Austin, TX (Jan. 10, 2024) – With 2024 in full swing, Union has analyzed its data from more than a thousand bars and restaurants nationwide to provide key on-premise trends that will likely play out in the year ahead. The six major predictions are outlined in a recent report and summarized below:
- Premiumization to Continue – inflation has certainly impacted drink prices over the last year and the increase has been most notable in the cocktail category. Despite reports that premiumization is slowing, Union’s data from the past year showed that guests are not shying away from top-shelf products. The share of drinks selling for $15 or more has almost doubled at Union venues over the last two years. In the year ahead, Union predicts that guests will continue to opt for more expensive, premium drinks despite the bump in price.
- The Year Tequila Surpasses Vodka – based on ordering data at Union venues, agave-based spirits will close in on vodka when it comes to sales share of spirits sold on-premise. Tequila/mezcal drinkers drank 13% less vodka and 14% less whiskey in the 12 month period ending in October 2023. Mezcal also saw a 20% growth during the same time period, making it agave’s fastest growing subcategory. Furthermore, margaritas are the number one best selling cocktail at Union venues, further cementing tequila’s continued rise on-premise.
- Espresso Martinis to Outsell the Old Fashioned – the espresso martini is Union’s second fastest-growing cocktail and third best-selling cocktail overall. With its 53% growth rate, the trendy coffee cocktail is poised to overtake the old fashioned in on-premise sales this year.
- Vodka-Based RTDs Drive Category Growth – the shift to spirit-based RTDs will be all the rage in 2024. RTD hard seltzers lost share on-premise over the last year, as High Noon replaced malt-based White Claw at Union venues last year. But watch out High Noon, Nütrl, a growing vodka-based RTD, is coming in hot in 2024 as the third best selling RTD on-premise.
- The Non-Alcoholic Spirits Boom – non-Alcoholic Spirit sales have traditionally been eclipsed by non-alcoholic beer sales, but that’s about to change in 2024. While non-alcoholic beverages account for a small market share on-premise at Union venues (less than 1%), sales have grown by about 50% year-over-year. In the non-alcoholic spirits category, the CleanCo brand dominates Union venues with its Clean T (Tequila), CleanCo V (Vodka), CleanCo G (Gin), and CleanCo R (Rum) options.
- All Eyes on Imported Beer – imported beer was a bright spot last year—up about 6 percent in share growth—in a category that has been struggling. In 2024, Union predicts Mexican and Irish beer will continue to shine on-premise. Furthermore, Modelo is expected to stay on its upward growth trajectory.
“We analyze our on-premise data throughout the year and we’re excited to see how these predictions play out,” stated Layne Cox, Union’s chief marketing officer. “While some global metrics are showing a deceleration of spirits premiumization, our ordering data shows consistent growth for premium prices drinks, which we expect to continue. With millennials and Gen Z driving the demand for alternatives to alcoholic beverages, it will be interesting to watch the ordering data over the next year around non-alcoholic drinks on-premise, specifically spirits-based brands.”
To read the full 2024 trends report, visit https://getunion.com/onprem-insights/onprem-insights-predicts-2024-drinks-trends/. For more information on Union, visit www.getunion.com. To learn more about OnPrem Insights by Union, visit https://getunion.com/onprem-insights/.
About OnPrem Insights by Union
Union’s OnPrem Insights is a rich data source that provides the hospitality industry with a granular, precise view of on-premise consumer consumption behavior. The reports cover beverage industry trends and uncover consumer purchasing patterns, which allow busy bars and restaurants as well as beverage and alcohol brands to better understand their consumers, the marketplace and identify growth opportunities. The reports are based on Union’s proprietary GuestMatch and MenuMatch intelligence and on-premise consumption data over a thousand of Union venues, serving millions of guests 21+ across 34 U.S. states. Union data is based on actual customer orders, not indirect methods like cases sold into the bars or surveys. To learn more or to download Union OnPrem Insights reports, visit https://getunion.com/onprem-insights/.
About Union
Union is a hospitality engagement platform leveraging industrial-grade data intelligence to deliver transformative experiences for guests, operators, and brands at the most popular venues across the country. Designed by over 50 hospitality venue owners from some of the highest volume locations in the country, the Union engagement platform was built specifically to meet the needs of high-volume bars and restaurants, while taking a revolutionary approach to connecting consumers and brands on-premise. Follow Union on Facebook and Instagram or visit getUnion.com.
