The demand for low- and no-alcohol drinks is on the rise as consumers increasingly seek healthier alternatives and choose sobriety to better enjoy their social moments. The increase in demand for these beverages during the Christmas season is particularly noteworthy, as it highlights the growing acceptance in a time when drinking is considered part of culture. Aligning with these new developments, a survey showed that 45 % of consumers sometimes or regularly drink low or no-alcohol beverages^*. As such, the alcohol avoidance trend is expected to continue in the UK during the festive season, according to GlobalData, a leading data and analytics company.

According to GlobalData, the “alcohol avoidance trend” is expected to drive the UK non-alcoholic beverage market over a £500 million category in 2024, representing a double-digit growth from the previous year. The no- and low-alcohol beer market in the UK is projected to grow by 15 %.

George Shaw, Beverage Analyst at GlobalData, comments: “The moderation movement has led to the creation of alcohol-free alternatives and increased competition in the soft beverage market. In the UK, Almave Bianco, introduced by Lewis Hamilton’s Almave, represents a significant step in the non-alcoholic spirits market of growing demand for high-quality non-alcoholic beverages that mimic traditional spirits.

“The association with Lewis Hamilton brings aspirational branding and credibility, resonating with fans of the sport and lifestyle. This targets health-conscious consumers and those embracing the sober-curious movement, especially Gen Z and Millennials seeking alcohol-free alternatives for social occasions.”

Cornish craft brewer Firebrand introduced Little Wave, its first non-alcoholic lager, designed to deliver a smooth, clean profile while maintaining the quality and craft part of its traditional offerings. This appeals to consumers seeking alternatives for social drinking while reducing their alcohol intake, aligning with the mindful drinking trend.

Shaw adds: “According to GlobalData Q3 UK Consumer Survey^*, it is evident that the demand for low and no-alcohol drinks is prominent. This indicates a significant shift in consumer preferences towards healthier options. The change is likely driven by a combination of factors, including health consciousness, the desire for more inclusive social experiences, and the availability of high-quality options in the market.”

Tesco has also reported strong performance in the no- and low-alcohol beers segment, with a 20 % year-on-year increase in sales of those drinks in multi-pack sizes and a 15 % surge in demand during the four weeks leading up to Christmas.

According to the GlobalData Q3 UK Consumer Survey, 77 % of UK consumers consider how a product or service impacts their health and well-being to be of somewhat, often, or always influence. By incorporating this insight into their marketing strategies and product development, alcohol brands can better position themselves to meet the evolving demands of consumers and capitalize on the growing market for low and no-alcohol drinks.

Shaw concludes: “The rise in demand for low and no-alcohol drinks is a significant trend that alcohol brands cannot ignore. With consumers increasingly opting for healthier alternatives and prioritizing their health and wellbeing, it is crucial for brands to adapt and provide options that cater to these changing preferences.”

^*GlobalData’s UK Q3 2024 Consumer Survey was conducted with 505 participants

Since the onset of the COVID-19 pandemic, functional drinks have been gaining momentum, with nootropics, immunomodulators, and botanics becoming household terms. Adaptogens, which claim to address rising concerns of stress, anxiety, and balance restoration, have been gaining ground rapidly. In addition, these ingredients help address the challenge of providing consumers with value for money by maintaining quality at steady prices. Against this backdrop, adaptogens are set to become mainstream ingredients, says GlobalData, a leading data and analytics company.

Bokkala Parthasaradhi Reddy, Lead Consumer Analyst at GlobalData, comments: “Over the last few years, a health-oriented approach to life has gained a new meaning. Globally, an increasing number of consumers are seeking products that will help them address specific aspects of their overall wellness, such as stress management, sufficient rest, anxiety-easing, and embracing sobriety or mindful drinking. As a result, they are reaching out for goods with added functionalities, active ingredients, or clearly stated health benefits. With their neuroprotective, anti-fatigue, and anti-depressive properties, adaptogens provide multiple benefits, such as boosting immunity, easing anxiety, and relieving stress, which are some of the major consumer focus areas following the pandemic.”

