Non-alcoholic beverages: a strategic lever for balanced consumption
As consumers adopt healthier, more balanced lifestyles, the market for no-alcohol or low-alcohol (“No-Low”) beverages is emerging from the shadows as a segment in its own right. Brands and producers who follow this movement can now capitalize on a sustainable, multi-faceted trend.
Nicolas Malfondet
5/13/20253 min read
An important growth
In ten major global markets, the value of the No-Low sector has exceeded $11 billion in 2022, up from $8 billion in 2018, with volume growth in excess of 7% over this period. This pace is set to continue, with an expected annual growth rate of +7%.
Who are the consumers?
The profile of No Low consumers is evolving rapidly: 78% also consume alcohol, but 43% alternate depending on the occasion, while only 17% adopt total abstinence. Millennials make up the largest cohort of consumers, particularly in mature markets such as Europe and North America.
Generational behavior is revealing: IWSR studies show that 73% of Gen Z (21-27 y.o) have consumed alcohol in the last 6 months, compared to 66% two years earlier, signalling a shift in behavior among younger people. This same group shows a growing interest in non-alcoholic alternatives in social contexts.
In what contexts are No-Lows consumed?
No-Low consumption is gaining ground on personal and shared occasions:
Outings with friends: a third of pub crawls in the UK are now entirely alcohol-free, with 34% of consumers alternating between alcohol and No-Low in the same evening, compared with 28% the previous year
Well-being and chosen sobriety: “sober curious” movements such as Dry January and Sober October have popularized temporal sobriety, encouraging alcohol-free consumption for mental and physical well-being
What are No-Low consumers looking for?
Rival taste and uncompromising pleasure
Consumers expect a taste experience on a par with that of alcohol, driving innovation in maceration, fermentation, distillation and the use of botanicals, vitamins, adaptogens or nootropics to enrich the offering. This trend is also reflected in the rise of quality mocktails, which are now available in many bars.
Health, moderation and control
According to IWSR, 37% of No-Low buyers cite the desire to avoid the effects of alcohol, while around a third cite taste as their main motivation. In the UK, 82% of more cautious consumers cite health as a motivation – even 90% among the under-35s.
Challenges and strategic recommendations for market players
Optimize availability: A major obstacle remains availability – over 40% of No-Low consumers say they lack choice in bars or on shelves
Position the brand intelligently: Focus on experience, innovation and transparency (healthy values, sustainable commitment)
Diversify product offering: Offer RTDs, beers, wines and non-alcoholic spirits to attract Gen Z and millennials
Segment marketing: Use of social networks and wellness discourse for Gen Z, and premium and health positioning for millennials; campaigns to support Dry January and Sober October initiatives
Conclusion
The move towards non-alcoholic beverages is not just a replacement phenomenon: it represents a real redefinition of consumer motivations, where pleasure and well-being meet.
Today's producers must seize the opportunity to develop innovative, intelligent and inclusive ranges. Every consumption occasion is an invitation to rethink the experience, without compromising on quality.
This change marks a key turning point for the industry, compared to the arrival of digital photography in the silver age.
Ask NM Spirits Consulting for expert guidance.