What is the lipstick economy and how is it shaping the US cocktail scene? Consumer Intel

Oversized martinis, mini daiquiris and bourbon-spiked margarita mash-ups are setting the tone for a new era of cocktail culture across the US.

It’s a fun time to be in the mixology business in the US. Today’s drinks trends blend old-school classics with creative, flavour-forward variations, offering guests options that are both comfortingly familiar and refreshing.

As consumers scale back on their spending and consumption, beverage pros across the industry report a shift to affordable luxury – higher quality, selective choices and experiences that still feel like a treat.

Cocktail habits get a reset

Whether driven by nostalgia or budget, customers are shifting their habits when going out. Heaven Hill Brands’ global director of advocacy, Elayne Duff, says: “What I’m seeing is a convergence of two forces: the return of happy hour and a renewed focus on classic cocktails, executed with intention.

“Happy hour has become strategic again. Operators can’t rely on the late-night rush the way they once did. Five o’clock is prime time. Guests are more value-conscious and they’re choosing where to go based on what feels worth it. A well-priced martini paired with fries or a cocktail and small bite bundle is driving real traffic.

“At the same time,” she adds, “we’re seeing a strong gravitation back to classics – the martini, the old fashioned, the negroni – drinks that people recognise and trust. For brands, this matters. When a guest orders an old fashioned or a negroni, they’re not just choosing a flavour profile. They’re choosing credibility.

“The foundation of these cocktails is built on brands with a point of view and production story behind them,” Duff says. “That trust allows operators to command premium pricing while still delivering perceived value.”

It’s a lipstick economy… and everyone’s wearing Chanel

We’re currently living through what can best be described as a ‘lipstick economy’. Since the Great Depression, it has been documented that in times of economic stress, we instinctively seek out small, affordable indulgences as a means of comfort. From Chanel to Estée Lauder, sales of luxury brand lipsticks in particular often rise significantly during these periods. Consumers will hold off on a new car, but happily drop US$50 on swanky cosmetics.

This trend extends to other affordable treats as well, such as an ultra-premium cocktail.

Row 34, a New England seafood restaurant & oyster bar with five locations throughout Massachusetts and New Hampshire, is tapping into this trend. “We have a section of cocktails called ‘Treat Yo Self’ [a nod to Donna and Tom from Parks and Recreation], which are made with finer spirits if someone wants to do exactly that: treat themselves,” says beverage director Vannaluck Hongthong.

“Although value is always top of mind, it’s important to have options for guests to celebrate however they wish to. Reaching for that ultra-premium tequila or whisk(e)y, some higher-end wines, etc. It’s impossible to have everything for everyone, but we do our best to get close.”

Including a complimentary treat with the elite cocktail has real allure. “We are absolutely in a moment of affordable indulgence,” notes Heaven Hills’ Duff. “Living in New York, I hear more people talking about the best happy hour they’ve discovered than the latest tasting menu. ‘They have $12 martinis and fries.’ ‘This place does a cocktail and small bite for $15.’ That’s the buzz.

“Guests are comparing perks. They’re choosing where to go based on what feels like a little treat that doesn’t feel irresponsible. Bars that package that small luxury into a set price are driving traffic. It’s aspirational but accessible. In many ways, it’s a very American version of aperitivo culture. Structured, social and designed.”

Martini madness

While the gin or vodka martini never actually went away, the ‘OG’ has certainly taken a back seat to other trendy cocktails for the past decade-plus (hello, margarita and espresso martini). Today, the pair are back in a big (or small) way with plenty of variation: oversized, inverted, extra dirty, with a twist or a dash of onion brine… So what are consumers choosing?

“All of the above!” responds Ryan Lotz, beverage director for Traveler Street Hospitality’s family of bars & restaurants across greater Boston, Massachusetts. “Maybe with the exception of the inverted. I’d love to see folks starting to get more excited about a heavy vermouth pour, but we’re not seeing that trend just yet.

“Martinis with a sidecar of more martini are still popular; of course, the dirty, and the espresso trend can’t be stopped. The tomato martini seems to be the newest trend this year. Everyone seemingly is working on a variation of this. And the freezer martini!”

