Boutique Food And Beverage PR Agency Showcase Key Trends In Non Alcoholic Drinks Market

Wellness and mindful living take center stage, with many consumers embracing a healthier lifestyle. In the spirits industry, there is a notable shift in drinking habits especially among Gen Z and Millennials, who are embracing non alcoholic alternatives that align with their health-conscious values.

Did you know . . .

• “The market for non-alcoholic beverages was estimated to be worth USD 1032.17 billion. And as per the current position of the non-alcoholic beverage market business, it would expand at a compound annual growth rate (CAGR) of 4.19 percent from USD 1081.71 billion in 2024 to USD 1501.909 billion by 2032.” (Source: Market Research Future)
• “52 percent of respondents aged 21-34 said they drink alcohol less often now than they did three years ago, highlighting a significant shift in consumption patterns among young professionals.” (Source: Morning Consult)
• “65 percent of Gen Z respondents have reduced their alcohol consumption compared to 37 percent of Baby Boomers. These generations value experiences, wellness, and social connections that do not revolve around alcohol.” International Wines and Spirits Record (IWSR)
• “The Adult Non-Alcoholic Beverage Industry, off-premises sales in 2023 will expand at the fastest rate in the last five years, up 31.2 percent as compared to previous years. As on-premises establishments become more interested in non-alcoholic beverages, this trend is anticipated to continue. “(Source: Nielsen Research)

In this blog, Allen Marketing Communications, Inc., a boutique  food and beverages public relations agency based in New York City, explores the driving forces behind the non-alcoholic drinks market.

Tea And Coffee Innovations

Specialty teas and coffees, including cold brews, nitro coffees, and artisanal tea blends, are becoming staples in the non-alcoholic beverage market. Brands are already concentrating on reduced-calorie, reduced-sugar products with their RTD coffees or RTD teas that offer further advantages including dairy-free claims, protein fortification, and functional ingredients that help with focus.

These drinks offer surprising flavors and energizing properties without the buzz of alcohol. Consumers are choosing low- or no-alcohol drinks for their health and well-being.

Alcohol-Free Spirits

A Nielson report found “22 percent of consumers have been planning to cut their alcohol intake and when questioned on this, “people noted going out less and losing interest in alcohol as the top two reasons.”

The market for non-alcoholic spirits was pioneered by companies like Seedlip and Ritual, who provide substitutes for gin, whiskey, and other spirits. Bartenders can now make exquisite non-alcoholic drinks thanks to these brands.

Craft Non-Alcoholic Beers

Craft breweries are branching into the non-alcoholic market by providing a wide range of tasty selections. These beers appeal to beer fans who are trying to cut back on their alcohol intake as they wish to maintain the complexity and character of classic brews.

Mintel’s 2024 survey reveals “71 percent of millennials and Gen Z consumers are interested in trying new non-alcoholic beverages. This study reveals the innovations of new non-alcoholic beverages in the market. From Kombucha to alcohol free beers on the shelves are already rising to serve the people who are side-lining the harsh impacts of alcoholic drinks.’

Wines Without Alcohol

Alcohol-free wines are becoming more varied and of higher quality. Brands are investing in research and technology to remove alcohol while preserving the complexity and taste of traditional wines, making them a popular choice for wine enthusiasts.

“Premiumization of dealcoholized wine is gaining traction owing to a greater emphasis on flavor, high quality ingredients and more appealing packaging. Consumers perceive non-alcoholic wines as a product worth spending money on.” (Source: Non-Alcoholic Wine Market)

Sober Bars

A sober bar, sometimes referred to as an alcohol-free bar, is a place that only offers non-alcoholic drinks. These places serve people who would rather not consume alcohol but yet want to be part of a lively social environment. Consumers prefer to opt for inventive and sophisticated cocktails including mocktails, alcohol-free wines, beers, and spirits.

“A new study reveals 51 percent Americans wish they had access to a sober bar as an alternative to traditional watering holes” - a trend supported by the International Wine and Spirit Research’s forecast that “the demand for no- and low-alcohol libations will increase roughly one third by 2026.”

Our food and beverages public relations professionals and social media strategists can enhance your brand and drive customer engagement. Contact us today.

By Joanna Allen, chief executive officer, Allen Marketing Communications, Inc.