IWSR has identified six major trends shaping the future of drinks in the months and years ahead, led by growth opportunities linked to innovation and the increasingly influential Gen Z age cohort.

These key drivers are outlined in the IWSR e-book Beverage Alcohol Drivers 2026: Six key drivers shaping beverage alcohol in 2026 and beyond.

They include: 

• Gen Z behaviour evolution

According to IWSR Bevtrac consumer research conducted in September 2025, Gen Z’s participation in alcohol is stable compared to the previous year and higher than in September 2023. However, these consumers are becoming more selective, with the average number of categories consumed per occasion down from 2.8 to 1.8 over the past two years.

Gen Z will also be vital to the future revival of the on-trade: this age group is highly engaged with the channel, and more likely to visit it across Europe, North America, Australia, South Africa and Japan.

• Reshaped premiumisation

While consumers are not rejecting premium experiences, IWSR has found they are becoming more and more selective about when and where they trade up, looking for clear value and justification when they make purchasing decisions.

According to Bevtrac research, alcohol budgets shrank in many markets in the first half of 2025 – even among the high earners who are traditionally thought to be insulated from affordability concerns. Financial confidence is rising in many markets, but there is a disconnect between this and actual spend on alcohol.

• Developing market growth

As growth stalls in a number of beverage alcohol’s mature markets, developing economies are poised to become the primary drivers of global expansion.

• Changing travel retail priorities

Increased global travel retail space is being devoted to emerging categories such as agave spirits and bitters, at the expense of whisky – where Scotch’s traditional dominance is being challenged by dynamism in American, Irish and Japanese whisky.

• RTDs a key growth driver

According to IWSR’s RTDs Strategic Study, RTDs are outpacing total beverage alcohol growth in eight out of the top 10 markets; growth has slowed recently, but the category is poised to continue to gain market share, especially in destinations where RTDs are well established, with a TBA volume share of more than 5%.

• Innovation’s increasing importance

According to IWSR data, innovation in all its forms delivered 55% of the US$231 billion total beverage alcohol value added over the past decade.

However, brand owners need to innovate judiciously, focusing on new products that deliver incremental growth, rather than cannibalising existing value pools. In a fast-moving market, they should also carefully examine emerging trends or flavours to pinpoint which will have true staying power.

Learn more and read the e-book here.