The popularity of non-alcoholic beverages is on the increase. Due to growing health-consciousness, especially among Gen Z, as well as more open-mindedness when it comes to drinking habits, the category is no longer as niche as it once was. Not drinking is no longer a taboo for many.
Spirits, the most alcohol-laden of drinks, is a small but important part of this trend.
Non-alcoholic spirits are a great alternative to wine and beer. They have a lower ABV (usually around 40%) but still provide spiciness.
How significant has growth been in the category-within-a-category? Why are non-alcoholic spirits so popular?
Does the trend continue to grow?
The category is growing at a similar rate to that of other non-alcoholic beverages.
According to Euromonitor’s global data, this category is growing at a CAGR of 10%.
Circana’s consumer behavior analytics firm, Circana, reports that in Italy the off-trade category has grown 12.9% from 2023 to 2024. It’s not as impressive as the non-alcoholic beer category (15.4%), but still a strong increase.
Non-alcoholic spirits will account for 2.4% of France’s spirits market in terms of volume in 2023, up from 0.5% in 2018 and 2.4% in 2018.
The category is expected to grow by 12.5% in 2023, while spirits with alcohol will only see a growth of 0.1%.
Why does the consumer want it?
For a variety of reasons, consumers are drawn to non-alcoholic spirit. Circana’s survey, for instance, revealed that consumers are concerned about taste and health.
A survey conducted in Europe, the US, and South Africa found that 22% of respondents chose non-alcoholic spirit because it was healthier for them. 27% said they preferred a more pleasant taste and 27% pointed to plant-based ingredient. More than half of respondents (55%) said they would prefer non-alcoholic spirit because it is’more refreshing’
Ananda Roy explains that consumers prefer alcoholic spirits because of their lower costs and less taboo.
They choose the drink as an extension to their brand.
Spiros malandrakis is the Head of research for alcohol drinks at Euromonitor
There may, however, be another factor. Spiros malandrakis is the head of research at Euromonitor for alcohol drinks. He says that consumers’ interest in nonalcoholic spirits stems from fashion, not flavour.
He said that “they choose the drink as an extension to their brand.” Adult non-alcoholic beverages are closer to fashion than to food.
He uses the example of the surge in bourbon sales in the US during the last decade. This coincided with TV shows such as Mad Men or Boardwalk Empire. In both shows, characters are seen drinking large amounts of bourbon and, in Mad Men, Old Fashioned Cocktails, which contain bourbon as a main ingredient.
He summarizes that people are looking for a beverage with a high quality and makes them feel like they belong to the group.
Next stage
Malandrakis believes that functional spirits are the future of this trend. This is the future of alcohol, and it will be more functional.
The non-alcoholic drinks industry is already a major player in the functional drink market, which continues to grow.
