Zero Proof, All Fun:
The Rise of Non-Alcoholic Drinks
FOOD FOR THOUGHT
The rise of non-alcoholic beverages in an evolving consumer landscape
In recent years, the grocery industry has witnessed a
significant shift in consumer preferences, particularly with the
sales of non-alcoholic beverages and the growing sober-
curious movement. As more individuals seek mindful drinking
options, alternatives like mocktails and euphoric-infused
drinks are experiencing notable sales growth.
In this Food For Thought newsletter, we’ll explore the latest
innovations in the non-alcoholic beverage market, examine
the factors driving this shift, and highlight the exciting
products capturing shoppers’ attention. Join us as we dive
into the evolving landscape of mindful drinking and the future
of beverage consumption.
THE RISE OF NON ALC
Total Alcohol and NA
Though many subcategories within the department are either declining or staying flat, there are some bright spots like
RTD Cocktails and Fortified & Other Specialty Wine
CA TE GORY DOLLA RS $, % CHG UNITS , %
CHG
Beer $38B +0% -1%
Spirits & Liquor $10B +0% +2%
Flavored Malt Bev. & Other $8B +1% +2%
Red Wine $6B -4% -6%
White Wine $6B +1% -2%
RTD Cocktails $2B +22% +18%
Sparkling Wine $2B -1% -3%
Fortified & Other Sp. Wine $944M +9% +16%
Blush & Rose Wine $944M -5% -9%
Hard Cider $490M -1% -2%
Cocktail Mixes $307M -3% -7%
Bitters & Syrups & Other $80M +6% +5%
Viewing the alcohol department in totality, which combines both
alcoholic and non-alcoholic options, we can see that RTD
Cocktails is seeing the largest growth. Fortified & Other
Specialty Wine as well as Bitters, Syrups & Other are also seeing
positive dollar and unit sales.
Since 2020, RTD cocktails have grown in popularity and now 4
years later it is still seeing strong consumer interest. Cocktails in
a can allow consumers to have that ‘bar experience’ but in the
comforts of their home and at a much cheaper price.
Currently, less than 1% of the sales in the alcohol department is
attributed to NA but it continues to grow and in fact contributes
to an out-sized portion of growth.
THE RISE OF NON A LC
Alcohol Alternatives: Small in Sales, Huge in Impact
Though sales from the Alcohol department make up a substantial percentage of total market sales, a large portion of
those sales are driven by non-alcoholic beverages, especially those that have a specialty and/or health focus.
L52 Weeks $ Sales
Absolute Positive $ Sales Growth
Non-Alcoholic
All Other Alcohol
1%
$74 B $1.2 B
$1.1 B99%
$123 M
Less than 1% of total Alcohol Department sales come from Non-Alcoholic offerings,
however these contributed 10% of share of growth in Alcohol Department, over $123
Million, in the last 52 weeks.
Non-Alcoholic $493M | +33% YOY
Non-Alcoholic Sales by Positioning Group:
Though conventional alcohol alternatives bring in significant sales, the bulk of Non-
Alcoholic sales come from Specialty & Wellness positioned products, which have seen
impressive year-over-year growth
Conventional
$121M | +24%
Specialty & Wellness
$368M | +74%
Natural
$8M | +174%
THE RISE OF NON A LC
Non-Alcoholic Category
With every single subcategory reporting an increase in sales, the non-alcoholic category is seeing strong growth
CA TE GORY DOLLA RS $, % CHG UNITS , %
CHG
Beer $383M +24% +21%
Flavored Malt Bev. & Other $36M +119% +83%
White Wine $20M +47% +39%
Sparkling Wine $15M +73% +64%
Red Wine $14M +36% +27%
RTD Cocktails $10M +112% +105%
Spirits & Liquor $7M +67% +79%
Blush & Rose Wine $7M +70% +68%
Hard Cider $0.6M +484% +480%
Fortified & Other Spec. Wine $0.3M +55% +58%
Articles about the decline in alcohol consumption and the rise of
non-alcoholic options have gotten a lot of buzz lately. Looking at
the sales data, it seems to ring true.
Though the beer subcategory remains the largest player in the
NA space, there is growing interest throughout the entire space.
Some of the fastest growing include Hard Cider, Flavored Malt
Bev,. & Other as well as RTD Cocktails.
However, it is important to note that this only refers to
traditional non-alcoholic counterparts. There are many
beverages in the NA space that straddle the line between being
non-alcoholic and being a functional beverage.
THE RISE OF NON A LC
Buzz-worthy: Mocktails Gain Momentum
The influence of social media on beverage trends is undeniable: TikTok trends continue to translate into retail success
for beverage products.
