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Analysis

Beyond Dry January: Alcohol moderation trends

Analysis
Beyond Dry January: Alcohol moderation trends

Health & Wellness , Industry Trends
  • Dry January reflects a time where some make the health-forward decision to take a break from alcohol—but for many, the movement is no longer restricted to just January.
  • In this piece, NIQ’s experts explore the trend of moderation in the beverage alcohol space, what and who is driving it, and where it’s headed.

Beyond Dry January: Alcohol moderation trends

Who is seeking moderation?

In 2023 alone, non-alcoholic beer, wine, and spirits topped $565M in sales1. That’s a 35% boost in dollar sales vs. the year before—but who’s leading the charge in non-alcohol consumption?

  • Gen Z (21+) only make up for 6% of beverage alcohol buyers2, and 45% say they’ve never consumed alcohol
  • As more of Gen Z approach legal drinking age, many are growing in touch with healthier lifestyles and experimenting with a sober lifestyle
  • However, consumers of all ages are tapping into the benefits of moderating alcohol consumption. For example, the 45-54 age group and those with income over 100K over index for non-alcohol consumption3

When and where are people seeking moderation?

Indicators of moderation stretch far beyond January—although sales of non-alcoholic products in the beverage alcohol space spike in the first month of the year, holidays like July 4th and New Years see a surge too:

  • These products provide a healthy, inclusive alternative for social gatherings and celebrations
  • Brick-and-mortar locations, in the form of “dry bars,” are opening nationwide—offering consumers a public setting where they can purchase handcrafted cocktails and more
  • Stores are dedicating shelf space to these alternative products, where brands like White Claw and Guinness can market alcohol-free alternatives to their popular beverages
  • E-commerce channels are also embracing this shift in consumer mindset, offering subscription services and products to curate an entire “dry bar” cart at home

Looking ahead and considerations


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Consider must-win geographies

  • Including population centers like California where bigger opportunity lies, and more resources are required

States where cannabis and CBD products grow in popularity also influence the extension of non-drinking beyond January

  • Consider how to break into these markets first and target consumers whose preference is alternative products
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Health and wellness play a large role in reduced alcohol consumption

  • Consider premiumization: How can we deliver experiences that resonate when consumers do choose to drink?
  • How do we market products that align with the health-conscious consumer? Product attributes are key here—think “low ABV,” “sugar free,” and other health-driven factors that align with a sober/sober curious lifestyle

Sources

  1. NielsenIQ Scan Off Premise Channels; Discover Integrated Beer, Wine, & Spirits database; Latest 52 weeks ending 12/30/2023 vs. year ago
  2. NielsenIQ Omnishopper, US ALC – Integrated (21+ only) Database; L52 WE 07/15/2023, Total Outlets, Total US
  3. NielsenIQ Omnishopper, Total U.S., Latest 52 weeks ended 07/15/2023