Here we are a month into 2025. Any New Year trends have made their impact, with last year’s predictions humbly slinking away or making headlines. One thing we know for sure: Americans are drinking less.
According to NIQ, as reported by USA Today, in 2024, alcohol sales fell for the first time in three years. Gallup also reported declining percentages, with 58% of Americans reporting they drink alcoholic beverages in 2024, a figure representing a 9% decline from 2022. On the other hand, non- and low-alcoholic drink sales are on the rise, increasing by 27%.
So, what do you do as a full-service restaurant whose alcohol sales represent over 20% of your total sales? With higher profit margins, it’s an essential element in a restaurant’s staying power.
The answer? In moments like these, you make sure you’re offering what your guests want. Here, we’ll explore the brands and beverages that are in high demand and the restaurants and bars answering the call.
Tequila & Mezcal
In 2023, Tequila surpassed American whiskey, becoming the second most valuable spirit category. In 2024, vodka remained the most valuable, with $7.2 billion in sales. Tequila and mezcal increased by another 2.9%, reaching $6.7 billion. American whiskey decreased by 1.8% to $5.2 billion.
Guests are looking for additive-free, artisanal options and premium sipping tequilas. Expertly hand-crafted mezcals are also on the upswing, appealing to those looking for the smokier flavor that comes from roasting the piña or heart of the agave.
Industry-Leading Brands
Premium brands with authentic storylines draw the younger crowds. However, drinks in the “mid-range” are growing in demand as consumers balance their desire for premium spirits and budget constraints.
Other brands taking the lead emphasize their eco-friendly, sustainable practices, from sourcing to packaging. Distillers authentically communicating these values are shifting consumers, creating brand-loyal patrons.
Some of the popular high-quality, artisanal spirits that tell a brand story include:
- Tito’s Handmade Vodka: This vodka dominates the U.S. market, with sales up over 800% in the last decade.
- Patrón: Leading the premium tequila market due to its authenticity.
- Casamigos: George Clooney and two friends founded this luxury tequila brand in 2013. In 2017, Diageo purchased it. In 2022, it became one of the fastest-growing brands.
- Jack Daniel’s: This iconic Tennessee whiskey isn’t going anywhere, still laying claim to one of the world’s most popular whiskey brands.
- Bulleit: This award-winning Kentucky whiskey is known for its high rye content that gives it a bold and spicy flavor.
Mixed Cocktails
Southern Glazer’s Wine & Spirits 2024 Liquid Insights Tour explored the top trends in the industry. According to Brian Masilionis, Sr. Director, Commercial Development for Southern Glazer’s, their coast-to-coast tour “…Uncovered an exciting shift in consumer preferences, with bartenders and mixologists embracing new ingredients, techniques, and presentation styles. These trends are not only elevating the guest experience but also providing fresh opportunities for creativity behind the bar.”
Some highlights include bold, botanical spirits adding herbal accents to cocktails. The martini revival continues, reinventing the classic cocktail with new twists. One example is the lychee martini, an Asian fruit that offers an exotic touch.
While simple, elegant presentations are gaining traction, Masilionis noted that many venues offered at least one over-the-top maximalist drink, providing a theatrical flair. Another interesting trend is “Tiny Tipples.” These cocktails and wines are offered in smaller portions, enabling guests to try more options and enhance their overall experience. They also maximize profitability.
Non-Alcoholic Beer & Mocktails
A survey conducted by NCSolutions revealed that almost 50% of Americans intend to drink less in 2025, and 58% plan on trying a non-alcoholic drink. This is particularly true of the younger generations, with 65% of Gen Z leaning toward drinking less in 2025.
For this reason, it’s essential to offer non-alcoholic beverages and mocktails. Of all the non- or low-alcohol beverage options, non-alcoholic beer is still the mainstay, accounting for much of the non-alcoholic spending. However, in 2025, 28% of survey respondents plan on ordering a mocktail. Consumers are also asking for wines with reduced alcohol. Today, more vintners are delivering, producing wines with 33% less alcohol.
Also, keep in mind that 28% of Gen Z and millennials tried a drink because an influencer or celebrity endorsed it, and 35% discovered these beverages through social media. One of the non-alcoholic beverages that hit the market with significant fanfare is BERO. Created by Tom Holland, this non-alcoholic beer is defined as the gold standard.
A High-Quality Beverage Program
Restaurant Business quoted Katherine Wojcik, the director of beverage programs at IHG Hotels & Resorts, “It’s not enough to just be alcohol-free anymore. The expectation is to deliver on the same level of ingredients, innovation, and flavor as any classic cocktail.” These beverages are often priced comparably to their alcoholic counterparts.
And for those who keep their ear peeled to the online world, Better Homes & Gardens reported that Google searches for “banana cocktails” rose by 33% from November to December 2024. Scoundrel, a restaurant in South Carolina, is serving La Concorde, a blend of banana liqueur, rye whiskey, expresso rum, and crème de banana. Does anyone care for a banana martini?
