Non-Alcoholic Beverages: Market Trends and Opportunities for Alternatives to Alcoholic Beverages, 1st Edition

Description

Retail sales of non-alcoholic beverage alternatives are forecast to rise at an average annual rate of 18.5% through 2029. Growth will be supported by product innovations such as improved flavor and new releases. Expansion in product availability will increase consumer penetration and accommodate more types of drinkers. Additionally, sales are boosted by changes in drinking habits that differ across generations, interest among drinkers in ways to moderate alcohol use while drinking, and increasing awareness of the health effects of alcohol consumption.

Retail sales of NA alternatives to alcoholic beverages in the scope of this report are segmented by type. Sales are presented in US dollars.

Sales by product are presented for:

Non-Alcoholic Beer

Non-Alcoholic Cocktails/Mocktails

Non-Alcoholic Spirits

Non-Alcoholic Wine

Consumer demographics, perceptions, motivations, and behavior are examined as pertaining to beverage choices and consumption of NA beverage alternatives. The reasons for and implications of shifts in consumer perception and behavior are analyzed in the context of future market opportunities.

Scope of the report:

This report analyzes the scope, size, and growth of the US retail market for non-alcoholic beverage alternatives, including key trends in product innovations, data-driven analysis of drinking habits, consumer preferences and habits, and more. Historical data are provided from 2019 through 2024 and forecast from 2025 through 2029 and 2034. Data are provided in US dollars at retail point-of-sale level. Also included is an analysis of non-alcoholic beverage consumer demographics as well as key habits and attitudes.

Product Code: LA19954535

Table of Content

CHAPTER 1: EXECUTIVE SUMMARY

Motivations for Embracing Non-Alcoholic Alternatives to Alcoholic Beverages
The "Sober Curious" Movement: A Catalyst for Change
Generational Shifts: Younger Adults Opting for Sobriety
The Effects of Growing Cannabis Consumption
Future Outlook and Growth Opportunities
Scope

CHAPTER 2: RECENT HISTORICAL TRENDS

HIGHLIGHTS
RISING PRICES: FROM SUPPLY CHAIN CRUNCHES TO INFLATION

Table 2-1. Consumer Concerns about Rising Food Prices, 2021 - 2024 (percent of consumers)

Rising Prices Impact Consumer Behavior
Cutting Back on Household Expenses

Table 2-2. Consumers Cutting Back on Household Expenses in the Last 12 Months, 2022 (percent of consumers)
Table 2-3. Types of Household Expenses Cut Back on in the Last 12 Months, 2022 (percent of consumers)
Table 2-4. Consumer Spending on "Extras", 2023 - 2024 (percent of consumers)

Private Labels Are More Desirable as Prices Rise

Figure 2-1. In 2024, Sales of Private Label Items Are Mostly Increasing as Sales from National Brands Decline
Figure 2-2. Private Label CPG Dollar Share, Unit Sales Growth, and Store Foot Traffic Changes

The Vast Majority of Consumers Have Noticed the Rising Cost of Food, and Many Are Changing Their Purchasing Decisions

Figure 2-3. Noticing the Rising Cost of Food and Beverages over the Past Year, 2024
Figure 2-4. Impact of Rising Costs on Food/Beverage Purchasing, 2024
Consumers Find Price More Important for Food Purchase Decisions in
Figure 2-5. Purchase Drivers for Food and Beverage Purchase Decisions, 2024
Figure 2-6. Purchase Drivers for Food and Beverage Purchase Decisions by Household Income Bracket, 2024

SNACKING AND HEALTHY EATING HABITS

Trends in
Figure 2-7. Coronavirus Habits in Snacking, Eating Frequency, and Eating "Comfort" Foods, 2021 - 2022 (percent of consumers)
Figure 2-8. Coronavirus Habits in Eating Fresh Produce and Processed Foods, 2021 - 2022 (percent of consumers)
Changes to Snacking Habits in
Table 2-5. Current Snacking Activity Compared to Pre-Pandemic Levels, 2023 (percent of consumers)

Increasing Use of Semaglutide Medications Can Change Snacking and Eating Habits
ONLINE GROCERY SHOPPING AND CONVENIENCE FOOD OPTIONS
The COVID-19 Pandemic Was the Jumpstart the Online Grocery Market Needed
Impact on the Alcoholic Beverage and NA Beverage Market

