Alcohol has long been part of Australia’s social and cultural fabric, but today’s consumers are taking a more intentional approach. Rather than simply drinking less, many are becoming more deliberate about the role they want each drink to play, choosing beverages that best suit the moment and the experience they want to create. ADM’s APAC Beverages marketing director, Sarah Lim, writes.
Great taste remains essential, but consumers are also looking for beverages that cater to different occasions, reflect their lifestyles and deliver a more meaningful drinking experience. Whether celebrating with friends, enjoying a cocktail at a favourite bar or relaxing at home after work, they expect different flavour profiles, formats and drinking experiences to suit each setting.
For beverage manufacturers, this means rethinking what makes a product stand out. Success will increasingly depend on how well they understand the occasions consumers are drinking for and how effectively they design products that deliver the experiences consumers expect.
Making every drink count
Australians are drinking across a wider range of occasions than ever before. Celebrations and social occasions remain the strongest drivers of alcohol consumption, with ADM’s 2025 Outside Voice, AU BarXplorer Study finding more than nine in ten Australians drinking during celebrations or when socialising at bars and pubs. At the same time, alcohol is also part of everyday moments, from entertaining at home and sharing meals to simply unwinding after work.
This diversification of drinking occasions is driving more varied consumer behaviours. On one end of the spectrum, many Australians are moderating their alcohol consumption by drinking less frequently or opting for beverages with lower alcohol content.
On the other, Gen Z and Millennial consumers are increasingly embracing higher-ABV ready-to-drink (RTD) beverages, particularly for occasions such as pre-loading, or consuming alcohol before going to a social event or venue where further drinking may take place. Research by Innova Market Insights (IMI) found 81 per cent of Gen Z consumers pre-loaded before a night out. In these moments, convenience and appeal of fewer but stronger drinks influence purchasing decisions.
While these behaviours may appear contradictory, they reflect the same underlying shift. Consumers are becoming more selective, not less engaged with alcohol. The same person may choose a lower-alcohol beverage after work during the week, a premium cocktail on the weekend or a higher-ABV RTD before a concert, depending on the occasion. Rather than following a single drinking pattern, Australians are tailoring their beverage choices to suit different moments and the experiences they want those moments to create.
Redefining premium
This more considered approach to drinking is also reshaping expectations of what premium means in the beverage category. Today, IMI says consumers expect premium beverages to deliver clear value that justifies the expense, while also offering more indulgent taste experiences.
Premium is now judged as much by the overall experience as by what is in the bottle. While quality ingredients and craftsmanship remain important, consumers increasingly expect beverages that complement the occasion they were chosen for. Flavour, aroma, mouthfeel, and presentation all help shape that experience.
Australia’s evolving cocktail culture offers a clear illustration of this shift. From carefully layered flavours and tableside theatre to unexpected ingredient combinations and modern techniques, cocktails have become multi-sensory experiences that encourage consumers to slow down, engage their senses and savour the moment.
Importantly, this does not mean consumers are abandoning familiar drinks. Instead, they are seeking familiar favourites presented in new ways. Bartenders continue to report strong demand for classics such as the Espresso Martini, Negroni and Spicy Margarita, but these are increasingly being reimagined through new ingredients, flavour pairings and presentation.
The same preference is shaping flavour innovation.
Citrus varietals and florals are emerging, driven by the influence of Asian beverages and tea culture, adding a layer of complexity and sophistication to beverages. At the same time, berries continue to resonate with consumers by evoking nostalgia and perceptions of natural purity, while emerging dark berry flavours such as blackberry and black raspberry deliver bold depth and a sense of premium indulgence. Together, these flavour profiles bring a fresh dimension to familiar flavour profiles, allowing classic beverages to evolve without losing their broad appeal.
Innovation begins with understanding the occasion
Responding to these changing expectations starts with understanding the moments consumers are drinking for and the role beverages play within them. The challenge is then to translate those insights into products that deliver the right balance of taste, functionality and sensory appeal for each occasion.
Ingredient innovation and formulation expertise remains essential, enabling manufacturers to recreate the experiences consumers increasingly expect.
The same principles apply to alcohol-free beverages. Consumers choosing an alcohol-free beer after work aren't simply looking for a product without alcohol. They still expect the same ritual, mouthfeel and sense of satisfaction associated with traditional beer.
Delivering those sensory qualities without alcohol, however, requires more than simply removing alcohol from the formulation. It calls for ingredient solutions that can restore flavour, body and mouthfeel while maintaining an enjoyable drinking experience.
Advances in formulation and flavour technologies are helping manufacturers meet this challenge. At ADM, we’ve seen growing interest in ingredient and flavour solutions that help deliver fuller flavour, improved mouthfeel and a more authentic sensory experience in low- and no-alcohol beverages. For example, hop-based ingredient solutions can enhance flavour and body in non-alcoholic beer, while technologies such as ADM’s TasteSpark Sensorial solutions help recreate the warming character of spirits and address common formulation challenges such as masking off-notes.
Looking Ahead
As Australian consumers continue to redefine what makes an alcoholic beverage worth choosing, manufactures must evolve alongside them.
The next wave of beverage innovation will be shaped not simply by new flavours or formats, but by a deeper understanding of why consumers choose one drink over another across different occasions.
For manufacturers, capitalising on these opportunities will require partners that can combine consumer insight with flavour innovation and application expertise to translate evolving consumer preferences into commercially successful products.
Those that start with the occasion and design flavours and sensory experiences around it will be best placed to create beverages that consumers continue to choose, whatever the occasion.
