Insights for the Non-Alcohol Category
With a market value exceeding half a billion dollars, in the off-premise channels that NIQ tracks, and a robust 31% growth rate, Non-Alcohol Beer, Wine, and Spirits are now a staple during all major drinking holidays, especially the 4th of July and year-end celebrations in the US. And we are seeing similar trends in Canada, where sales of non-alcohol surged to $199 million between June 2023 and June 2024, up an impressive 24%.
Non-Alcohol products appeal to consumers through their flavors and opportunities to share in the social experience of drinking with others. Due to the high affiliation with every alcohol category, Non-Alcohol interacts at high levels across most Beer, Wine, and Spirits categories.
Over 93% of non-alcohol buyers are also purchasing alcohol containing Beer, Wine, and Spirits, meaning these buyers are highly engaged with Beverage Alcohol, resulting in providing more value to total Alcohol. In comparison to Beer, Wine, and Spirits categories, non-alcohol loyalty is relatively low, with room to grow, like last year. Lower loyalty indicates that non-alcohol is a part of the broader repertoire of the Alcohol consumer. Around 1 in 4 of all On Premise visitors have tried non-alcohol alternatives. When deciding on non-alcohol products, nearly half of non-alcohol drinkers have a mixture of alcoholic and non-alcoholic drinks during their visits to the On Premise, with more than half avoiding alcoholic options completely. Understanding consumer motivations behind choices, moderation, and opportunities for non-alcohol products is key to the success of brands in the On and Off Premise.
Telling the Commercial Insights story:
There are some incredible brand stories to tell in non-alcohol. Macor insights can help support the brand sell-in:
- Growth rate at 30% is incredible and beyond most segments
- All channels can benefit from NA increase in retail space
- NA is in more shopper portfolios, strengthening brands
- Consumer trend towards moderation is very real
- Most demographics care about wellness, including Boomers / Gen Z
- NA gets significant impulse purchase capability
- 93% of non-alcohol is consumed by those with BevAl in their portfolio
- Innovation and functional products can thrive in non-alcohol