Activity in 2023 and

Frequency of Grocery Shopping in 2023: In-Person vs. Online

Figure 2-9. Frequency of Buying Groceries In-Person and Online, 2023

Use of Grocery Carryout and Delivery Methods in the Last 12 Months

Table 2-6. Consumer Use of Food Ordering Methods in the Last 12 Months, 2024 (percent of consumers)

Frequency of Grocery Pickup and Delivery Habits in the Last 3 Months

Table 2-7. Consumer Frequency of Food Ordering Methods in the Last 3 Months, 2024 (percent of consumers who have used each method in the last 12 months)

Frequency of Grocery Pickup and Delivery Habits Now Compared to 12 Months Ago

Table 2-8. Consumer Frequency of Food Ordering Habits Now Compared to 12 Months Ago, 2024 (percent of consumers who have used each method in the last 12 months)

Expected Changes to Grocery Pickup and Delivery Habits in the Next 12 Months

Table 2-9. Consumer Expected Changes to the Frequency of Food Ordering Habits in the Next 12 Months, 2024 (percent of consumers)

WORK HABITS
Food and Beverage Trends in the Context of Changes to Work

Changes to Work Patterns Continued in
Figure 2-10. Coronavirus Changes to Work Patterns, 2021 - 2022 (percent of consumers)
Working from Home in

Work from Home Ability and Frequency

Table 2-10. Ability to Work from Home and Frequency of Remote Work, 2023 (percent of consumers)

Working at a Co-Working Space or Working from Home

Table 2-11. Working at a Co-Working Space or Working from Home, 2023 (percent of consumers)
Table 2-12. Consumer Rating of Experiences Working at a Co-Working Space or Working from Home, 2023 (percent of consumers who have ever had each experience)
Table 2-13. Consumer Opinions on Working at a Co-Working Space or Working from Home, 2023 (percent of employed consumers)
Work Habits in

Typical Work Weeks

Table 2-14. Where Time Is Spent during a Typical Work Week, 2024 (percent of employed consumers)

Typical Work Arrangements

Figure 2-11. Typical Work Arrangements (Fully Remote, Hybrid, and Traditional), 2024 (percent of employed consumers)

PERSONAL FEELINGS OF WELLBEING

Reporting Negative Mental States in
Figure 2-12. Current Feelings on Mental and Physical Symptoms Compared to "Normal" or Preferred Level, 2023 (percent of consumers)
Continuing Mental and Physical Health Effects in
Table 2-15. Current Feelings on Mental and Physical Symptoms Compared to "Normal" or Preferred Level, 2024 (percent of consumers)

Stress Levels and Impact on Food/Beverage Consumption

Figure 2-13. Stress Levels in the Last Six Months and Impact on Healthfulness of Food/Beverage Consumption, 2024
Figure 2-14. Sources of Stress for Consumers Who Were Very or Somewhat Stressed in the Last Six Months, 2024
Figure 2-15. Top Sources of Stress in the Last Six Months by Generation, 2024
Figure 2-16. Happiness, Stress, and Health Status by Household Income Bracket, 2024
Figure 2-17. Impact of Food Consumption on Mental or Emotional Well-Being, 2024

CHAPTER 3: OVERVIEW AND MARKET TRENDS

HIGHLIGHTS
DEFINITION
REASONS FOR CONSUMPTION AND ABSTENTION: THE ROLE OF ALCOHOLIC BEVERAGES AND NON-ALCOHOLIC ALTERNATIVES

Figure 3-1. Non-Alcoholic Wines from a Large Independent Producer
Figure 3-2. Non-Alcoholic Beers Marketed as Craft Beers with No Compromise
Figure 3-3. Non-Alcoholic Spirits as a Direct Replacement for Alcoholic Spirits

THE "SOBER CURIOUS" MOVEMENT AND "DRY JANUARY"
YOUNG ADULTS ARE LESS LIKELY TO DRINK ALCOHOLIC BEVERAGES THAN IN PREVIOUS GENERATIONS
GROWING AWARENESS OF THE RISKS OF ALCOHOL CONSUMPTION
INCREASING LEGALIZATION AND SOCIAL ACCEPTANCE OF CANNABIS