Interest in mocktails has steadily risen on TikTok over the past few years; 55% of mocktail content viewers are aged
18-24, suggesting growing potential for NA option as these consumers’ buying power increases.
TikTok: #mocktails
Interest over time Audience insights
Age range
THE RISE OF NON A LC
Why Are Fewer Young Adults Choosing Alcohol?
There are several reasons why today’s young adults are less likely to drink than the same age group a decade or two
ago. Some of these being demographics, health concerns, and increased Marijuana use.
•
According to Gallup, the overall drinking rate among 18- to
34-year-olds has naturally fallen as the proportion who are
non-White has increased
•
Demographic changes explain some of the decline in young
adults’ drinking, but Gallup still finds fewer young people
reporting they use alcohol than did in the past, regardless of
race.
•
Young adults are particularly concerned that moderate
drinking is unhealthy, with 52% now holding this view, up
from 34% five years ago
Share of consumers drinking more non-alcoholic drinks than the year prior in the United States in 2022, by generation
THE RISE OF NON A LC
Rising Trends in Marijuana Use Among Youth
Health and wellness continue to be major emerging trends in the US, with Gen Z leading a shift in how recreational substances are
approached. Over 1 in 5 Gen Zers (21.7%) reported using marijuana for recreational or medicinal purposes, compared to just 10% of
the broader US population.
•
Marijuana use has almost doubled among adults aged 18 to
34 since Gallup first measured whether Americans smoke it
in 2013, rising 11 points to 25% in 2021-2023.
•
This isn’t just unique to young adults, as marijuana usage has
increased 13 points from 4% to 17% — among middle-aged
adults.
•
To follow these trends alcohol manufacturers are expanding
their product portfolio to introduce non-alcohol variants or
innovations that include functional benefits such as CBD and
THC.
Alcohol Purchasing and Marijuana Usage
% of Households | Latest 12 Months Ending 12/31/2023
For marijuana usage: Q. Do you currently smoke (or consume) marijuana? Source: Numerator | Limited to 21+ year old households
THE RISE OF NON A LC
Low-to-No Alcohol and Health Optimization
Dry January kicked off in 2013 as a month-long challenge to reduce alcohol consumption. Today, consumers are
looking for more opportunities to reduce alcohol consumption and make the most of their day – all throughout the year
Low-to-No Alcohol options have long been touted as the up-
and-coming trend in the Alcohol segment. As shoppers continue
to look for Better-For-You options on the shelf, they’re seeking
out new ways to optimize their health.
For some shoppers, health optimization means reducing the
amount of alcohol in their diets. For others, it means seeking
out functionality on top of taste.
A Gallup poll published in August 2024 identifies that “almost
nine in 10 U.S. adults say alcohol use is “very” (33%) or
“somewhat” (53%) harmful to those who drink it.”1
Today, store aisles and bar menus are packed with low-to-no
options that allow for more choice, more product types, and
more ABV variation
New High in Americans’ View of Alcohol Consumption as Bad for Health
Do you, personally, think drinking in moderation – that is, one or two drinks a day – [ROTATED: is good for your health, makes no difference or is bad for your health]?
Those with no opinion are not shown.
THE RISE OF NON A LC
Euphorics Help Buyers Lift their Spirits, Without any Spirits
Consumers are looking outside of alcohol for ways to elevate their mood, enhance their mind, or achieve a temporary buzz.
Enter – Euphorics. This fast-emerging set of beverages rely on natural ingredients to lift or relax, without the hangover.
+151.0%
+54.7%
+4035.3%
+106.8%
+177.8%
+95.2%
+111.9%
+65.9%
+146.0%
+3.2%
+605.6%
+1534.8%
+68.5%
+25.5%
+366.0%
Largest Growing Functional Ingredients Across Euphoric Beverage Brands
ASHWAGANDHA
MUSHROOMS – REISHI
THC DELTA 8
MAGNESIUM
MUSHROOMS – OTHER
THEANINE
HOPS
MUSHROOMS – CORDYCEP
ZINC
CANNABIDIOL (CBD)
HEMP SEEDS & DERIVATIVES
KRATOM
KAVA
RHODIOLA
MUSHROOMS – CHAGA
+$10.8M
+$6.6M
+$4.9M
+$3.9M
+$3.1M
+$2.4M
+$1.0M
+$0.9M
+$0.8M
+$0.7M
+$0.6M
+$0.4M
+$0.1M
+$0.1M
+$0.1M
By Absolute $ Growth
Top Ingredient:
THC Delta 8
Top Ingredient:
Ashwagandha
Top Ingredient:
Theanine
$ % Change vs YA
…heart-opening key actives of
Damiana, Schisandra, and L-
Theanine will have you skipping
joyfully throughout your day
– Kin Euphorics
[adaptogens, nootropics,
botanicals]…provides a stress-
relieving, mood-boosting lift we
like to call ‘the float.
