For the first time in our study, alcoholic beverages appear as a stand-alone industry. Alcohol enters the rankings in 20th place out of 22 industries, signaling both opportunity and vulnerability. Stella Artois leads the category, followed by High Noon and Absolut, three very different brands that underscore how fragmented this space has become. From European lagers to canned cocktails to iconic spirits, the category is wrestling with profound cultural shifts.
Alcohol has long been shorthand for connection: a beer after work, a toast at a wedding, a glass of wine with dinner. Yet, those rituals are no longer universal. Consumers are rewriting the once unchallenged role of alcohol in social life as they embrace health, wellness, and inclusivity. The rise of “sober-curious1” lifestyles questions whether alcohol can sustain the emotional intimacy it once enjoyed, or whether it will become another indulgence subject to moderation, replacement, or outright avoidance.
Indulgence, Innovation, and Inclusion
Indulgence is the most dominant archetype among alcoholic beverage brands, which centers on creating moments of pampering and gratification that can be either occasional or frequent. Grey Goose leads the industry here by embodying the luxury and gratification of premium vodka. This reflects alcohol’s enduring role as a product of pleasure, escape, and self-reward. Even in an age of restraint, the allure of a well-made martini, a rare whiskey, or a crisp lager still resonates deeply. In fact, this pursuit of indulgence increasingly aligns with a broader premiumization trend: As consumers drink less frequently, they often choose to spend more on higher-quality products, elevating the occasion into something more deliberate and memorable.2
Brands have also been quick to innovate to meet consumers’ preferences. The surge of ready-to-drink (RTD) products, from High Noon to White Claw, has blurred category boundaries. The RTD segment is booming, projected to reach $21.1 billion by 2027, with a compound annual growth rate of nearly 15 percent.3 Once, beer, wine, and spirits occupied distinct spaces; today, a canned vodka soda or spiked seltzer competes directly with legacy beer brands. RTDs deliver convenience, flavor variety, and a lighter, more playful positioning that appeals to younger audiences.4
Perhaps most notably, alcohol brands are leaning into the low- and no-alcohol movement.5 Heineken 0.0 and Guinness 0.0 exemplify how mainstream players are betting on moderation as a growth driver rather than a threat. These offerings acknowledge that drinking is no longer the default social ritual but a choice. By expanding the portfolio to include nonalcoholic options, brands signal inclusivity, enabling consumers to participate without stigma.
Transparency is another area of progress. “Clean drinking” has gone from niche to mainstream, with rising demand for organic wines, natural fermentation, and hard seltzers marketed with calorie counts and simple ingredient lists. The global organic wine market expects to triple in value by 2030, with millennials accounting for roughly 52 percent of organic product purchases.6 In an age of label scrutiny, clarity builds trust—even if it also highlights the inherent contradictions of alcohol’s health profile.
Younger Generations Rewrite What It Means to Raise a Glass
Despite these efforts, the industry faces sobering realities. The category posts an average Brand Intimacy Quotient (BIQ) of 19.3, well below the cross-industry average of 25.1. Alcohol brands struggle to cultivate the same level of emotional bonds seen in categories like technology, retail, or even nonalcoholic beverages.
The biggest challenge is cultural: Young generations simply drink less. The share of adults under 35 who reported drinking alcohol dropped 10 percentage points over two decades—from 72 percent in 2001–2003 to 62 percent in 2021–2023.7 Gen Z and millennials are not only cutting back on alcohol consumption but actively replacing it with alternatives: functional drinks, cannabis, CBD, or THC-infused beverages. Surveys show that one out of three millennial and Gen Z adults choose weed drinks over alcoholic beverages at after-work functions.8 What once served as a default marker of social connection is now competing with a wider set of lifestyle choices, forcing alcohol brands to rethink how they are to stay relevant in evolving rituals of leisure and celebration.
The health perception gap further complicates the picture. However, “clean” the label, alcohol cannot escape associations with addiction, impaired judgment, or long-term health consequences. Transparency may build credibility, but it also makes the risks harder to ignore. As wellness and inclusivity reshape social behavior, alcohol can feel like an option rather than an anchor. For a category built on ritual and indulgence, this is an existential threat.
Redefining Intimacy for a New Era
On the one hand, the alcoholic beverages industry retains immense cultural capital, anchored in indulgence, pleasure, and centuries-old rituals. On the other hand, shifting generational values, health awareness, and regulatory scrutiny confront it.
The brands that will thrive are those that reframe their role. Rather than clinging to outdated notions of excess or rebellion, they must embrace moderation, inclusivity, and cultural relevance. This may involve positioning products as lifestyle accessories tied to music, fashion, or community. Others will lean on craftsmanship and scarcity, elevating indulgence into an art form. Still others are experimenting with hybrid innovation: alcohol-adjacent offerings that balance pleasure with wellness. What’s clear is that intimacy in this category cannot be assumed. Brands must earn, redefine, and sustain it in new ways.
From Default to Deliberate
Alcoholic beverages enter our study as a new and revealing category. The winners so far show that no single formula guarantees intimacy: Heritage, innovation, and iconography can each play a role.
Yet, the broader picture is cautionary. Consumption patterns are shifting, health consciousness is rising, and cultural rituals are evolving. Consumers are asking alcohol brands to justify their social place in ways they never had to before.
The future of intimacy in this industry will not hinge on taste or tradition alone; it will depend on whether alcohol can transform from a default habit into a deliberate, meaningful choice—one that reflects not just what people drink, but who they are and how they want to connect.
Get an overview of Brand Intimacy here.
Read our detailed methodology here. Our Amazon best-selling book is available at all your favorite booksellers. To learn more about how we help clients enhance their consumer bonds, visit mblm.com/services.
Sources
1Alcohol and Drug Foundation. (2023, August 15). What does it mean to be sober curious? https://adf.org.au/insights/sober-curious/
2Auguste Escoffier School of Culinary Arts. (2024, March 22). Alcohol and beverage trends. Escoffier Blog. https://www.escoffier.edu/blog/world-food-drink/alcohol-and-beverage-trends/
3Ranch2O Spirits. (2024, April 18). How RTD cocktails are boosting on-premise profit margins. https://ranch2ospirits.com/rtd-cocktails-are-boosting-profit-margins/#:~:text=The%20RTD%20Market%20Surge,consumers%20prefer%20to%20enjoy%20cocktails
4TBevSource. (2024, May 9). The RTD beverage boom is still going strong. https://www.bevsource.com/news/rtd-beverage-boom-still-going-strong
5The On-Trade. (2024, June 5). The rise of low- &no-alcohol beverages in on-premise settings. News. https://theontrade.com/en/blog/news-43/media-44/the-rise-of-low-no-alcohol-beverages-in-on-premise-settings-246.htm
6Tastewise. (2024, June 12). Organic wine trends: What’s next for natural drinking. Tastewise Blog. https://tastewise.io/blog/organic-wine-trends
7Gajanan, M. (2024, July 10). Why Gen Z is drinking less alcohol. Time. https://time.com/7203140/gen-z-drinking-less-alcohol/
8Jaeger, K. (2024, September 3). More young adults are opting for cannabis drinks over alcohol at after-work happy hours, poll shows. Marijuana Moment. https://www.marijuanamoment.net/more-young-adults-are-opting-for-cannabis-drinks-over-alcohol-at-after-work-happy-hours-poll-shows/