopping online, and an increasing number of people want the ability to order alcohol, craft beer, and wine directly from suppliers. This has led trade groups to lobby for looser government restrictions on direct-to-consumer sales.
Unfortunately, many liquor stores haven’t been as quick to adapt to the e-commerce landscape and risk losing business if these laws pass.
Related Read: 7 Reasons You Need an E-Commerce Liquor Store
Online sales allow you to increase your reach and tempt people into impulse buys without them having to leave the house. Avoid disappointing stockouts by integrating your website directly with your point of sale (POS) system. That way, inventory will always be accurate and up to date.
Build a user-friendly website that works well on both desktop and mobile for the best experience. Last, remember that your online presence is an extension of your in-store personality. So, write great product descriptions, change online promotions regularly, and make recommendations.
Platforms like YouTube and TikTok give people more confidence to tackle luxury cocktails at home.
While selling some soft drinks along with a few lemons and limes at the counter might have been good enough in the past, it’s no longer enough to impress many of today’s customers.
Customers are looking for unique and high-quality mixers like:
Not sure where to start? Use your POS system to see what types of staples are already selling well. Then, you can focus on choosing high-end mixers that complement your bestsellers. Features like Bottle POS’ auto-ranking are helpful to quickly get a breakdown of bestselling bottles and categories.
Related Read: 7 Creative Ways to Use Point of Sale Analytics to Grow Your Liquor Store
For many years, beer — from national staples to local craft breweries — dominated liquor sales. Now, beer and wine are slowly losing market share to spirits and other types of drinks. The economic shift is big enough to lead to a noticeable drop in barley demand.
What does this mean for liquor stores?
Spirits, hard seltzers, and ready-to-drink (RTD) cocktails may take up more shelf space. Since many RTD and hard-seltzer brands are on the newer side, it’s important to continuously track sales to understand which ones are popular with customers.
You can also use creative product bundles to capitalize on increased spirits sales. Use your POS system to make cocktail sets, complete with recipes — or provide discounts on bar equipment on sales of certain spirits.
The more you diversify your selection, the more chances you’ll have to connect with new customers.
Now that you understand the biggest liquor industry trends, what practical steps can you take to take advantage of them?
Your two most valuable tools are:
Not all trends will resonate with your customers. Sometimes, asking them directly is the easiest way to learn which new products excite them the most.
Survey customers in-store and on social media to gauge what items they’d like to see more of. Give customers a chance to win a coupon or a free bottle of wine by completing a short survey to boost participation.
Last, your POS system is constantly collecting a treasure trove of invaluable data that you can use to make smarter decisions. Use the inventory management functions on your POS system to get insights into:
For more insights on how to get the most out of your inventory management, read our free guide to liquor store inventory management. Or schedule a customized demo to see how specialized POS systems like Bottle POS are helping package stores boost profits and improve the customer experience.