Once a niche category, the non-alcoholic drinks market is now a booming space for innovation and consumer excitement. From health-consciousness to consumers reducing their alcohol intake, more people are reaching for sober curious drink options at social gatherings, during meals, and throughout their daily routines.
While uneven inflationary recovery has resulted in slowed down growth of the non-alcoholic drinks market, current and projected growth outlooks remain steady, most notably for beverages that provide functionality and support increasingly active and busy consumer lifestyles.
Growing an estimated 10% in 2024, the non-alcoholic beverages industry has experienced many shifts and changes. Brands need to understand emerging non-alcoholic beverage trends to capture a rapidly growing audience. How is health consciousness influencing purchase decisions? Why are better-for-you (BFY) products gaining momentum? And how can I strategically position my business to meet consumer demands? Answer these and many more questions with Mintel’s US non-alcoholic beverage market analysis.
The Rise of Non-Alcoholic Beverages
Demand for non-alcoholic beverages is surging across the United States, fueled by several factors:
- Health Prioritization: US Americans are increasingly prioritizing their health and are choosing drinks with functional benefits, natural ingredients, and lower sugar content.
- Cultural Shifts: The sober curious movement is changing the social perception of sobriety, making non-alcoholic drinks more socially acceptable and desirable.
- Convenience and Innovation: Innovations in flavor, packaging, and ingredients are enhancing the drinking experience, making it easier for consumers to try and adopt non-alcoholic options.
Non-Alcoholic Drink Trends are Shaping the Beverage Industry
The influence of health and wellness across beverage segments
As US consumers are prioritizing their health and wellbeing, demand for non-alcoholic drinks is increasing. Many are proactively seeking beverages that positively impact their health across a number of segments.
The sober curious movement is gaining traction, with consumers of all ages choosing to moderate their alcohol consumption or quit entirely: 30% of US consumers are actively reducing their alcohol intake.
This shift towards sober curious drinks is motivated by:
- A desire to avoid the negative health impacts of alcohol.
- A growing understanding of the holistic benefits of living alcohol-free, including better sleep, improved focus, and balanced mental health.
This creates opportunities for brands to continually capture occasions once characterized by the consumption of alcohol. Soda and tea are the leading alcohol alternatives, but other options are poised for growth as non-alcoholic beverage trends in the US continue to gain traction. Non-alcoholic beverages that fit within better-for-you (BFY) trends, such as low-sugar or functional options (hydration-focused drinks or those with natural energy boosters like electrolytes), are becoming more popular.
Consumer perception of carbonated soft drinks and health
In the carbonated soft drinks (CSDs) market, consumers’ health perceptions continue to cast a shadow. With less than half of US consumers considering CSDs to be healthy in moderation, there’s an appetite for reformulation and significant interest in CSDs fortified with vitamins or minerals. Notably, 61% of CSD users aged 35-54 state that vitamins/minerals would make a CSD a healthy drink option. Moreover, niche interest in drinks supporting brain health and relaxation signals opportunities for product differentiation and innovation.
Energy drinks resonate with women’s wellness aspirations
The energy drinks sector rides the wave of fitness and wellness trends, particularly among younger women. Products such as Celsius and Alani Nu succeed due to their low/no sugar and calorie contents, marketing themselves as BFY sources of energy. The packaging design and lifestyle branding resonate with this consumer demographic, encapsulating an aspirational fitness lifestyle.
Featuring wording and imagery that resonates with a fitness lifestyle, Celsius’ packaging targets younger women. Source: Celsius
Flavor and ingredient innovation in the US non-alcoholic beverage market
Over one-third of consumers agree that trying a new beverage flavor feels exciting.
Source: US Trending Flavors and Ingredients in Non-Alcoholic Beverages
Flavor innovation in the non-alcoholic drinks market: Consumer interest in flavor trends is split between tropical and fruity flavors (including floral notes), such as lychee and more subtle and tart flavor options, such as blood orange or elderberry. Over the past three years, tropical beverages have experienced 98% growth in product introductions.
Watch out for multi-sensory appeal in non-alcoholic beverage trends: Sober curious drinks described as “tart” have increased by over 40% globally in the past three years, with the versatility to add boldness to familiar fruity flavors. The spectrum of sour can range from the subtle tartness of key lime, capturing more general consumer interest to bolder flavors that connect with younger audiences. Flavors paired with aromatic or textural experiences make the act of drinking more enjoyable and memorable. But, not only can tart create a more intense sensory experience, but many tart ingredients have inherent health benefits as well.
Tailored occasions: Drinking occasions for non-alcoholic beverages are widespread across settings and times of day.
As a result, brands are customizing sober curious drinks for specific times of day, seasons, or use cases. For instance, relaxing botanical mocktails for evenings and vibrant, fruity hydration drinks for active afternoons.
The rise of non-alcoholic beer and wine
Non-alcoholic beer and wine are entering the mainstream, driven by increased quality and consumer interest. Once considered inferior in flavor to alcoholic counterparts, modern offerings now boast robust profiles that compete with traditional drinks.
For example, the established French Champagne brand owner LVMH has made investments in zero-alcohol sparkling wine to show its commitment to alcohol moderators and giving non-alcoholic alternatives a seal of approval.
RTDs and mocktails are rising non-alcoholic drinks market trends
55% of those moderating their alcohol intake are looking for more pre-mixed sober options.
Source: The Future of Wine and Spirits
The ready-to-drink (RTD) category and crafted mocktails are booming, representing a major growth area for brands, such as premium RTDs, which will see a growth in launches in the next two years. Premium RTDs and mocktails offer consumers an affordable luxury at home, tapping into the ongoing trend of at-home socialising as concerns about inflation shape consumer behavior. These products are viewed as mindful splurges that don’t compromise on taste or quality.
Moreover, RTDs can score with sober curious consumers, looking for functionality. RTDs with added functional benefits, such as hydration properties or botanicals that promote relaxation, resonate with a wide consumer base.
Another added benefit of RTDs is that they can be sold in variety packs and portable formats (for on-the-go consumption), offering an introduction to new flavors for consumers seeking convenient and low-commitment ways to trial different options.
How Brands Can Move Forward in an Era of Sober Curious Drinks
Non-alcoholic beverages are no longer a passing trend; they are reshaping drinking habits, product portfolios, and the beverage industry as a whole. Brands that invest in innovation, respond to consumer needs, and deliver on quality will emerge as frontrunners in this growing market.
Actionable Insights for Brands:
- Prioritize natural ingredients, functional benefits, and label transparency to align with health-focused consumers.
- Innovate with emerging flavors that reflect modern preferences for refreshing, tart, or botanical tastes.
- Offer variety packs and seasonal flavors to ensure engagement and excitement.
Is your business strategy aligned with the evolving preferences of beverage consumers? Have you fully explored your customers’ consumption habits? With Mintel’s leading independent market and consumer research, you can strategize according to the latest trends and developments in non-alcoholic beverages in the US.
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