Figure 3-4. Cannabis-Infused NA Spirits and Cocktails

"ZEBRA STRIPING" ALTERNATES DRINKING ALCOHOL AND NA OPTIONS - TARGETING CONSUMERS WHO ALSO DRINK ALCOHOLIC BEVERAGES
INCREASING USE OF SEMAGLUTIDE MEDICATIONS CAN CHANGE DRINKING HABITS
THE LOOK OF NA BEVERAGE OPTIONS IS KEY
BAR AND RESTAURANT TRENDS IN NA BEVERAGE ALTERNATIVES
Increased Stocking of Non-Alcoholic Beer, Spirits, and Wine
Elevated and Sophisticated Mocktails
Focus on Fresh and Seasonal Ingredients
Plant-Based and Innovative Bases
"Better-For-You" Takes on the Classics
Occasion-Specific and Themed Offerings
MINDFUL AND INTUITIVE EATING EXTENDS TO DRINKING
Definition

Figure 3-5. Following Specific Eating Patterns or Diets in the Past Year, 2024

Motivations for Practicing Mindful Eating

Figure 3-6. Motivations for Following Mindful Eating Practices in the Past Year, 2024

Frequency of Feelings and Behaviors Associated with Mindful and Intuitive Eating Patterns

Figure 3-7. Frequency of Feelings and Behaviors Associated with Eating, 2024

Relationship with Food

Figure 3-8. Consumer Rating of Relationship with Food, 2024

"BETTER-FOR-YOU" TRENDS
Clean Label

Figure 3-9. Clean Label RTD Cocktails Non-GMO, Organic Ingredients and No Artificial Colors or Flavors

Unrefined Sugar

Figure 3-10. NA Cocktail Uses Cane Sugar and "Nothing Refined or Artificial"

Sugar-Free/No Sugar Added Products and Alternative Sweeteners

Figure 3-11. Zero Calorie, Zero Sugar NA Spirits

Organic and Non-GMO Products

Figure 3-12. Non-GMO Verified NA Wine Alternative with Organic Ingredients

FUNCTIONAL BEVERAGE TRENDS
Functional Beverage Definition
Relaxation and Stress Relief

Figure 3-13. NA Cocktails for Calm, Clarity, and Vitality

"Superfoods", "Adaptogens", and "Food as Medicine"

Figure 3-14. NA Cocktails with Adaptogens

Hemp and CBD

Figure 3-15. Sparkling Hemp Beverages Marketed to Restore and Rejuvenate the Mind and Body

Brain Health, Cognitive Function (Nootropics), and Mental Focus

Figure 3-16. NA Beer Alternatives Purport to Enhance Cognitive Performance and Reduce Stress

Energy and Sports Functions

Figure 3-17. NA Beer with Electrolytes for Fitness Activities and Post-Workout Recovery
Figure 3-18. NA Spirit Alternative with Natural Caffeine for an Energy Boost

Immunity Boosting and Gut Health

Figure 3-19. NA Shrub for Gut Health and Immunity for Use in Cocktails or Seltzer

CHAPTER 4: MARKET SIZE

HIGHLIGHTS
SCOPE
NA BEVERAGE RETAIL SALES

Table 4-1. NA Beverage Alternative Retail Sales by Type, 2019-2024 (million dollars)
Table 4-2. NA Beverage Alternative Retail Sales by Type, 2024, 2025P-2029P, 2034P (million dollars)

GROWTH OPPORTUNITIES
Flavor and Ingredient Innovation

CHAPTER 5: CONSUMER DEMOGRAPHICS

HIGHLIGHTS
ALCOHOLIC BEVERAGE DRINKING HABITS

Table 5-1. Frequency of Typical Alcohol Drinking Habits by Age Bracket, 2024 (percent of consumers)
Table 5-2. Consumption of Alcoholic Beverages in the Last 6 Months by Product Type, 2024 (percent of consumers)
Table 5-3. Consumption of Alcoholic Coolers & Seltzers/Number of Drinks in the Last 30 Days, 2024 (percent of consumers)
Table 5-4. Location of Alcoholic Beverage Purchases in the Last 6 Months, 2024 (percent of consumers purchasing beer, wine, or liquor in the last 6 months)
Table 5-5. Location of Alcoholic Beverage Consumption in the Last 30 Days, 2024 (percent of consumers consuming beer, wine, or liquor in the last 30 days)
Table 5-6. Amount Spent on Alcoholic Beverages in Last 30 Days, 2024 (percent of consumers)

