The Spirited Rise of Non-alcoholic Drinks

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The global pandemic sparked a sudden rise in demand for alcoholic beverages but recent data suggests our love for liquor might finally be waning. In a 2021 Gallup survey, for example, just 60% of U.S. adults said they drink alcoholic beverages, down from 65% in 2019. What factors are driving this trend and how is it impacting the non-alcoholic beverages market? 

The Alcohol Market by the Numbers  

In 2022, revenue in the alcoholic drinks market amounted to $261.1 billion, while a 2019 survey from the National Survey on Drug Use and Health (NSDUH) found that 85.6% of people ages 18 and older had consumed alcohol at some point in their lifetime.

In the U.S., many enjoy drinking in bars, at work events, and in their backyards. Celebrations like the birth of a child, a college graduation, a job promotion, and other key milestones are often celebrated with a popped bottle of champagne. 

A 2020 study from Rand Corp found that the frequency of alcohol consumption in the U.S. increased 14% compared with before the pandemic. Further, researchers at the University of Arizona found “dramatic increases in harmful alcohol consumption” during the first six months of the pandemic.

These drinking habits certainly weren’t helped by the fact that the majority of states relaxed alcohol laws in 2020 in a bid to keep the economy afloat. As a result, it was especially easy for people to access their favorite beverages at the end of a stressful day in lockdown.

So, what’s changing now?

The Rise of Non-Alcoholic Drinks

It’s becoming more and more common to see non-alcoholic beverages on our supermarket shelves, particularly as several big-name alcohol companies look to expand their service offerings and tap into a wider market.

In 2019, for example, Diageo — a multinational alcohol company — acquired Seedlip, producer of the world’s first non-alcoholic spirit.

In the same year, David Crooch co-founded Ritual Zero Proof, the world’s first and only all-natural spirit alternative. The Silicon Review argues that Crooch’s company is doing for spirits what Impossible Burger has done for hamburgers, and what Tesla has done for cars. 

Meanwhile, just last month, Keurig Dr. Pepper announced it would be acquiring the non-alcoholic, ready-to-drink cocktail brand Atypique. Atypique offers a range of ready-to-drink cocktails, such as margaritas, gin & tonic, and mojitos.

Other brands, such as Kin and Curious Elixirs incorporate nootropics into their non-alcoholic drink options. Nootropics, or “smart drugs”, are defined as natural or synthetic substances that are designed to increase brainpower. While the supposed effects are yet to be verified by scientific research, consumers say these beverages have helped them to relax by aiding the release of serotonin.

Research from Nielsen shows that public demand for non-alcoholic beverages is growing pretty fast. The global marketing research firm revealed that, in 2021, non-alcoholic beverage sales increased by 33% to $331 million. But what are the reasons for this sudden surge in popularity?

Why Are People Turning to Non-Alcoholic Options?

For starters, people want to savor that “happy hour feeling” without the consequences of a horrible hangover. But why bother with a non-alcoholic G&T or a tequila-free Margarita when you could guzzle down a Coca-Cola or an orange juice? That’s probably because we like the ritual of sipping on something that masquerades as the real deal, a drink with the same flavorings and aroma of our favorite alcoholic drinks.

Alongside the urge to dodge a horrible Sunday morning headache, consumers are also concerned about how the consumption of alcohol is impacting their health. The so-called “sober curious” movement is especially popular with Millennials and Zoomers, who drink significantly less than their Boomer and Gen X counterparts.

And they’re not wrong to be worried. Science tells us that even moderate drinking increases the risk of high blood pressure, stroke, heart disease, cancer, and liver diseases, with almost 100,000 Americans dying of alcohol-related causes every year.  

Finally, there’s the basic fact that we like to have a choice. Many of us like to dabble in vegetarianism or veganism and we value the plentiful products that are now on offer, from alternate milks to vegan cheeses. Statistics show that most consumers buying non-alcoholic beverages aren’t fully sober. Rather, they value being able to — pardon the pun — mix it up.

As another of Ritual Zero Proof’s Co-Founders Marcus Sakey argues, “ritual isn’t an or — it’s an and. Celebrate tonight and crush your morning workout. Do a dry month and enjoy your evening cocktail. Drink traditional liquor and choose Ritual when you just want the experience. With balance, you can have more of everything.”

Image Credit: On The Run Photo / Shutterstock.com

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