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Mindful Drinking: No/Lo Comes of Age

11/20/2023
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Functionality cues are increasingly replacing simplistic dealcoholisation approaches, and botanical alchemy and molecular experimentation with new ingredients are making the no/lo landscape one of the most innovative and exciting in the alcohol ecosystem. It is here to stay.

Mindful drinking and sober curiosity, moderation initiatives, “dry” venues and events, no/lo-focused retailers and a cornucopia of launches and innovation that is blurring the definitional lines between the alcoholic and non-alcoholic universes – there is little doubt that the once niche trend is now established, evolving and yet still holds huge untapped future potential.

All major non-alcoholic segments were among the top performers in Euromonitor International’s latest alcoholic drinks research; from non-alcoholic beer, already present and embedded in drinking culture for decades, yet still witnessing enviable 6% total volume growth for 2022, to the emerging non-alcoholic wine segment posting 9% total volume growth. The double-digit momentum of the relative newcomer, non-alcoholic RTDs, to non-alcoholic spirits spearheading innovation and a pivot to functionality with 10% total volume growth, all prove this is much more than just a passing fad.

Primarily driven by Gen Z and millennial demographics – younger cohorts that would historically be at the forefront of high-energy occasions and high-volume consumption, the theme of moderation is also a key part of the ubiquitous “less but better” premiumisation mantra as well as finding relevance in the era of the cost-of-living crisis as a popular economising strategy, in the context of lower-volume/higher-value consumption patterns.

Learn more about the opportunities in no/lo alcoholic beverages in our World Market for Alcoholic Drinks report as well as the other key trends shaping the alcoholic drinks market.

 

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