INTEREST IN "SOBER CURIOUS" LIFESTYLES AND "DRY JANUARY"

Figure 5-1. Familiarity with the Term "Sober Curious", 2024 (percent of consumers)
Figure 5-2. Considering Self to Be "Sober Curious", 2024 (percent of consumers familiar with the term "sober curious")
Figure 5-3. Participation in Dry January, 2024 (percent of consumers)

CONSUMPTION OF NO ALCOHOL BEVERAGES

Table 5-7. Last Consumption of Low/No-Alcohol Beverages, 2024 (percent of consumers)
Table 5-8. Consumption of No Alcohol/Low-Alcohol Beer, 2024 (percent of consumers)
Table 5-9. Consumption of No Alcohol/Low-Alcohol Beer by Brand in the Last 6 Months, 2024 (percent of consumers)

NA BEVERAGE ALTERNATIVES MOST POPULAR AMONG YOUNGER CONSUMERS

Table 5-10. Consumption of NA Beverage Alternatives in the Last Month by Age Bracket, 2024 (percent of consumers)
Table 5-11. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by Age Bracket, 2024 (percent of consumers)

MEN ARE SOMEWHAT MORE LIKELY TO REPORT DRINKING NA BEVERAGES IN THE LAST MONTH

Table 5-12. Consumption of NA Beverage Alternatives in the Last Month by Gender, 2024 (percent of consumers)
Table 5-13. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by Gender, 2024 (percent of consumers)

NA BEVERAGE CONSUMPTION VARIES ACROSS INCOME GROUPS

Table 5-14. Consumption of NA Beverage Alternatives in the Last Month by Household Income Bracket, 2024 (percent of consumers)
Table 5-15. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by Household Income Bracket, 2024 (percent of consumers)

MARRIED/PARTNERED CONSUMERS AND PRESENCE OF CHILDREN IN THE HOUSEHOLD

Table 5-16. Consumption of NA Beverage Alternatives in the Last Month by Presence of Children in HH and Marriage/Partnership, 2024 (percent of consumers)
Table 5-17. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by Presence of Children in HH and Marriage/Partnership, 2024 (percent of consumers)

CONSUMERS LIVING IN THE NORTHEAST AND WEST MOST INTERESTED IN NA BEVERAGES

Table 5-18. Consumption of NA Beverage Alternatives in the Last Month by US Region, 2024 (percent of consumers)
Table 5-19. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by US Region, 2024 (percent of consumers)

NA BEVERAGE ALTERNATIVES MORE POPULAR AMONG URBAN CONSUMERS

Table 5-20. Consumption of NA Beverage Alternatives in the Last Month by Rural, Suburban, and Urban Environment, 2024 (percent of consumers)
Table 5-21. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by Age Bracket, 2024 (percent of consumers)

CONSUMPTION OF NA BEVERAGES HIGHER AMONG NON-WHITE CONSUMERS

Table 5-22. Consumption of NA Beverage Alternatives in the Last Month by Race/Ethnicity, 2024 (percent of consumers)
Table 5-23. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by Race/Ethnicity, 2024 (percent of consumers)

LGBT CONSUMERS ARE SOMEWHAT MORE LIKELY TO DRINK NA BEER

Table 5-24. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by LGBT Affiliation, 2024 (percent of consumers)

COLLEGE STUDENTS ARE KEY FOR NA BEVERAGE ALTERNATIVES

Table 5-25. Consumption of NA Beverage Alternatives in the Last Month by Educational Attainment, 2024 (percent of consumers)
Table 5-26. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by Educational Attainment, 2024 (percent of consumers)

PLANT-FORWARD EATING CORRELATES WITH USE OF NA DRINKS

Table 5-27. Consumption of NA Beverage Alternatives in the Last Month by Primary Diet/Eating Philosophy, 2024 (percent of consumers)
Table 5-28. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by Primary Diet/Eating Philosophy, 2024 (percent of consumers)

