Low or no alcohol drinks have become a growing global trend in the beverage industry. And not just because it’s Dry January. In fact, the IWSR reported that, by 2024, consumption of these low/no alcohol drinks is expected to increase by 31% across Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, the UK and the U.S. These 10 territories account for more than 75% of the global low/no alcohol beverage market. The IWSR also forecasted an impressive 8% compound annual growth rate for low/no alcohol between 2021 and 2025.
A chunk of the low/no beverage growth can be attributed to a continued focus on wellness, a trend heavily adopted by younger generations. With that trend likely here to stay, brands will need to consciously create products that appeal to a variety of consumers, including those focused on health.
However, Neilson reports that 78% of non-alcoholic drink buyers in the U.S. are also picking up alcoholic drinks in the store. To us, this signifies how modern consumers, who aim for a healthier lifestyle, are using low/no beverages to simply cut back -but not eliminate- alcohol consumption.
Based on this dynamic, it makes sense why brands like Spindrift, well-known for their deliciously simple sparkling water (and one of our newest partners) is also now making their very own hard seltzer, Spindrift Spiked.
With low/no beverages accounting for roughly 3.5% of the total alcohol market share (according to Beverage Industry), understanding how to adapt and create for this two-sided trend will be key. Even more impressive, in Spain, low/no beer sales account for 13% of total beer sales. Impressive stats like this make us very curious about the future of the low/no alcohol space. Will there be equal growth of non-alcoholic beverages that simply taste like their alcoholic counterparts? Or will brands need to imagine completely new and novel flavors? How will on-premise retailers adapt and include these kinds of drinks on their menus?
Not only are we eager to see how the low/no market continues to develop, but after this blog post, we’re feeling extra thirsty.