Deepak Nautiyal, Consumer and Retail Commercial Director, APAC and Middle East at GlobalData, notes; “Adaptogens are the new functional ingredients that have found a foothold in non-alcoholic drinks. They can be plant-based or synthetic and can be easily added to a multitude of drinks, such as carbonates, juice, and tea/coffee without altering the flavor or taste profile of these drinks. One of the primary advantages of adaptogens is the ease of use, as they can be consumed as dietary supplement capsules, in teas, or added to non-alcoholic drinks such as carbonates and juice. However, adaptogens cannot be termed as exclusive ingredients as many of them provide the benefits of nootropics and immunomodulators and the other way around.”

Reddy adds: “Some of the common plant-based adaptogens include Panax ginseng, Rhodiola crenulata, and Schisandra chinensis, which have been used to control or manage multiple conditions, including blood sugar control, brain health, fatigue, anxiety, depression, stress, liver diseases, and menopause symptoms. Ginseng is the most popular among these adaptogens and is widely used for its immunity-boosting attribute. Meanwhile, synthetic adaptogens, known as “actoprotectors” have similar functions and enhance body stability without increasing oxygen consumption or heat production, boosting mental and physical resistance, and increasing blood flow. However, these attributes, which enhance the appeal of synthetic adaptogens, also make them unsuitable for consumption by athletes.”

Nautiyal continues: “In addition to their health benefits, adaptogens also help in engaging consumer interest. With the majority of consumers reeling from the impact of high inflation, value for money has emerged as a key theme in consumer purchases. With rising input costs, manufacturers are being forced to provide more value to the consumer’s dollar. This is reinforced by a GlobalData consumer survey^*, wherein 27 % of consumers perceive low price/cheap good value for money, and an equal number of respondents perceive high-quality products/ingredients as value for money.”

Reddy observes: “The addition of adaptogens will help to attract consumers who prefer high-quality ingredients. Moreover, these consumers will be inclined to pay more for proven health benefits, as evident in 84 % and 80 % of respondents in the same survey who opined “good for physical fitness/health” and “good for mental health” as an essential or nice to have features in their purchase decisions.”

Nautiyal concludes: “The benefits of adaptogens, which include managing stress and anxiety, are among the most sought-after features among consumers. In non-alcoholic drinks, adaptogens are being used in beverages positioned as alcohol substitutes, and natural energy drinks or night-time drinks that are claimed to improve the quality of sleep and rest, and their adoption is expanding. However, adaptogens are new to the market, and the potential impact of long-term use has not been proven. For instance, dosage control and the potential reactions to medications are still being studied. Hence, despite the significant benefits, adaptogens cannot be a universal panacea for addressing stress and anxiety. Manufacturers will have to address these concerns to push more brands to adaptogens.”

^*GlobalData 2023 Q4 Consumer Survey – Asia & Australasia, with 6,163 respondents

Years of research led White Claw Seltzer Works to develop the first authentic-tasting, non-alcoholic drink with the elusive and satisfying complexity of a “real drink”

White Claw^®, which changed the way adults drink when it pioneered the innovative, refreshing Hard Seltzer beverage category, is now redefining drinking itself with the launch of an entirely new beverage category: White Claw^™ 0 % Alcohol. It’s a one-of-a-kind premium seltzer for adults, with a depth of complexity that tastes, feels, and looks like no other non-alcoholic drink.

Alcohol gives adult drinks a distinct taste and flavor complexity that no one has been able to replicate—until now. When alcohol is stripped out of alcoholic beverages, like with non-alcoholic beer, then taste, flavour, and the complexity that alcohol provides goes with it. For adults seeking the same depth of flavour that they get in alcoholic drinks, still or sparking seltzers with added flavour are no substitute—they’re bland liquids that fall flat by comparison to real drinks.

After years of research and breakthroughs including development of our proprietary plant-based sweetener technology, White Claw has found a unique way to make beverages that have all the taste and complexity you expect in an alcoholic beverage, made non-alcoholic from the start, so it’s not a lesser version of anything, it’s more.

As a leading-edge beverage company with a culture of innovation, White Claw Seltzer Works spent decades researching how taste and alcohol work together. Our investment resulted in patents and proprietary beverage technologies. Our new-to-world approach led us to develop our own iconic flavours found in no other drinks. As a result, White Claw® Hard Seltzer pioneered the most significant new alcohol category since prohibition. The craft and science that went into White Claw Hard Seltzer led us to create White Claw 0 % Alcohol, a fundamentally new kind of drink for every kind of adult drinker that could only come from White Claw.

