New research from CGA by NIQ with The Duppy Share reveals plenty of vibrancy and opportunities in spirits supply despite market challenges.
The exclusive survey provides in-depth insights into big sector trends across the sector in 2025. It is based on the views of 264 small to medium sized independent beverage brand owners, distributors, agencies, consultancies and other partners, who are all part of The Duppy Share’s Kindred Spirits network. Here are five of the top takeaways.
1 Growth for challenger brands
There are some encouraging signs of growth for independent businesses. Nearly three quarters (72%) of them achieved a year-on-year increase in volumes across their portfolios of brands and products in 2024, and nearly a third (30%) beat their sales forecasts ahead of the crucial Christmas trading period. Some market headwinds may be easing, with food and drink price inflation slowing and stability in distribution. Nevertheless, the On Premise backdrop remains challenging, and CGA by NIQ’s Hospitality Business Tracker has recorded below-inflation sales growth in early 2025. Leaders’ optimism remains hesitant amid various financial challenges.
2 Vibrancy among indies and online
The Kindred Spirits Survey highlights online sales and independent bars and pubs as leading sales drivers in the last quarter of 2024. Close to half (45%) of respondents reported year-on-year growth with internet sites like Amazon, and nearly as many (44%) saw growth with On Premise indies. These channels will be key targets for listings this year—especially for the 50% of businesses that do not yet use Amazon as a direct route to market. There are some concerns that adding new SKUs to Amazon may cannibalise sales elsewhere, but 41% think it improves overall brand performance and leads to incremental sales.
3 Marketing spend rising
In a competitive environment, many Kindred Spirits members recognise the need for more marketing spend in 2025. Two in five (39%) have a marketing budget of more than £100,000—a year-on-year increase of 8 percentage points. Brand ambassadors are central to strategies, and a fifth (19%) of businesses now have more than one of these—though 44% don’t yet employ any.
4 Opportunities in collabs and no-low
Brand collaborations are the top priority for independent businesses this year. More than half (52%) view these as the biggest opportunity for growth, putting them well ahead of social media virality (32%). Two thirds (66%) think non-alcoholic drinks will be a major growth area in 2025—which brings opportunities as well as challenges for businesses that can adapt portfolios to include no and low alternatives. Within spirits, tequila (46%), mezcal (32%) and liqueurs are the most hotly tipped for growth.
5 Value and sustainability to the fore in 2025
Cost of living pressures are easing for some people, but well over half (56%) of Kindred Spirits members think these will continue to have a major effect on the beverage industry in 2025. This makes it vital to deliver value for money without diminishing perceptions of quality—especially for those who continue to seek premium options. Another big issue for the year will be sustainability, and 70% think initiatives here are important to their brand competitiveness. The Extended Producer Responsibility scheme will be a big driver of sustainability, but there is some uncertainty: only half (51%) of respondents are aware of the scheme, and 28% of these aren’t sure if they are obliged to participate.
To learn more about The Duppy Share and to become a member of Kindred Spirits and access the report, email Jack Orr-Ewing.
To discuss CGA by NIQ’s research capabilities in sales trends, consumer engagement and industry opinion, plus opportunities for expert tailored analysis, contact the team.
