Over the past 5 years, pandemic health concerns have influenced a number of food and beverage categories, including touching down in the Alcoholic Beverage space. While the Sober Curious trend was already bubbling to the surface in 2019, it has since bloomed from novelty to having a firm foothold on shelves. Today, upwards of 4-foot sections have been carved into precious linear footage of retail shelf space, showcasing legacy and new non-alcoholic beverage brands.
In its early days the Non-Alcoholic Beverage category was frequented by a small demographic of consumers. In 2024 we are seeing a growing consumer-reach that further addresses a broader need in the Beverage category. Alcohol moderation has been borne from health concerns, the rise of marijuana use and growing interest from younger demographics. Today, the Non-Alcoholic category is full of beautifully crafted beverages, whose focus is on quality ingredients and sophisticated flavours – and just happens to be non-alcoholic.
In the US, the Non-Alcoholic Beverage may be a small portion of the total market but it is mighty in its growth. The Non-Alcoholic Beverage category is growing +33% YOY. Less than 1% of total Alcohol category sales come from Non-Alcoholic offerings, however these contributed 10% of share of growth.1
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In Canada, category growth is strong especially during a time when unit consumption moderate at best. The Low Alcohol Beverage category is worth $179M in Canada and is growing in dollars and units: +17% in dollar value and +8.8% in unit consumption.3
Beer is the solid leader in the Non-Alcoholic category but innovation in this space is maturing. Growing interest is following innovation across other segments; some of the fastest growing include Hard Cider, Flavoured Malt Beverages/Seltzers and RTD Cocktails. The attributes being highlighted include niche flavourings such as Aperol-inspired alternatives, herbal/botanical/fruit pairings, and the inclusion of functional ingredients. Above all else though, taste is the key factor for brand success.
Non Alcoholic Beverage Categories:
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1 Spins US – total MULO + Convenience & Total US Natural Expanded Channel, L52w 08/11/2024
2 Spins US – total MULO + Convenience & Total US Natural Expanded Channel, L52w 08/11/2024
3 Nielsen Canada, 52wks Jul 27, 2024
4 Spins US – total MULO + Convenience & Total US Natural Expanded Channel, Non-Alcoholic Beverage, L52w 08/11/2024
