We are definitly not alone in this belief, as proven by the explosive growth over the last 5 years of the nonalcoholic beverage sector. But as this market continues to grow, a question emerges with it: can the new alcohol alternatives actually do better than the thing they're replacing?
The Remarkable Growth of the Nonalcoholic Beverage Sector: A 5-Year Journey
In the last five years, the nonalcoholic beverage sector has undergone a transformation that has reshaped the beverage industry (yes, nearly every beer company now offers a zero proof version of their products!) and captivated a diverse audience. From sparkling waters to sophisticated cocktails sans the booze, the demand for alcohol-free alternatives has surged, reflecting a broader cultural shift towards wellness and mindful consumption. If you're exploring sober living or simply interested in the burgeoning world of nonalcoholic beverages, here’s a comprehensive look at the sector’s impressive growth and the factors driving this exciting trend.
The Rise of the Nonalcoholic Beverage Trend
The nonalcoholic beverage market has seen explosive growth recently, driven by an increased focus on health, well-being, and inclusivity. According to industry reports, the United State nonalcoholic beverage market is projected to reach over $1.2 trillion by 2027, an increase of about 7% from 2019 numbers. This surge is fueled by a growing preference for healthier lifestyle choices and the desire for high-quality, alcohol-free options.
Key Drivers Behind the Growth
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Health and Wellness Movement: As more people prioritize their health and wellness, nonalcoholic beverages have become a popular choice. Drinks without alcohol offer lower calories and fewer sugars, plus the added benefit of skipping hangxiety. Consumers are increasingly turning to beverages that align with their health goals.
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Innovative Product Offerings: The innovation in nonalcoholic drinks has been nothing short of remarkable. Craft brewers and beverage companies like ours are producing sophisticated mocktails, nonalcoholic spirits, and artisanal sodas that rival traditional alcoholic options. When you start with a really quality product like our whole ingredient Simple Goodness syrups, with produce sourced directly from local farms, you can easily create a drink at home that rivals the taste and excitement of an alcoholic beverage.
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Sober Curious Movement: Belinda participated in Damp January and kept in going through all of 2024, swapping NA versions of her favorite drinks midweek and drinking alcohol only sparingly on the weekends, reducing her overall alcohol consumption consoderably. She is by far not alone. The reduction of alcohol use can be seen across all ages, but seems also to coincide with generational shifts in attitudes about vice. So too does the movement exist alongside the legalization of cannabis across the United States, resulting in a phenom the media is calling "California sober" where cannabis users reach for nonalcoholic beverages. The rise of the “sober curious” movement has played a significant role in the growth of the nonalcoholic beverage sector. This growing community has driven demand for quality nonalcoholic options that offer a similar experience to traditional alcoholic beverages.
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Inclusivity and Social Considerations: Social inclusivity is another factor driving the popularity of nonalcoholic beverages. Whether at parties, social gatherings, or public events, having a sophisticated, nonalcoholic option ensures that everyone can enjoy a sense of inclusion and celebrate without alcohol. Quality nonalcoholic drink options make it easier for individuals to enjoy the social aspects of drinking without the alcohol, which is why we advocate for inclusive hosting in every one of our hosting guides.
The Impact on the Beverage Industry
The shift towards nonalcoholic beverages is reshaping the industry landscape. Traditional alcoholic beverage companies are expanding their portfolios to include nonalcoholic versions of their products. Everyone from Corona to Seagrams has a product released or in the works. Major breweries and distilleries have launched alcohol-free beers and spirits, tapping into the growing market of consumers seeking quality alternatives. Some brands have sprung up to offer nonalcoholic products exclusively, while others like ours, non-alcoholic and sober friendly from our start in 2018, now have a growing audience to market to and must find the right way for our products to find these customers.
Here at Simple Goodness Syrups, we have learned from our sober customers what is important to them, and have responded. Whereas before we've posted a nonalc version of each recipe in our subscription box the Cocktail Farm Club, we now offer a Mocktail Farm Club box that contains only nonalcoholic recipes with our garden to glass mixers and garnishes.
Nonalcoholic bottle shops are popping up across the United States. There are subscription boxes advertised on social media that give the consumer a taste of many craft and small batch NA brands on a rotating cadence (though as makers, we will spill the tea that these brands take a laughably large percentage of the producers profit margin, resulting in an unsustainable model for everyone but the box brand, so if you like a product and want the product to succeed, purchase directly from their site whenever possible.)
