Moderation, mindful drinking, “zebra striping”, dry venues, retailers and events – non-alcoholic adult drinks are coming of age and disrupting industry perceptions, formulations and – ultimately – the entire drinking ritual. Is this an existential threat or a paradigm shift? What are the key drivers, demographics and positioning? This is a story of how sober curiosity ended up being exciting, normalised and a pillar of growth for an industry on the defensive.
Delivery
This report comes in PPT.
Key findings
An existential threat or a paradigm shift?
Non-alcoholic adult drinks are registering consistently strong performances across all categories and markets, against the backdrop of an alcoholic drinks industry facing a cocktail of headwinds, and provide a unique opportunity to reshape drinking rituals, occasions and positioning. Change is upon us and should be embraced – the alternative is stagnation and managed decline.
Cross-demographic appeal and optionality
While the current wave of non-alcoholic adult drinks was initially spearheaded by the younger Millennial and Gen Z demographics, the trend has now reached escape velocity and is becoming mainstream, finding relevance across age, gender and class. Moderation and having a choice rather than strict teetotalism remains the core driving force behind the trend.
From alcohol replicas to functionality cues
Adopting a trademark category term and alcohol-adjacent positioning could work for established brand extensions, and it is a step that can prove useful to anchor perceptions in the trend’s initial, educational stages. However, focusing on occasions and serve, and ultimately bravely pushing the limits of experimentation and embracing functionality is where the true strategic potential lies.
The cannabis factor: a hero ingredient?
Adaptogens, nootropics and a particular focus on mood enhancement and recreation will increasingly come to the fore. The cannabis drinks proposition straddles both these need states, while tapping into the rising cultural capital and wave of positive perceptions versus alcohol. Legislative barriers will hold the category back in the short term but long-term potential should not be ignored.
On the defensive: health lobbies and GLP-1 drugs add to the pressures
Headline grabbing anti-alcohol campaigns and the rise of anti-obesity medications that could further curtail consumption rates are underscoring the industry’s already sobering state. Nevertheless, adult non-alcoholic drinks should not be seen as yet another antagonist but rather as an answer to the questions posed both by governments and health professionals.
Why read this report?
Key findings
Intoxicating dynamics and non-alcoholic adult beverages: A snapshot
Not just a fad: Non-alcoholic adult beverages reach escape velocity
Mindfully staying at home: Off-trade dominates across the board
A snapshot of key brands by non-alcoholic category: From legacy to iconic pioneers
Telling a story and charting a path: The Pathfinder
Beyond dealcoholisation: Experimenting with proxies
Curiously experimental: “It’s not a beer, it’s a boost”
Kin Euphorics: From moderation to “braincare”
Optionality not teetotalism: Cutting down cuts across demographics
Why non-alcoholic? Health, religion and identifying key drivers
#DrinkTok, zebra striping and the social media effect
Moderation without compromise: Decelerated occasions and hybrid formats
From evaporation to osmosis: The production methods behind the trend
Functionality through the prism of a need states framework
Can range and price hold the category back?
California sober and “damp” instead of dry: There is a world between sober and drunk
Deconstructing the cannabis beverages trend
Cannabis beverages: Mindful indulgence?
In alcohol’s footsteps: Cannabis as an alcohol alternative
A tobacco moment?
Weight loss drugs and alcoholic drinks: Storm in a beer glass or the great disruptor?
Recommendations/opportunities for growth
Non-alcoholic adult beverages: Embracing the paradigm shift
An intoxicatingly sober future?
Questions we are asking
Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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