The IWSR's latest trends report reveals some excitingly big numbers for non-alc growth in the USA:
The Big Picture
The US no-alcohol market is charging ahead with an expected 18% volume growth year-on-year from 2024 to 2028. While this shows a slight slowdown from previous years, it's still impressive growth that's projected to push the market value close to $5 billion by 2028.
Beers, RTDs & Adjacents
Alcohol-free beer remains the heavyweight champion, but it's the newer categories stealing the spotlight. No-alcohol RTDs and 'alcohol adjacents' are the fastest movers, both predicted to grow by over 20% annually through 2028.
Spirits & wine
The spirits segment isn't far behind, with an expected 18% annual growth, boosted by an influx of new product launches. Meanwhile, wine continues its steady expansion through an already established consumer base.
Premiumisation
In the more mature segments, premium and above-premium beers, wines, and spirits are driving the most growth. In fact, premium-plus products dominate the spirits category (excluding RTDs), suggesting consumers are willing to pay more for quality alcohol-free alternatives.
Who's Drinking and how?
Millennials are leading the charge over Gen Z, showing the highest engagement and most experimentation across different no-alcohol categories.
Legal-age Gen Z drinkers are more likely to be occasional moderators, while Boomers who choose no-alcohol options are more likely to abstain completely.
The motivation behind these choices remains consistent - health consciousness and a desire to limit alcohol intake top the list.
Innovation Nation
The industry is pushing boundaries beyond just replicating taste. Companies like Sentia's GABA Labs are developing products using botanical and synthetic compounds to mirror alcohol's relaxation effects - minus the hangover.
Perception
Celebrity influence is also reshaping perceptions, with figures like Tom Holland and the Delevingne sisters not just endorsing but investing in the space.
Growth Hurdles
Despite the rosy outlook, three key challenges persist:
- Availability in retail and on-premise locations
- Price point: As the general expectation remains that drinks without alcohol should be charged at a lesser rate despite the more significant production costs involved
- Taste: Though improving rapidly with new technology, the comparison game is still a losing battle for many.
[Source: IWSR]
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