With Sober October in full swing, 0% alcohol drinks are high on consumer’s lists.
But the popularity of no and low alcohol options is proving to be consistent beyond the peaks of October and Dry January. With terms like mindful drinking and sober-curious entering the public consciousness, there has been a notable increase in wellness and health centred decision-making when it comes to consuming alcohol.
Cultural shift
A major cultural shift in attitudes toward alcohol consumption has occurred among young people with Gen Z drinking up to 20% less than Millennials did at the same age. A study by the University College London found that in 2019, about 29% of 16-24-year-olds in the UK identified as “non-drinkers”, a sharp increase from just 18% in 2005. The study also found that more than 25% of young adults never drink, up from 10% in 2001.
Millennials also show a marked decline in drinking compared to Generation X. Research indicates that Millennials are drinking about 10% less than Gen X did at the same age.
There is no doubt that there is demand for the non-alcoholic drinks market across the board with an expected revenue of $162.1 billion worldwide in 2024 according to Statista. With an annual global growth rate of 11.15%, the market is projected to reach $275 billion in revenue by 2029.
Enter market research
Market research has played a critical role in developing 0% alcohol products and the growth of the sector, as consumers are becoming more intentional about their alcohol consumption. The research potential has, and continues to be, endless in this area – from identifying key demographics and their preferences and needs and exploring consumer behaviours and the when, where and why of 0% alcohol products. Understanding consumer taste preferences, testing new concepts and honing ideas through new product testing. Exploring the competitive landscape, identifying gaps in the market, inspecting brand positioning and product differentiation. Revealing the need for consumer education about the sector and predicting market size and growth projections. The list continues!
One of the core research functions has been identifying sector trends such as the growth of wellness drinks with functional ingredients and the rise of craft and artisanal products such as non-alcoholic craft beers and spirits. With the US leading the way on beer, and the UK pioneering non-alcoholic spirits, there is an expectation that non-alcoholic products can match up to the established high-quality experience that comes with traditional alcoholic drinks, be that taste experience and complexity, sophistication, packaging, branding and innovation. Especially as many 0% products are priced at the same level as their alcoholic rivals.
It is clear that the rise of 0% alcohol drinks is no longer a niche market but a growing sector that reflects broader societal shifts toward health, inclusivity, and mindfulness. With no signs of this momentum changing, there will be a continued demand for more innovation and product development aimed at meeting consumer demand for sophisticated alcohol-free options. An exciting prospect for market researchers and brands alike.
Leaders in the field
Seedlip – pioneers of high-end non-alcoholic spirits, the brand has become a household name
Athletic Brewing – the world’s largest dedicated non-alcoholic brewery using craft-beer techniques
Lyre’s – paying homage to classic spirits with on-alcoholic alternatives – gin, amaretto, whiskey, rum and more