More than half of the 500 retailers in Drizly’s annual retailer report said they will devote more shelf space to ready-to-drink beverages (RTDs) in 2022, according to the e-commerce alcohol delivery platform.
The annual BevAlc Insights by Drizly Retail Report – now in its third year – analyzes responses from retailers from independent liquor stores and supplements them with the platform’s own sales data.
About 300 of the retailers (60%) said they will prioritize RTDs more in 2022, while 11% said they will prioritize the burgeoning segment less, and 29% said they are unsure.
Craft beer was the second most popular segment among retailers, with 50% of respondents saying they will dedicate more shelf space to it. Only 8% of retailers said they will devote less space to craft, while more than a third (35%) said they were unsure.
Hard seltzer fell to third place, with 50% of respondents saying they will give the segment more shelf space. Hard seltzer had the most retailers out of the three segments who said they would devote less space to the segment (23%), while 27% said they were unsure.
With hard seltzer possibly plateauing or losing shelf space, what new products could have the most potential to grow? Retailers pointed to CBD and cannabis-infused products, and non-alcoholic (NA) beverages.
More than half of the retailers surveyed (51%) predicted CBD and cannabis-infused products will have the highest growth potential in 2022, despite the fact that cannabis is fully legal in only 18 states.
NA beverages ranked as second in growth potential, chosen by 26% of retailers. NA adult beverages have already had a large growth year in terms of visibility on the Drizly platform. Since 2020, share of NA products sold on Drizly have increased 120%, with 90% of Drizly retailers now carrying a NA beer, wine or other alternative.
Hard kombucha ranked third, with 10% of retailers predicting growth for the segment, followed by hard tea (7%) and hard coffee (6%).
The “better-for-you” trend of 2021 is expected to continue in 2022, according to Drizly. More than three quarters of retailers surveyed (76%) said they intentionally stock organic products, followed by gluten free (>60%) and low calories (~60%). More than half said they also stock low sugar and low carb products.
Locality remains important to drinkers, according to Drizly. Two thirds of respondents (66%) said they intentionally stock locally made products, followed by organic and natural products (60%). More than half of respondents told Drizly they intentionally stock celebrity-owned brands, followed by “health-conscious drinks” and NA products.
The largest concern for retailers entering the new year is product shortages and supply chain issues. More than half of respondents (54%) said those will be the No. 1 challenge in 2022, followed by product price increases (22%) and labor shortages (20%). The average unit price for products purchased through Drizly increased 6% year-over-year in 2021, according to Drizly purchase data.
However, retailers have an optimistic sales view as 2021 comes to a close. The majority of those surveyed (73%) said they expect holiday sales this year to meet or exceed last year’s sales. Only 12% said they expect lower sales than a typical holiday season, while 15% said they are unsure.