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Low and alcohol-free wines, beer and spirits have gained popularity, and research shows this isn’t a short-term trend – more consumers are reevaluating their relationship with alcohol and are switching to better-for-you options.
Younger generations – millennials and Gen Z – are drinking less alcohol overall and are looking for a “better for you” option, according to a study from BevAlc Insights, IWSR.
Low and non-alcohol sales are booming and are expected to continue growing.
When consumers are reaching for a low or non-alcoholic option, they don’t want to feel like they’re compromising, whether that’s in taste or experience.
“Just because someone isn’t indulging in alcohol (for whatever reason that might be), doesn’t mean they don’t deserve something celebratory and fun,” said Thomas Mizuno-Moore, the senior beverage manager of Aba in Austin, Texas, and Miami, in a Huffington Post article.
Whether staying in or dining out, consumers still want to socialize without the buzz.
Restaurants and bars are adding mocktails and non-alcoholic options to their menus. “Sober bars” are popping up around the U.S. where customers can sit and socialize while drinking craft mocktails.
Everything customers can order at The BANDBOX in Orlando, Florida is non-alcoholic – it’s a cocktail bar offering non-alcoholic alternatives to classic alcoholic beverages.
“These are sophisticated, adult cocktails that you’re getting in a lounge setting,” Kevin Zepf, owner of The BANDBOX told MyNews13. “We want to give you an alternative, an alternative option to another drink, and be surrounded by other non-drinkers in the same environment.”
Brands are getting on board and meeting the growing demand from consumers.
In 2019, U.S. brewery Lagunitas launched Hop, a sparkling refreshment which is positioned as an IPA-inspired hoppy refresher rather than as an alcohol-free beer. Even more recently, Lagunitas rolled out IPNA for beer lovers who crave all the beloved hops without alcohol.
Heineken launched Heineken 0.0., and in 2019, Heineken CEO Jean-François van Boxmeer said in an earnings report that “the ongoing success of Heineken (HEINY) 0.0” helped deliver the strongest growth by volume to the Heineken (HEINY) brand in over a decade, according to a CNN Business article.
“The beer market is extremely crowded,” said Caleb Bryant, senior beverage analyst for Mintel in an article with CNN Business. “If you can carve out that niche by having a non-alcoholic option, it gives you a leg up.”
And it’s not just beer – there’s John Ross with their “zero alcohol, zero sugar, zero guilt” virgin distilled botanicals, Fre Alcohol-Removed Wine, or Le Petit Chavin Merlot – all brands that launched new alcohol-free options in 2022 – and all in glass.
As consumers reach for low and no-alcohol options, glass packaging also meets their demand for health.
Consumers are choosing health over all else. In early 2022, 66% of global consumers were always or often influenced by how a product or service impacts their health and wellbeing. Consumers were influenced less by other factors, such as how familiar the product is or how the product aligns with time and money constraints. ***
Glass is made from just four simple ingredients – sand, limestone, soda ash and recycled glass. And unlike other packaging materials, there’s no concern for harmful chemicals to leach into the drink inside, as it’s non-porous and chemical free.
*** GlobalData 2022 Q2 global consumer survey
The majority of brands launching in this category know glass is the best option – of the new non-alcoholic beverages launched in 2021 and 2022, more than 60% were launched in glass.
Not only is glass the best packaging material for health, it’s also the kindest packaging material for the planet. Glass is 100% recyclable, meaning a recycled glass container can become new glass over and over again – a fact that’s important to sustainability-conscious Gen Z consumers.
“Consumers expect businesses to be more visible, active and transparent. They are choosing to boycott brands that do not mirror their values and instead, are switching to those that are taking a stand on environment and social issues,” according to the Passport article.
As demand grows for alcohol-free options, there’s one packaging material that meets the demand for health, sustainability and premiumization that consumers want and will also set these beverages apart from other offerings – glass.
