- Brands can’t afford to sit out the shift in consumer drinks habits with new contenders entering the low and no alcohol space.
- We’ve explored the creative opportunities opened up by the shift to zero and no alcohol, especially in POS and packaging.
- Forward-thinking drinks brands can win by meeting a demand of health-conscious consumers with bold new in-store experiences.
The Low & No Club
Low and no-alcohol drinks are no longer niche products tucked away in small corners of grocery stores. Today, they are found in prime store locations, reflecting their growing demand and mainstream acceptance. It wasn't that long ago that you could count the no alcohol options on one hand, now it is a thriving industry, with consumers increasingly seeking out low and no-alcohol options for all sorts of benefits including health, lifestyle, and social reasons.
Expanding Shelf Space: More Than a Trend
Gone are the days when no alcohol tipples were limited to a single shelf. Now, entire aisles are dedicated to low-alcohol and zero-alcohol drinks. Most major retailers are not just allocating space but expanding it, realising the significant shift in consumer drinking behaviour. According to Nielsen, sales in the low and no alcohol category grew by 30% in the last year alone, proving that this isn’t just a fad or trend, but a redefined drinking culture.
I remember the days when going ‘out out’ meant you wouldn't remember the night before and feel awful the next day. These days you'll find consumers, particularly Millennials and Gen Z, are embracing mindful drinking - moderating alcohol intake without compromising on flavour or experience. In all honesty, the no alcohol options of 3+ years ago tasted like dishwater but the quality and taste has vastly improved to the point where consumers no longer have to sacrifice their experience just to avoid a hangover. And as a double whammy, brands offering both full and no-alcohol versions of their bestsellers are maximising their reach. It's a win/win!
Established Alcohol Brands Getting in on the Action
Big alcohol brands have certainly taken notice, with giants like Heineken, Diageo and Accolade Wines launching zero-alcohol versions of their most popular drinks. Heineken 0.0, Guinness 0.0 and Hardys Zero are excellent examples of how legacy brands are tapping into the rising trend, ensuring they don’t miss out on this booming market.
The Competition Heats Up: Soft Drink Brands Are Stepping In
Interestingly, it’s not just alcohol brands that are fighting for space. Non-alcoholic beverage companies are starting to move into this space too. Traditional soft drink companies can now see an opportunity in the wellness boom and are innovating with products that blur the lines between soft and alcoholic drinks.
A Balancing Act: What’s Next for the Category?
Consumers are spoilt for choice with new brands popping up left, right and centre, but they know what they want: flavour, experience, and a bit of fun without a raging hangover. As product ranges broaden and quality improves, I believe we can expect the category to only grow further, cementing the genre firmly in the industry.
Low and no-alcohol isn’t a passing trend - it’s the new norm. The challenge for brands now is to continue innovating, engaging with conscious consumers, and ensuring they’re part of this exciting, evolving landscape.
What are your thoughts on this growing sector?
