Those increases are far below the increases seen with carbonated soft drinks, which rose 10% over the same period, and energy drinks, which rose 8.3%. The price of RTD cocktails rose 4.7% over the past two years, beer rose 1.9%, wine rose just 1.1% while the price of spirits decreased 0.6%. One reason could be that, during a period of significant inflation, the alcohol industry seems to have largely avoided runaway price increases. However, IRI’s research suggests at-home drinking has retained it’s appeal for consumers.

The COVID-19 pandemic forced a dramatic shift in consumer behavior on many fronts, including the avoidance of bars in favor of having a cocktail at home. For the most part, it’s still not clear which changes will endure, in part because of a sense of uncertainty driven by new variants, even as there’s a broad push towards a return to pre-pandemic normalcy. Other factors driving consumption trends consumers indulging in premium alcohol and a desire for “better-for-you” alcohol drinks as they look to create entertaining experiences at home. In an example of a change in behavior driven by the pandemic with an enduring impact, canned cocktails, which rose in popularity during quarantine, continue to drive industry growth despite the reopening of bars and restaurants, per IRI’s research.

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