Meanwhile, the rise of nonalcoholic beverage bars and specialty stores reflects the demand for dedicated "third" spaces where individuals can explore alcohol-free options. At our cafe in Wilkeson, Washington, the Simple Goodness Soda Shop, we are proud to offer a seasonal menu of zero proof cocktails, as well as farm to glass sodas, iced teas, lemonades, coffee drinks, for an engaging and enjoyable NA experience. To include anything beyond soft drinks from a seltzer gun on a bar menu was a real rarity just 10 years ago, and now bars are embracing nonalcoholic drinks as another high margin oppurtunity to make money while welcoming customers with inclusivity.
Looking Ahead: The Future of Nonalcoholic Beverages
As this change has rocked the industry, we've sat in industry circles like the Good Food Foundation shows and spoken with specialty beverage distributors, tradesmen and buyers and everyone seems to be asking the question: where does it go from here? To start, this is not a flash in the pan trend: the nonalcoholic beverage sector is poised for continued growth. As a bar owner and the creator of a sober-friendly brand, as well as a recipe developer in this space, what I hope to see in the future is for more quality products and an informed audience to come alongside this growth. I hope that the current trend of beverage companies leaning on the familiarity of packaging to allow an NA drinker to feel included, while providing a beverage that is overall a subpar experience (I am looking at you specifically, tasteless nonalc "hard" seltzers) is a temporary stop on the road to something better. While it may be too much to ask for in a capitalist society hell bent on consumption and rising stock values, I dream of a future for the NA space that tastes and feels good.
Here is where a harsh truth emerges: in a market exploding with new products, not all of those products are good.
Many are not easy to use if you don't have a background in mixing drinks and melding flavors. A great deal of them aren't actually delicious but the cans look similar to the ones we used to hold so they appeal to "fitting in" while offering no other real benefits. And unfortunately without alcohol as a preservative, many of these products have impractically short shelf lives (the real down fall of the non-alcoholic spirit is its best buy date of 3-4 months.)
As this market evolves, we also hope that brands put out products that are full of real ingredients (also looking at you, every brand that relies of cheap artificial or so called "natural flavors", a completely unregulated term.) It doesn't add up that to forgo alcohol in the name of wellness, many consumers are reaching for unnatural frankenfoods in convenient packages, but that's the power of American marketing. With increasing consumer awareness in the nonalcoholic sector, we hope for an overlap, wherein consumers take an equal interest in what else they are putting in their bodies. In this idealized version of the future every product on the shelves should taste good, feel good, and do good.
For some, quality nonalcoholic drink choices are literally life saving, and for those people, we are so happy to see this category grow. No matter what, this growth has value and we'll raise a nonalcoholic beer to toast! For the many others purchasing in this category for whom sobriety is a lifestyle and not a medical necessity, we wonder: what value is there to an nonalcoholic beverage sector that continues to mirror the traditional big brands of the alcohol industry in every respect but the buzz?
Here are the questions that remain for us. We can't wait to see the answers to how this plays out in another 5 years!
- Will people gain an increased interest and awareness in making their own drinks like sophisticated mocktail recipes at home for the first time since big soda infiltrated our coolers and fridges?
- Overtime as society overall drinks less, will we see more flexitarians or sober curious imbibers? Will lower alcohol percentage product demands also rise accordingly as tolerances change, or will this be a matter of 0 to 60, all or nothing?
- Will we see more mixing of nonalcoholic cocktails at home, similar to the home bartender resurgence of 2015, or will the sober category be mostly Ready To Drink products? What if we could have great products on the shelf for when convenience is a requirement, and then also go the extra step for ourselves at home to create a toast worthy concoction with alcohol free alternatives? The growing market of nonalcoholic syrups, bitters, and mixers are not all created equal so I encourage you to do your research on their sourcing and ingredients (I can feel a product round up coming on), but there is a world of possibility in zero proof cocktailing and dozens of products that allow you to do so mindfully. There's also a wealth of recipes online to make your own nonalcoholic drink compontents, including the ones in our upcoming drinks book to be published March 2025, Drink Your Garden.
Perhaps the answer will be one that is truly revolutionary: a healthier, more inclusive future, and a moderate society. Cheers to that!
