With social gatherings ramping up as we approach the holiday season, hosts are looking for the beverages that will keep their guests in good spirits. Thankfully, today’s beverage manufacturers are actively researching and developing the products, flavors and more that will drive the next generation of beverage alcohol.

In a video interview with Beverage Industry, Justin Solomon, category marketing director of alcoholic beverages at ADM, Chicago, discussed what’s driving innovation in beverage alcohol not only in terms of the products but how consumers are approaching alcohol consumption.

In our discussion, Solomon highlights that following the pandemic consumers got used to eating and drinking at home and that has continued. Yet when asked what they are drinking, Solomon highlights that beer remains popular with consumers, particularly millennials and Generation Z with 47% and 32%, respectively, reporting they enjoy drinking beer at home.

Solomon acknowledges that beer consumption has been on the decline the past five years, but still remains a popular at-home consumption choice.

In our video discussion, Solomon offers additional insights on the other beverage alcohol categories ― wine, ready-to-drink and spirits ― in terms of at-home consumption trends.

Although the focus of our discussion was on beverage alcohol, we couldn’t overlook the impact that non-alcohol versions are having on the market.

“So among legal drinking age Gen Z, we’ve seen 54% of U.S. consumers and 44% of Canadians state that they have not consumed alcohol in the last six months,” Solomon says in the video. “So clearly that’s a very large portion of this newest drinking age consumer. And so that’s a big area that we need to be aware of. Gen Z in general is very concerned about their long-term wellness.”

In our discussion, Solomon spotlights the beverage alcohol categories in which consumers are opting for non-alcohol versions.

Later in the video, Solomon discusses where higher ABV versions fit into the future of beverage alcohol as well the flavors we might see in future new releases.