U.S. Beverage Brands Taking Advantage of Non-Alcoholic Trends

People are trying to live healthy lives, which fits well with the message that non-alcoholic drinks are better for you. Four out of five people who buy non-alcoholic drinks said they do so for health reasons. In one of our qualitative interviews, David, a Californian who buys non-alcoholic beer, said, "The main reason I drink non-alcoholic drinks and more specifically non-alcoholic beer is because my family has a history of heart disease." "I looked for non-alcoholic beer, and it tasted just as good as the brands I liked and had been drinking before."

David continued to talk about the benefits of drinking non-alcoholic drinks

"Now that I'm drinking non-alcoholic drinks, I don't have to worry about being out with friends, getting home safely after that party, and getting in the car." That is what I think is a good middle ground. You can still enjoy the great taste of beer without the booze. One-third of the people interviewed (more than one hundred buyers) said that non-alcoholic drinks let them go to social events without having to worry about getting there.Others use the drinks to stay sober while having fun with other people. "When I go to social events, I choose drinks without alcohol." A mother from the Midwest who is 41 years old said, "I like having something that looks like alcohol so people don't ask me why I'm not drinking." If a brand wants to get into this market, it should use its marketing and advertising to stress these benefits.Why should drink makers move into the non-alcoholic market?Non-alcoholic drinks are better for brands in more ways than one. New brands have clearly benefited the most from the rise in popularity of non-alcoholic drinks. But benefits can also be found for well-known names. Big beer companies like Budweiser and Heineken can make their portfolios more stable in two ways. The first way is by getting more products into stores. The second way is by making usage last longer.Why should drink makers move into the non-alcoholic market?Non-alcoholic drinks are better for brands in more ways than one. New brands have clearly benefited the most from the rise in popularity of non-alcoholic drinks. But benefits can also be found for well-known names. Big beer companies like Budweiser and Heineken can make their portfolios more stable in two ways. The first way is by getting more products into stores. The second way is by making usage last longer.

Many adult beverage names can't be sold in all stores because of local and state laws and rules.

But brands can reach more people by making non-alcoholic versions, which are easy to find in natural foods stores' regular beverage aisles or can be ordered online and delivered to your house. Numerator's data on purchases shows that new non-alcoholic drink buyers are most likely to come from Amazon (77% of the time), Sprouts (53% of the time), and Whole Foods (16%).Non-alcoholic drinks are helping to make up for the slow times for alcoholic drinks while also making busy times longer. Dry January began in the UK in 2012 as a way to encourage people to drink less booze. It has since gained popularity. Number found that in November 2023, 38% of US shoppers planned to take part in Dry January 2024. People can now enjoy beers and wines without any of the alcohol thanks to the non-alcoholic beverage group.On the other hand, non-alcoholic drinks have made people drink more beer and wine-like goods during the summer. Several people who were interviewed said that these drinks are a good way to cool off and have something tasty. Not only that, but non-alcoholic drinks have mostly been net new for the alcohol group as a whole. Sixty-four percent (64%) of the growth in non-alcoholic drinks in 2023 came from people buying them to go with their alcoholic drinks instead of replacing them.What non-alcoholic drinks are popular right now?

A line of non-alcoholic drinks called Athletic Brewing is becoming a big hit with wealthy Millennials. You can find Athletic Brewing in more than 2.6 million homes in the US. It was started by Bill Shufelt and John Walker. The brand has had a lot of success, with more than a million people adopting it by 2023.Who is making this happen? Athletic Brewing has built a strong customer base among wealthy Millennials, who are one of the fastest-growing groups in the business. This group of Millennials, whose household income is over $125,000, is projected to add $51 million to growth in 2024. This comes after sales went up seven times from 2019 to 2023. Penn's Best and Samuel Adams are two other names that are growing with wealthy Millennials. In the non-alcoholic beverage market, both names have seen big increases in their market shares.

Athletic Brewing also stays up to date with changes in the business by using digital tools and promoting social causes.

Before Dry January, the brand improved its app so that users could keep track of how much booze they were drinking, which encouraged them to drink more mindfully. In 2024, 10% of people in the US are expected to start using mobile tools to keep track of their physical and mental health.What does the future hold for the non-alcoholic drink business?At the moment, there is a lot of room for growth in non-alcoholic drinks. One area of growth is reaching more people in more places and through more channels. Not only have non-alcoholic drinks made big steps forward in many parts of the US, but they're also expected to add another $28 million to the category in the next year in the south and mid-Atlantic areas. Distributing the product in more places, like clubs, bars, hotels, and airplanes, could help it grow and become more popular.aPeople are trying to live healthy lives, which fits well with the message that non-alcoholic drinks are better for you. Four out of five people who buy non-alcoholic drinks said they do so for health reasons. In one of our qualitative interviews, David, a Californian who buys non-alcoholic beer, said, "The main reason I drink non-alcoholic drinks and more specifically non-alcoholic beer is because my family has a history of heart disease." "I looked for non-alcoholic beer, and it tasted just as good as the brands I liked and had been drinking before."David continued to talk about the benefits of drinking non-alcoholic drinks: "Now that I'm drinking non-alcoholic drinks, I don't have to worry about being out with friends, getting home safely after that party, and getting in the car." That is what I think is a good middle ground. You can still enjoy the great taste of beer without the booze. One-third of the people interviewed (more than one hundred buyers) said that non-alcoholic drinks let them go to social events without having to worry about getting there.Others use the drinks to stay sober while having fun with other people. "When I go to social events, I choose drinks without alcohol." A mother from the Midwest who is 41 years old said, "I like having something that looks like alcohol so people don't ask me why I'm not drinking." If a brand wants to get into this market, it should use its marketing and advertising to stress these benefits.