Discussing trends can often lead us into the weeds of what’s currently popular without truly understanding the lasting cultural and behavioural shifts that will significantly impact industries over the long term. One such enduring trend is the rise of mindful drinking and the ‘NoLo’ movement (no and low alcohol), primarily driven by millennials and Gen Z who are increasingly seeking alternatives to traditional alcoholic beverages.

The non-alcoholic sector is experiencing substantial growth due to increasing consumer demand and continued innovation within the industry. Market forecasts predict a 25% increase in volume from 2022 to 2026. Anheuser-Busch InBev, the world’s largest brewer, has set a target for its no and low-alcohol beers to make up a fifth of its total sales by 2025. Meanwhile, the launch of new non-alcoholic spirits, wines, and beers is on the rise. But what exactly is fuelling this sector’s growth, and what are the key success factors for brands looking to capitalise on this shift?

Mindful Drinking: A Focus on Moderation Rather Than Abstinence

In 2022, the non-alcoholic sector’s market value exceeded 11 billion Euros, spurred by demand for non-alcoholic beer, wine, spirits, and ready-to-drink products. Interestingly, this surge is not just from teetotallers but also from those reducing their intake of both soft drinks and alcoholic beverages. Data from IWSR shows that 82% of consumers who drink non-alcoholic beverages also consume alcohol, indicating a preference for moderation over complete abstinence.

Solène Marchand, the head of marketing for Pernod Ricard’s non-alcoholic products, points out that 71% of consumers of their non-alcoholic spirits also drink alcoholic versions. “This is quite significant in how we communicate with our consumers,” she stated earlier this year. “They are already familiar with consuming alcoholic cocktails, and the aim is to offer them similar alternatives but in a non-alcoholic format.”

This trend highlights a shift in consumer behaviour where the focus is increasingly on health and wellness, alongside the enjoyment of similar experiences provided by alcoholic beverages without the alcohol content.

As this movement continues to grow, it presents a significant opportunity for brands to innovate and expand their offerings to meet this new consumer demand. It’s clear that as we move forward, understanding and adapting to these shifts in consumer preferences will be crucial for businesses looking to thrive in the evolving landscape of the beverage industry.