Created with ultra-refined seltzer, White Claw 0 % Alcohol not only combines iconic White Claw flavours with elevated new secondary beverage alcohol drinks notes, but uniquely adds hydrating electrolytes—half as many as you’d find in some leading sports drinks, with only a fraction of the sugar and calories – 15 per 12 oz. can. It’s a radically new way to drink.

White Claw 0 % Alcohol arrives at a time when consumer drinking culture, once synonymous with drinking alcohol, has fundamentally changed. A new survey from White Claw found that the majority of people who drink alcohol (69 %), Gen Z (81 %), and Millennials (78 %) are interested in exploring a “sober curious” or “damp” lifestyle. However, 63 % of consumers say feelings of expectations and pressure from others, along with the fear of being judged, are making it challenging for them to avoid drinking alcohol during drinking occasions. It’s a gap for consumers that no one has addressed until now.

White Claw 0 % Alcohol is a way to say “yes” to more drinking invitations and enjoy more adult drinking get-togethers without pressure to fit in. Whether you’re wanting the complexity of a real drinking experience where alcoholic beverages might not be appropriate—like a business lunch—or pacing yourself during an afternoon or night out with friends, or taking a day, a week, or a month off from alcohol, White Claw 0 % Alcohol provides a delicious, low-calorie, hydrating non-alcoholic choice that doesn’t make you seem like an outsider. The majority of consumers agree that non-alcoholic drink options help them feel more confident in social situations where they didn’t want to drink alcohol (57 %), make it easier for everyone to enjoy social occasions together (74 %), and help them prioritise their physical health while not missing out on social opportunities (67 %).

“The industry is ripe for disruption as demand for flavourful, non-alcoholic drinks is on the rise, but current options like excessively sweet mocktails, bland waters, and near-beers are disconnected from what today’s adult drinkers want. White Claw 0 % Alcohol paves the way for an entirely new adult beverage,” said Phil Rosse, President, Mark Anthony Brands Inc. “Our newest breakthrough completely reimagines the idea of drinking by delivering the first ever elevated non-alcoholic choice with the complex taste and feel of a real drink that only White Claw can deliver.”

The survey by White Claw found that the majority (64 %) of consumers wish there were better non-alcoholic options available. In fact, consumers would be more likely to choose non-alcoholic drinks if they have flavors they like (83 %), were from brands they know (72 %), had electrolytes (72 %), and were low in sugar (71 %).

“White Claw 0 % Alcohol is made non-alcoholic from the start, so it’s not a lesser version of anything, it’s more. The result is a bold, refreshing choice that tastes like no other adult drink available,” added Rosse. “White Claw 0 % Alcohol is a drink for all drinkers, that empowers you to say ‘yes’ to more adult drinking occasions. We’re proud to continue to bring new news and meaningful innovations that make a difference in people’s lives.”

White Claw 0 % Alcohol features four bold flavours for a delicious, refreshing tasting adult drink with 2 grams of sugar and 15 calories per 12 oz. can and will be available in variety 12-packs and single flavour 6-packs:

• White Claw 0 % Non-Alcoholic Premium Seltzer Black Cherry Cranberry: The perfect balance of natural ripe Black Cherry and a hint of tart Cranberry flavour give this an extremely refreshing depth of flavour. Available in 12-ounce slim cans included in variety 12-packs and single flavour 6-packs.
• White Claw 0 % Non-Alcoholic Premium Seltzer Mango Passion Fruit: Natural mango and hint of tropical passion fruit perfectly complement each other to deliver an authentic and refreshing taste. Available in 12-ounce slim cans included in variety 12-packs and single flavour 6-packs.
• White Claw 0 % Non-Alcoholic Premium Seltzer Peach Orange Blossom: Tastes just like a ripe peach picked off a tree with just a hint of floral orange blossom, creating an amazing, uniquely refreshing sensation like no other. Available in 12-ounce slim cans included in variety 12-packs.
• White Claw 0 % Non-Alcoholic Premium Seltzer Lime Yuzu: Exquisite natural juicy Lime comes to the fore, accented by a hint of zesty yuzu citrus complexity for unmatched taste and refreshment. Available in 12-ounce slim cans included in variety 12-packs.

