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Satisfying consumers’ thirst for innovative alcoholic beverages at home 

December 22, 2024 by Cath Isabedra

alcoholic beverages at home

Courtesy of ADM

Contributed by Sarah Lim, APEC Marketing Director, Beverages, ADM 

The pandemic marked a turning point for at-home bar experiences, sparking a surge in creativity as homebound consumers embraced do-it-yourself (DIY) mixology to liven their lockdowns.  

With more time to experiment, consumers pushed the boundaries of traditional cocktails, blending flavours and ingredients in unexpected ways. This shift has set the stage for significant growth in the alcoholic beverage market in the Asia-Pacific (APAC) region, which is projected to achieve a compound annual growth rate (CAGR) of 5.33 per cent over the next five years.  

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The rise of blended spirits 

One of the most exciting developments in the region’s alcoholic beverage market is the rise of blended spirits. By combining different types of spirits and ingredients, such as gin infused with an assortment of botanicals, brands are revitalizing the segment and creating unique drinking experiences. Today’s botanicals extend beyond commonly used options like juniper berries, introducing more aromatic and flavourful elements, including fruits, nuts, seeds, flowers, roots, barks, herbs, and spices. 

Additionally, the convenience and affordability of at-home mixology have encouraged consumers to explore new flavours and concepts, driving demand for products that go beyond traditional alcoholic drinks. As a result, blended spirits are becoming a staple in the market, with brands racing to develop creative combinations that cater to this growing trend. 

According to ADM’s Beverage Innovation Report, herbal, botanical, and bitter flavours – like cherry blossom, coriander, and sage – are capturing attention for their fresh, natural appeal. In the APAC region, citrus ingredients like grapefruit, blood orange, and kumquat have also become new favourites, transforming into mainstream staples for consumers seeking vibrant profiles.   

What is particularly interesting is that consumers are increasingly drawn to unconventional pairings that blend the familiar with the exotic. Flavours like vanilla and mint, which are well-known and widely accepted, are being paired with less familiar ingredients to create more sophisticated flavour profiles. This approach not only broadens consumers’ palates but also encourages them to try new options.  

In fact, 42 per cent of global consumers are more likely to experiment with new flavours when they are paired with familiar tastes in alcoholic beverages. Such insights are invaluable for brands looking to innovate within the segment, as they highlight the importance of balancing novelty with familiarity.  

Consumers’ desire for experimentation is also evident in the beer category, where a shift towards creative flavour profiles is gaining momentum.   

Catering to Millennials and Gen Z with flavour-driven beer innovation 

Demand for flavoured and mixed lagers in Southeast Asia is expected to grow by 13 per cent by 2027, propelled by growing interest in Indonesia and the Philippines, according to Euromonitor.  

Millennials are drawn to beer for their at-home drinking experiences, with 39 per cent reporting that it fits their lifestyle. This presents considerable potential for innovation and growth in the segment.  

Additionally, more flavourful, higher alcohol by volume (ABV)* beers offer an opportunity to attract new consumers, especially cocktail and fruity beer enthusiasts, who feel they are getting “more bang for their buck.” 

At the same time, ADM’s Beverage Innovation Report revealed that Millennials are attracted to claims such as “natural flavours” (69%) and “contains real fruit juice” (66%), reflecting their desire to balance enjoyment with well-being. Both Millennials and Gen Z consumers, the latter of whom will play an ever more significant role in the alcoholic beverage landscape as they reach legal drinking age, find tropical, exotic, berry, and citrus flavour profiles particularly appealing, underscoring the growing demand for refreshing beer offerings.   

At ADM, we take pride in our wide variety of citrus solutions built from our unmatched portfolio of citrus flavouring ingredients. They are designed to the needs of different categories, including beer-mix drinks and flavoured beers, enabling brands to deliver unique citrus profiles that make their products stand out.  

Navigating flavour depth and wellness in RTDs 

While much of this innovation is fuelled by consumers’ exploration of flavours, we are also seeing an increased sophistication in taste within the ready-to-drink (RTD) alcoholic beverage segment. According to Euromonitor, the RTD market in APAC is expanding at a CAGR of 7.9 per cent, positioning the region as a significant player. This momentum is driven by changing lifestyles and rising disposable incomes across developing countries.  

When it comes to flavour preferences, spicy, botanical, and fresh fruit flavours are leading the charts, while both new and classic cocktail profiles – such as Margarita, Mojito, and Pina Colada – continue to captivate consumers. Some consumers are also seeking a stronger buzz without drinking as much. In fact, about half of millennials and Gen Z consumers find drinks with 8 per cent to 12 per cent ABV appealing.  

Conversely, a notable proportion of these consumers are reducing their alcohol intake to pursue a healthier lifestyle. This shift not only aligns with the growing demand for low-ABV RTD options but also opens new avenues for brands to cater to a broader audience seeking both flavour and wellness in their alcoholic beverage choices.  

Unlocking what’s next in alcoholic beverages  

The fast-paced world of alcohol thrives on constant inspiration, driven by evolving consumer preferences and lifestyle choices. 

As brands navigate this dynamic landscape, integrating familiar flavours with exotic ingredients emerges as a key strategy for staying ahead. This approach resonates with adventurous consumers who are seeking new tastes, sensations, and experiences while drawing on well-loved and sophisticated flavours for mainstream appeal. 

Our team of experienced flavourists, brewers, and mixologists is always in tune with the latest trends in the alcohol space, specialising in innovative, regional flavours and applications built on consumer insights and deep market knowledge.  

Beyond our robust pantry of ingredients and solutions, we partner closely with beverage manufacturers from concept to commercialization, ensuring they can effectively meet shifting consumer demands and lead the way in innovation. 

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