ONLINE GROCERY SHOPPERS MORE LIKELY TO CONSUME NA BEVERAGE ALTERNATIVES

Table 5-29. Consumption of NA Beverage Alternatives in the Last Month by Use of Online Grocery Websites in the Last 30 Days, 2024 (percent of consumers)
Table 5-30. Consumption of Alcoholic Beverages and NA/LA Beer in the Last Six Months by Use of Online Grocery Delivery Services in the Last 30 Days, 2024 (percent of consumers)

CHAPTER 6: CONSUMER PSYCHOGRAPHICS

HIGHLIGHTS
FACTORS THAT COULD CONVINCE CONSUMERS TO TRY OR INCREASE CONSUMPTION OF NA BEVERAGE ALTERNATIVES

Table 6-1. Features that Would Make Consumers More Likely to Try NA Beverages or Have Them More Often, 2024 (percent of consumers)
Table 6-2. Features that Would Make Consumers More Likely to Try NA Beverages or Have Them More Often by Age Bracket, 2024 (percent of consumers who indicate a high influence of 1 or 2 for each feature)

CONSUMER OPINIONS ON ALCOHOLIC AND NA BEVERAGES

Table 6-3. Consumer Agreement on Statements about Alcoholic and Non-Alcoholic Beverages, 2024 (percent of consumers)
Table 6-4. Consumer Agreement on Statements about Alcoholic and Non-Alcoholic Beverages by Age Bracket, 2024 (percent of consumers who agree)

OCCASIONS FOR NA BEVERAGE ALTERNATIVES

Table 6-5. Occasions When Consumers Might Seek Out NA Beverage Alternatives, 2024 (percent of consumers)

ORGANIC FOOD PURCHASES

Table 6-6. Consumer Agreement on Statements about Organic Food Purchases, 2024 (percent of consumers)

FOOD PROCESSING AND CLEAN INGREDIENTS AND LABELS

Table 6-7. Consumer Agreement on Statements about Clean Ingredients, Food Processing, and Labels, 2024 (percent of consumers)

SNACKING BEHAVIOR

Table 6-8. Statements about Snacking, 2024 (percent of consumers who agree)

GROCERY SHOPPING AND MEAL PLANNING HABITS

Table 6-9. Consumer Agreement on Statements about Grocery Shopping and Eating Habits, 2024 (percent of consumers)

COOKING SKILLS

Table 6-10. Consumer Confidence with Cooking Skills, 2024 (percent of consumers)
Table 6-11. Consumer Rating of Cooking Skills, 2024 (percent of consumers)

CONSUMER ATTITUDES ON FOOD AND HEALTH
Attitudes about Carbs, Proteins, and Whole/Unprocessed Foods

Table 6-12. Statements about Sweeteners, Calories, and Sugar, 2024 (percent of consumers who strongly agree)

Preferences for Indulgent Foods

Table 6-13. Indulgent Food Preferences among Those Who Have Had Alcoholic Beverages or NA/LA Beer in the Last 6 Months, 2024 (percent of consumers who agree completely)

Cooking Attitudes

Table 6-14. Cooking Attitudes among Those Who Have Had Alcoholic Beverages or NA/LA Beer in the Last 6 Months, 2024 (percent of consumers who agree completely)

Attitudes on Convenience Foods, Being Busy, and Stress

Table 6-15. Attitudes on Those Who Have Had Alcoholic Beverages or NA/LA Beer in the Last 6 Months, 2024 (percent of consumers who agree completely)

viii April 2025 (C) Packaged Facts
Nutrition and Health Attitudes

Table 6-16. Nutrition and Health Attitudes among Those Who Have Had Alcoholic Beverages or NA/LA Beer in the Last 6 Months, 2024 (percent of consumers who agree completely)

Attitudes on Premium Foods and Paying for Food

Table 6-17. Attitudes on Premium Foods and Paying for Food among Those Who Have Had Alcoholic Beverages or NA/LA Beer in the Last 6 Months, 2024 (percent of consumers who agree completely)

Openness to New Food Experiences

Table 6-18. Attitudes on Openness to New Food Experiences among Those Who Have Had Alcoholic Beverages or NA/LA Beer in the Last 6 Months, 2024 (percent of consumers who agree completely)