Just in time for Dry (or Damp) January, which the majority (62 %) of people who drink alcohol are interested in participating in according to the survey by White Claw, White Claw 0 % Alcohol will begin rolling out in the U.S. on January 1, 2024.

Survey Methodology
The survey was conducted online within the United States by Edelman Data and Intelligence on behalf of White Claw from November 1 – November 13, 2023, among a nationally representative sample of 1,048 Americans ages 21 and up, with additional oversamples to total 1,010 Gen Z (ages 21 – 26), 1,005 Millennials (27 – 42), 943 Sober Curious Gen Z (ages 21 – 26) and 960 Sober Curious Millennials (27 – 42). Sober Curious consumers are defined as those who drink alcohol, but exhibit behaviors or general interest in mindful drinking and non-alcoholic beverages. The main nationally representative sample of 1,048 has a margin of error of ± 3.0 % at the 95 % confidence level.

The Danish aroma company, EvodiaBio, secured 6.4 million dollars in a recent capital raise. Their goal is to become a global industry leader in sustainable aroma production for the food and beverage industry.

EvodiaBio recently introduced a ground-breaking technology platform that uses precision fermentation to produce sustainable aromas for the food and beverage industry. Now, the ambitious company has secured 45 million Danish kroner in additional funding, equaling approximately USD 6.4 million.

EvodiaBio, founded just one-and-a-half-years ago, received 14 million kroner in financial support from the BioInnovation Institute, a Danish accelerator funded by the Novo Nordisk Foundation. The remaining 31 million kroner stem from several international industry players, including the German flavour house Symrise that steps in as strategic investor, and Nordic Foodtech VC is lead investor.

Jarne Elleholm, co-founder and chairman of EvodiaBio, sees the capital raise as a crucial step in reaching the company’s soaring ambitions. “Our vision is to create a sustainable, global company within the development, production, and commercialisation of natural aromatic substances and this funding is our opportunity to realise this vision. The funding was made possible by a strong support from the BioInnovation Institute and by the great progress we have made during our only one-and-a-half-year lifetime”, says Jarne Elleholm.

Non-alcoholic beer is the first segment that EvodiaBio will address, says Jarne Elleholm, as getting the taste of the beer right has been a major challenge for the brewing industry. The company’s newly developed aroma blend, called Yops, can improve the taste of non-alcoholic beer, and serves as a sustainable alternative to cultivated aroma hops. In the long term, the bio-industrial company will develop aromas for other beverages, perfume, and a range of other segments.

EvodiaBio’s monoterpenoid aromas are produced using yeast cells that secrete the individual aroma components and are then combined to mimic the aroma profiles of different hops. The result is a natural, pure, and sustainable product. The technology has been developed after years of research by the scientific co-founders, Prof. Sotirios Kampranis, Dr. Simon Dusséaux and Dr. Victor Forman. EvodiaBio’s approach surpasses all other methods and enables, for the first time, a cost-effective and sustainable biotechnological production of the volatile aroma molecules from hops. Using EvodiaBio’s solution, the brewer avoids depleting limited plant resources, while water and CO₂ emissions are reduced by more than 90 percent.

Next step in EvodiaBio’s far-reaching plans is the establishment of the company’s own offices, laboratories, and pilot-production in Denmark. They are now preparing for the launch of Yops in 2023, where they also expect an increase in staff.

The team behind Schilling Cider, a leading cider producer in the Pacific Northwest in the US, announced the launch of Vida Maté, a new line of low-calorie, non-alcoholic yerba maté beverages that seek to transform the caffeine experience. Crafted to elevate the traditional South American “super beverage” with the craft quality of the Pacific Northwest, Vida Maté is made with real fruit juice and a proprietary blend of adaptogens. The result is a refreshing, delicious alternative to sugary coffee drinks and artificially flavoured caffeine-in-a-can. With operations based in Seattle and Portland, the Schilling team is excited to debut this new plant-powered pick-me-up, made exclusively with naturally occurring caffeine.

