Retailers must extend and elevate their low- and no-alcohol ranges over the Christmas period to capture a larger share of young consumers’ festive spending. Gen Z’s changing social attitudes mean such drink options are viewed as desirable choices, rather than substitutes for alcoholic beverages, and over four-fifths of them1 say low- and no-alcohol drinks allow them to prioritise health & wellbeing without compromising on taste or social interactions, according to GlobalData, a leading data and analytics company.
Charlotte Chilcott, Retail Analyst at GlobalData, comments: “Christmas has traditionally been synonymous with socialising with alcoholic beverages, but for many younger consumers, the social norms around alcohol consumption are shifting. For these consumers, low- and no-alcohol drinks can be just as enjoyable as traditional alcoholic options. They are a deliberate, enjoyable choice that satisfies taste, social and wellbeing goals. While Gen Z has not abandoned alcohol altogether, retailers that can cater to both alcoholic and low- and no-alcohol preferences will win a bigger slice of seasonal sales.”
The surge in spending is being driven by improvements in quality and variety, with almost 60 % of 16-34-year-olds citing these as reasons for increasing their spending in the category.
Chilcott concludes: “Younger shoppers are responding to enhanced flavour profiles and a broader range of options in the low- and no-alcohol category. This preference provides an opportunity for retailers to offer novelty seasonal products over the Christmas period, such as low- or no-alcohol mulled wine, festive spritzes, non-alcoholic sparkling wines and spiced ciders, to deliver familiar rituals and flavours without the alcohol. Retailers should ensure these products are promoted within Christmas and party displays, alongside mixers, glassware and gifting options to encourage further spend from related categories.”
1Data is derived from GlobalData’s August 2025 monthly survey of 2,000 UK respondents
Kerry releases enhanced second-generation range of premium taste extracts for low-/no-alcohol drinks
The Kerry Botanicals Collection ZERO 2.0 next-generation range of distillates from botanical sources offers enhanced and complex flavour notes to enable the creation of better-tasting low- or no-alcohol beverages – without compromising on taste.
Kerry, one of the world’s leading taste and nutrition companies, released its Botanicals Collection ZERO 2.0, an enhanced next-generation range of high-quality, authentic botanical extracts – containing 0 % ethanol – designed specifically for global rapid-growth low- and no-alcohol beverage markets. Applications include low-/no-alcohol drinks and mocktails, regular alcoholic beverages, and almost any beverage application in which a low level of alcohol or a unique taste experience is desired.
This extensive portfolio of tastes enables drink manufacturers to maintain a low (or zero) alcohol content and permits a “0.0 %” claim. In comparison to other ethanol-free technologies, the Collection ZERO 2.0 range is more stable, with no haze, no sedimentation, and a more complex botanical taste and mouthfeel.
The range of possible distillates in this new 2.0 generation includes fruit; floral; and spice and brown tonalities such as passionfruit, rosebud, elderflower, caraway, black pepper, cumin, cocoa and coffee.
With the Botanicals Collection ZERO 2.0, beverage product developers now have an extensive range of potential tastes on their creative palettes that meet emerging clean-label and authentic-quality requirements. The result: a premium drinking experience for those seeking to moderate their alcohol consumption.
Francis De Campos Ferreira, Global Taste Portfolio Director for Selected Extracts at Kerry, commented on the new botanical collection release: “Taste is extremely important to all consumers of low- and no-alcohol beverages. Our exciting second-generation Kerry Botanicals Collection ZERO 2.0 range delivers not only the fresh notes from the first generation but also now more complex flavours that remind us of those found in traditional alcoholic beverages. Another important consumer concern is that these types of drinks be naturally sourced, so it’s important to note that the ZERO 2.0 product range is created using all-natural, sustainable botanical sources.”
The new generation uses a proprietary extraction and distillation processing technique, delivering significant benefits (such as being preservative-free) while developing intense and amazingly complex aromatic profiles. ZERO 2.0 complements and expands Kerry’s first-generation Collection ZERO, which was announced in 2020. Furthermore, this newly released range offers more stability with no haze or sedimentation, and delivers a unique, complex and differentiated botanical taste profile.
Adds Mr De Campos Ferreira: “There is a rapidly growing global trend to moderate and control alcohol intake, and consumers are seeking authentic-tasting beverage options that address this desire. This has resulted in enormous growth in the global market for these kinds of beverages that is expected to continue for years. Producers able to offer tasty and healthier upscale beverage choices will see a significant and growing market opportunity in the years to come.”
“Due mainly to the fact that many no-alcohol drinks (like mocktails) resemble juices, consumer expectations are currently not being met by the prevailing no-alcohol options. Increasingly, consumers want the upscale experience of the glass, ice, and taste – simply without the alcohol content. The Kerry Botanicals Collection ZERO 2.0 portfolio delivers a premium drink that tastes great.”
Kerry’s extensive expertise and experience in natural extraction also fosters innovative “fusion distillates” based on a proprietary capability to blend natural botanicals (leaves, flowers, seeds, etc.), and then magnify taste by running a distillate following a period of slow maturation. This produces tailored extracts or blends that can be made to order to suit specific local and regional tastes and other requirements.
