The luxury drinks market has entered a period of recalibration. Over the past few months premiumisation has not disappeared — but it has evolved. Growth is no longer driven purely by higher price points or aged statements. Instead, luxury drinks brands are refining their retail strategies, rethinking how to recruit new drinkers, and investing in experiential value that justifies premium positioning in a more cautious consumer climate.

Premium, but Purposeful

In 2025, the luxury category across spirits, champagne, fine wine and craft non-alcoholic alternatives saw strong momentum, fuelled by post-pandemic celebration culture and affluent consumer resilience. Moving into 2026, the market has become more selective. Consumers still trade up — but they expect more in return.

Craft credentials, provenance storytelling, limited editions and sustainable production have shifted from “nice-to-have” to baseline expectations. High-end tequila, prestige cuvée Champagne, aged Japanese whisky and ultra-premium no/low alcohol alternatives have continued to perform — but only where brands deliver authenticity and clear differentiation.

The key shift? Luxury is now as much about meaning as it is about margin.

Retail Strategy: Experience Drives Conversion

Luxury drinks brands have increasingly recognised that retail strategy must extend beyond shelf presence. Physical retail, travel retail and direct-to-consumer platforms are being redesigned around immersive experiences.

Flagship boutiques, tasting lounges and curated pop-ups have become central to brand-building. Meanwhile, Ecommerce strategies have moved toward premium UX design, personalisation, and curated bundles rather than transactional listings.

One area gaining particular traction is gifting integration. Premium drinks are inherently giftable — but brands have historically under-leveraged this opportunity within their retail ecosystems. As consumer occasions diversify (corporate gifting, milestone celebrations, curated and bespoke gift sets), enabling seamless gifting at point-of-sale has become a competitive advantage.

This is where partners like Kudos are increasingly relevant. By embedding premium gift-wrap, personalised messaging and fulfilment solutions directly into retail strategy, luxury drinks brands can elevate basket value while aligning with consumer expectations for convenience and presentation. Wherever retail strategy intersects with occasion-led purchasing, integrated gifting becomes a growth lever rather than an afterthought.

Recruiting the Next Generation of Drinkers

Perhaps the most pressing issue for the industry between 2025 and now has been recruitment. Traditional luxury consumers remain important, but long-term category health depends on engaging younger legal-age drinkers — particularly Gen Z and younger millennials.

This demographic drinks differently. They prioritise moderation, wellness and social currency. They are less brand-loyal, more values-driven, and more digitally influenced. Luxury brands have responded by:

• Introducing lower-ABV and premium non-alcoholic extensions

• Leveraging cultural collaborations (fashion, art, music)

• Designing visually distinctive, social-first packaging

• Hosting curated events that emphasise community over consumption

The objective is not simply to sell a bottle, but to create entry points into the brand universe.

Importantly, gifting also plays a role in recruitment. Younger consumers are more likely to trial premium drinks through shared experiences or as gifts rather than direct personal purchase. Integrating elevated gifting solutions within retail strategy therefore supports both premium positioning and new drinker acquisition.

The Luxury Outlook

While macroeconomic pressures have tempered exuberant growth forecasts, the luxury drinks market remains structurally strong. The winners from 2025 to 2026 are those that recognise three truths:

1. Premium must be justified through story and substance.

2. Retail strategy must be experiential, digital-savvy and gifting-enabled.

3. Recruiting new drinkers is not optional — it is essential for long-term resilience.

Luxury in drinks is no longer just about exclusivity. It is about accessibility at the right moments, relevance to evolving lifestyles, and creating reasons for consumers — new and established alike — to step into the category.

The luxury drinks market is evolving quickly — and the brands that win will be those that translate insight into action. From retail theatre and gifting integration to recruiting the next generation of premium drinkers, packaging now sits at the centre of commercial strategy. If you’re reviewing how your brand shows up on shelf, online, or at key gifting moments, now is the time to rethink what’s possible. Let’s set up a Packaging Innovation Meeting focused specifically on the needs of your drinks brand — your category pressures, your retail ambitions, and your growth targets. Together, we can explore practical, commercially driven solutions that elevate presentation, enable gifting, and strengthen your position in an increasingly competitive luxury landscape.  Simply send us a message from our Contact us page asking for a Packaging Innovation meeting.