Vida Maté fits the gluten-free and vegan-friendly lifestyle, offering a boost in vitality and focus through a functional blend of adaptogens: Vitamin B12 for a power boost, L-Theanine for focus, and GABA for stress relief combine to ensure a clean, jitter-free delivery of caffeine with no unpleasant crashes.

Launching with three flavours – Lemon Mint, Mango Lime, and Blackberry Lemonade – Vida Maté is available in 16 oz. cans at thousands of grocery, convenience, and natural food stores across the Pacific Northwest, since March 1, 2022.

“Innovating in healthful, refreshing beverages is our calling,” says Colin Schilling, CEO and co-Founder of Schilling Cider. “This starts with the same quality and techniques we bring to crafting our fresh-pressed apple cider. It’s exciting to push those boundaries into the yerba maté segment. Consumers are demanding delicious, healthier options made right here in their backyard, and we can’t wait to share Vida Maté with our community.”

While other canned yerba maté drinks depend on a formula that involves non-yerba maté derived and synthetically produced caffeine, Vida Maté’s caffeine occurs naturally and comes 100 % from yerba maté. And because Vida Maté is made from real fruit juice, it’s not overly sweet and it’s lower in calories and sugar.

The team at Schilling has long enjoyed traditional yerba maté drinks, before launching their own. Yerba maté is a plant indigenous to South America. The leaves and twigs are dried, dried over a fire, and then steeped in hot water for an invigorating tea.

On 3 November 2020, Coca-Cola European Partners announced it has entered into binding agreements to acquire Coca-Cola Amatil Limited (CCL), one of the largest bottlers and distributors of ready-to-drink non alcoholic and alcoholic beverages and coffee in the Asia Pacific region.

“This is a fantastic opportunity to bring together two of the world’s best bottlers to drive faster and more sustainable growth. Since the creation of CCEP four years ago, we have proven our ability to create value through expansion and integration. Now is the right time to move forward by taking on these great franchises and markets.

“The strategic rationale behind this transaction is compelling, solidifying our position as the largest Coca-Cola bottler by revenue. I am eager to apply our proven formula in Western Europe to Coca-Cola Amatil’s markets, including leadership in areas such as revenue growth management, in-market execution, digital and sustainability. However, I am equally excited and genuinely convinced that there will be many more opportunities as we move forward together with speed, scale, excellent people and a richer, more diverse culture.

“This larger platform will unlock enhanced value for our shareholders, all underpinned by an even stronger and more aligned strategic partnership with The Coca-Cola Company and our other brand partners. We look forward to executing on the ambitious growth plans ahead of us, as we build on the best of who we are and create a very exciting future together.”

Damian Gammell
CEO, Coca-Cola European Partners

The UK non-alcoholic spirits category has grown to be worth £37m in 2019, up 506 % versus 2014, and is forecast to more than double in size again over the next five years, according to GlobalData, a leading data and analytics company.

David Harris, Consumer Analyst at GlobalData, says: “Younger generations are drinking less, with Gen-Z only strengthening this trend as they reach legal drinking age. This is hardly ground-breaking news. Adult soft drinks, premium juices and a growing range of high-quality non-alcoholic beers are all targeted at this demographic, in addition to older consumers who simply want to moderate their alcohol consumption.”

So what about consumers who don’t want a non-alcoholic beer, but still want an ‘alcohol-alike’ beverage? This may be at a party, on a night out, or at home when everyone else is enjoying their gin and tonics. This is the specific opportunity non-alcoholic spirits are targeting. Where craft beers targeted consumers turned off by mainstream German and US lager brands, non-alcoholic spirits aim to engage consumers who want to feel part of the party, but who don’t want a sore head in the morning.

Harris adds: “Talking of craft beer, what is notable is how the rise of non-alcoholic spirits mirrors the rise of craft beer, arguably the beverage trend of the last decade. With laser targeting of a specific need, from a specific demographic, there are clear similarities between non-alcoholic spirits and craft beer.

“Both target younger legal age consumers. Both target consumers who are either tired of, or have no interest in, the mainstream variant of the offering, and both use flashy, stylized and no-nonsense packaging to engage with their audience.”