Duff agrees: “Martinis are absolutely having a moment. What’s interesting right now isn’t just gin versus vodka. It’s the ritual; Tableside service, multiple garnish options, a side of vermouth or olive brine, so the guest can adjust. When you allow guests to build their own martini moment, you justify the price. A US$25 martini feels different when it’s interactive and thoughtful.”

At Row 34, martinis are a core and longstanding menu staple. Hongthong notes: “Vodka is still very much paying the bills, as they say. For martinis, it’s bone-dry first, followed by a dirty. Espresso martinis come in a close third.

“I’m always surprised at how much vodka is consumed in our restaurants, a category that’s had a hold on consumers for decades and doesn’t show any signs of slowing down.”

Make mine a mini

While some on-premise visitors in the US are sipping their martinis from fishbowl-sized glasses, there’s a growing trend at the opposite end of the size spectrum.

Mini drinks have caught on both for those seeking to consume less and for patrons who want diversity, for example, in a flight. And, of course, they look great on Instagram.

“I adore this trend for so many reasons,” notes Duff. “Mini cocktails have real traction. They’re playful and social. A line-up of mini martinis or negronis instantly creates a moment on the table. But beyond the aesthetics, they solve a pricing challenge. With cocktail prices rising, a flight offers guests an exploration without a full commitment. It feels like value because it’s an experience.

“It also allows brands to tell a broader story,” she adds. “A mini old fashioned flight showcasing different mashbills or ageing profiles, or a negroni trio featuring a house twist: You’re not just selling a drink, you’re selling an adventure.”

Traveler Street’s Lotz adds, “I think people are sometimes hesitant to try new things, but this lowers the barrier to entry. People have always loved flights. We try and mix it up with interesting twists like three different mini daiquiris. We’ve also done different rum old fashioneds, and we’re working on one that highlights different sugars to use in drinks.”

Return to retro

The classics are enjoying yet another heyday, particularly with newly-minted 21-plus drinkers. “There’s absolutely a return to retro,” Duff says. “Drinks that not that long ago felt dated, suddenly feel fresh again. I think part of it is curiosity. There’s a generation discovering these classics for the first time.

“Another part of this is fatigue. After years of hyper-complicated builds and over-the-top presentation, a clean, well-made collins or a properly balanced manhattan feels honest. It also ties back to everything we’ve been talking about. People want recognisable structure. They want to understand what they’re drinking. A collins is bright and refreshing. A manhattan is spirit-forward and serious. There’s no mystery.

“Cocktail culture moves in cycles, but the fundamentals never really leave,” she continues. “When the quality is there and the execution is tight, even the most ‘retro’ drink can feel completely right for right now.”

Lotz observes: “I’m seeing people get excited about classics that lots of people ordered when I was coming up on the bar, But now, we run them as specials. Drinks like the jack rose or the penicillin inspire customers to try things new to them.”

Modern twists on those classics are also popular. Row 34’s Hongthong remarks: “I think of my oldest son who is 22 and what he and his pals drink when out – it’s usually the new traditional cocktails like the paper plane, naked & famous and espresso martini.”

The mash-up

Another trend gaining traction is the mash-up, usually a classic cocktail reconfigured with a different spirit or two cocktails blended into one, such as a moscow mule margarita (tequila, orange liqueur, lime and ginger beer in a copper mug).

Whiskies, in particular, are playing a leading role in the mash-up trend, infusing cocktails with their savoury, smoky notes, according to Minnesota-based importer & brand owner Prestige Beverage Group. “Nostalgic, highbrow-lowbrow experiments, such as espresso margaritas and negroni twists, fuel classic reinvention,” notes the company’s VP of marketing & trade, Dave McNulty. “The rye-spiced notes of our 2XO [Two Times Oak Kentucky Straight Bourbon brand] shine in bold mash-ups like spicy bourbon margaritas. These twists keep menus fresh.”

Cocktail trends may come and go, but the programmes that succeed balance creativity with simplicity, giving guests drinks that feel both exciting and easy to order. The sweet spot isn’t chasing every fad, but building menus that turn curiosity into repeat bar visits.