It’s not just O’Doul’s anymore. The nonalcoholic beverage market has burst open, with brands from Heineken (which drew attention with its 0.0 Super Bowl ad) to micro not-quite-distilleries getting in on the profits.
Uncorked: The market for nonalcoholic beverages across all categories grew 25% to $1.2 billion in 2022, according to IWSR Drinks Market Analysis data cited by The Wall Street Journal.
Many nonalcoholic spirits companies are pushing marketing beyond sobriety to overall health.
Instead, these boutique brands focus on health and lifestyle. “If you want to get up on a Thursday and go for a surf or a run or cycling, whatever you’re into, it's like knowing you can still be part of an occasion and have a drink the night before without waking up feeling rubbish,” said Mills.
Bottling up success: While category growth is good news for nonalcoholic beverage companies, the increased competition means brands need to stand out.
But consumers may be hesitant to spend in the current economic climate, especially in the US and UK. That’s why product quality is so important, according to Mills. “People do choose to spend more for something that they know has got good materials or good ingredients, whether that’s apparel or food and beverage.”
Last call: No-alcohol options are becoming part of the overall beverage market. Competition for nonalcoholic beverages is dense, but as wellness continues to boom, quality products will stand out.
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