– Hiyo
…high-potency THC seltzer
produces an intensely euphoric
and deeply relaxing
psychoactive experience.
– Crescent 9
What makes these beverages euphoric?
THE RISE OF NON A LC
Today’s NA Beverages Blur Traditional Category Lines
With more options than ever, Euphorics are just one example of consumers expanding their consideration sets and
introducing new NA drinks into their daily (or nightly) routines – from waters, to sodas, to trending “sleepy girl mocktails”.
Is it Functional, Euphoric, or all of the above? While we can point to
brand examples, there
is not yet one concrete
list of ingredients or
benefits that decidedly
make up Euphorics.
Definitions continue to
expand with new
offerings and are
toeing the line
between traditionally
defined categories.
Mushrooms
Mushroom Elixirs highlight
adaptogens and appeal to
nostalgic soda flavors
Hops
Hop Waters offer similar-
tasting alternative to beer,
often with added functional
ingredients
Elderberry
Immunity-boosting herbal
tonics can make for a very
practical mocktail
Euphorics
Sparkling
Waters or
Seltzers
Non-
Alcoholic
RTD
Cocktails
Functional
Beverages
or Teas
THE RISE OF NON A LC
Buzz-worthy: What’s Trending in the Alcohol Aisle?
The influence of social media on beverage trends is undeniable: TikTok trends continue to translate into retail success
for beverage products.
Aperol is trending with surging Google & TikTok searches. While known
as a summer drink, searches are rising in winter compared to YA. New
innovations include RTD options & NA Aperol-inspired alternatives.
Google Trends: aperol
TikTok: #aperol
0
50
100
10/21 02/22 06/22 10/22 02/23 06/23 10/23 02/24 06/24
The viral TikTok drink featuring BuzzBall & Beatbox has catapulted these
2 brands into being 2 of the 3 fastest-growing RTD cocktail brands vs YA.
Some retailers are even merchandising these items together to capitalize
on opportunity.
THE RISE OF NON A LC
Non-Alcoholic Beverage Innovation, So Last Year?
With the highest number of new items launching in January and July, the innovation seen in 2023 does not seem to be
continuing into 2024.
New Items Launched by Product Type Beer brands were quick to innovate, reaching a peak of new product
launches in 2022. Since then, innovation has slowed as early leaders
continue to expand and solidify their market positions with creative new
flavors.
2021 2022 2023 2024
BEER RTD COCKTAILS WINE OTHER FLAVORED MALT BEVERAGES & OTHER
139 162
212
86
NA RTD Cocktails and Wine reached their new item peak in 2023, but this
trend has not carried over into 2024.
Flavored Malt Beverages & Other is the only type that have seen an
increase in new item launches in 2024 compared to previous years.
THE RISE OF NON A LC
Innovation is Surging in NA Hard Seltzers
NA Malt Beverages & Other: The Only Subcategory to See an Increase in New Item Launches in 2024, Fueled by NA
Hard Seltzers
202420232022
FLAVORED MALT BEVERAGES & OTHER HARD SELTZER
NA Hard Seltzers went from 1% of category share to nearly 14%
in 2 years as new items are launching.
NA Hard Seltzer Share vs Category
1%
1%
14%
99%
99%
86%
NA hard seltzers often resemble their alcoholic counterparts,
making them a perfect fit for social settings like parties or bars.
Additionally, some are enhanced with euphoric and mood-
boosting functional ingredients.
THE RISE OF NON A LC
RTD Mocktails: A new baseline?
Sales in 2023 saw a significant increase due to a surge of new products. However, NA RTD Cocktails saw the steepest
decline in new items launched in 2024, leading to slowed growth as the subcategory appears to be leveling out.
Non-alcoholic RTD cocktails are pre-mixed beverages that
mimic traditional cocktails but contain no alcohol.
NA RTD Cocktail Sales Growth
While new products can drive initial sales as shoppers
experiment, these purchases from consumers may not always
lead to repeat buying, leading to softening growth as innovation
slows.
$1.5M
$4.8M
$10.2M
2022 2023 2024
New Items Launched
33 72 16
+163%
FOOD FOR THOUGH T
Meet the Food for Thought Newsletter Team
Lottie Lawlor
Acct Manager, Channel Partners
Evonne Chan
Data Analyst
Anna Fabbri
Sr Analyst, Client Insights
Brittany Moore
Program Manager, Product
Intelligence
Ivette del Villar
Acct Manager, Channel Partners
Katie Eilert
Sr Manager, Consulting
Rachel Brobst
Acct Manager, Retail Success
Sara Ober
Retail Insights Manager