Excited with the prospect, major players in spirits are increasingly looking to get involved, with William Grant and Sons launching their Atopia range, Pernod-Ricard launching Celtic Soul, as well as the Diageo-funded Seedlip, which has now expanded out of the UK and into overseas markets.

Retailers also seem to agree that this is a category to watch too, with Tesco, Lidl, Asda, and more major UK retailers all stocking at least one non-alcoholic spirit.

Harris concludes: “While this may not be the next craft beer, the opportunity is certainly there, and both brands and retailers agree that this in an opportunity which is too big to miss.

As this year saw the rise of the sober-curiousness trend, non-alcoholic drinks such as wine waters have a great market potential, due to their natural antioxidants content and their functionality. Wine water, either still or sparkling, is promoted as healthy and naturally functional, with a distinctive wine taste. According to GlobalData’s Q3 2019 global consumer survey, 92 % of surveyed consumers consider that eating healthily creates a feeling of wellness and 60 % say they believe antioxidants have a positive impact on their health.

Ana-Maria Iscru, Consumer Analyst at GlobalData, explains: “A new water concept, wine water is different from alcoholic seltzers, non-alcoholic wine and fruit flavored waters, in that it does not contain alcohol but does have a wine-infused flavor, for a more sophisticated taste. The wine essence water from Wine Water Ltd., for instance, was released last year and has already sparked interest. The brand taps into a few consumer trends, namely the absence of alcohol, low sugar content, low calories and an elegant glass bottle packaging instead of plastic.”

Another slightly similar brand is Napa Hills, flavored water ‘with red wine’s natural antioxidants’, but without a wine flavour. PepsiCo also gave the trend a try, releasing a limited-edition rosé-flavored sparkling cola, which was served at the first edition of the BravoCon in November. Moreover, Walmart recently introduced a rosé wine drink enhancer, but it is not expected to come too close to the wine taste.

Iscru adds: “Wine waters are seen as much lower in calories and sugar than actual wine, enough to respond to the growing health & wellness demands. All of this while not ditching the classic wine taste that a lot of people love.

“The category is yet to grow, as there is not a large variety of wine waters, but it has potential in the way it is presenting itself: natural, sustainable and tasty. However, until wine water as a category grows globally, for now consumers are just left wanting more.”

Diageo announced the acquisition of a significant majority shareholding in Seedlip, the world’s first distilled non-alcoholic spirits brand. Seedlip was launched by Ben Branson in 2015 to solve the dilemma of ‘what to drink when you’re not drinking^®’. Ben set out to change the way the world drinks and continue his family’s 320-year-old farming legacy. Ben will remain actively involved as a shareholder and director and will work with the Seedlip team and Diageo to continue to support Seedlip’s future success.

In June 2016, Seedlip announced a minority investment from the Diageo-backed accelerator programme Distill Ventures. Independently run, Distill Ventures receives funding from Diageo to support entrepreneurs as they launch and grow innovative drinks brands. Seedlip is the first non- alcoholic brand acquired by Diageo through Distill Ventures.

In the last three and a half years, Seedlip has grown from Ben’s kitchen to a presence in more than 25 countries. Seedlip’s three variants (Spice 94, Garden 108 and Grove 42) are stocked in over 7,500 of the world’s best bars, restaurants, hotels and retailers, including the majority of the world’s 50 best cocktail bars and over 300 Michelin Star restaurants.

The industry is being disrupted by significant trends with consumers, products, brands, and distribution. As niche players eat up more of the market share, established companies must evolve to stay competitive.

From the traditional powerhouses to new entrepreneurial start-ups, non-alcoholic beverage companies are operating in a whole new world as the industry is undergoing monumental shifts. For example, with an eye on health-conscious consumers, PepsiCo purchased the sparkling water company SodaStream in 2018, and after Coca-Cola moved into the tea market a decade ago with its organic, fair-trade Honest Tea subsidiary, the company is dipping its toe in the rapidly growing coffee segment by buying Costa Coffee in 2019. Meanwhile, new entrant Boxed Water is nudging plastic bottles off the shelves with its paper-based packaging.

With today’s consumers thirsty for healthy and eco-friendly options, massive changes are coming. …

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