To Drink or Not to Drink?

Every New Year ushers in a wave of resolutions aimed at healthier living—working out more, losing weight, and for many, cutting back on alcohol consumption.

The Rise of the Non-Alcoholic Market

The non-alcoholic (NA) and low-alcohol beverage market has been expanding for years, driven by shifting preferences among younger generations. In 2023, Millennials represented 45% of U.S. non-alcoholic beverage consumers, while Gen Z accounted for 17%. This growing trend reflects a broader move toward health-conscious choices, as highlighted by a 2023 survey by Casinos.us: 67% of Americans are actively reducing their alcohol intake. Globally, the non-alcoholic beverage market is projected to grow by 7% annually from 2023 to 2027, eventually capturing nearly 4% of the overall alcohol market, according to IWSR.

Consumption Patterns and Market Trends

While NA drinks are the fastest-growing segment in the alcohol market—with sales increasing by 32% between 2022 and 2023—traditional alcohol sales grew by just 1% in the same period. Non-alcoholic beer, wine, and liquor have surged in popularity, with Whole Foods reporting its top-selling beer in early 2024 as a non-alcoholic option. Despite these trends, many consumers aren’t fully abstaining from alcohol but are alternating between alcoholic and non-alcoholic beverages. Over 80% of NA drink buyers also purchase alcoholic drinks, reflecting a “sober-curious” movement rather than full sobriety.

Detailed Market Insights

According to analysis by IWSR*, the no-alcohol beverage sector saw significant growth in 2023, with volumes rising by 29% compared to 2022, far outpacing the low-alcohol category’s 7% growth. Leading the charge were no-alcohol beers and ciders, which accounted for 81% of servings and saw a 30% increase in volume. Meanwhile, no-alcohol wine volumes grew by 18%, and spirits and ready-to-drink (RTD) options achieved dynamic increases of 32% and 36%, respectively. Even the emerging “alcohol-adjacent” category showed promise, growing by 15% year-over-year.

A Balanced Lifestyle Trend

Despite the impressive growth in no-alcohol options, the data suggests a nuanced relationship with alcohol. Consumers are not giving up drinking entirely but are instead integrating healthier choices into their routines. This shift aligns with broader wellness trends, allowing for moderation without full abstinence.

Conclusion

The non-alcoholic beverage market is not just a fleeting trend; it reflects a broader cultural movement toward mindful consumption. As consumer priorities evolve, this market is poised to continue its upward trajectory, offering more choices for those navigating their relationship with alcohol.