by Cara Rasch
April 23, 2025
Demand for non-alcoholic beverages is booming due to the “sober curious” movement, generational shifts in alcohol consumption, and health concerns.
As consumers increasingly focus on wellness and mindful consumption, the way people drink is undergoing a profound shift. A powerful “sober curious” movement is taking hold and driving a boom in the market for sophisticated alcohol-free alternatives as many people cut back on alcoholic beverages.
At the heart of the non-alcoholic (NA) beverage boom is the “sober curious” movement. This trend is not about complete abstinence but is instead a conscious exploration of one's relationship with alcohol, often leading to mindful moderation or periods of sobriety. Temporary initiatives such as “Dry January” have also played a role in raising awareness and encouraging individuals to experiment with alcohol-free living.
Furthermore, there is a significant generational shift among younger adults, particularly members of Generation Z. These consumers are demonstrably less likely to consume alcohol compared to previous generations at the same age.
In fact, Packaged Facts’ November 2024 National Online Consumer Survey finds that 42% of adults aged 18-24 report they never drink alcohol (including identifying as sober), much higher than the consumer average of 31%. Some of this is attributable to a portion of the group (those aged 18 to 20) being under the legal age for consumption, but it is worth noting that adults in this age bracket who can drink legally still do so less than their predecessors.
This cultural change is reshaping the beverage landscape and underscoring the importance for the industry to cater to an evolving consumer base with appealing NA and low-alcohol options.
The decision to reach for an alcohol-free option is often related to health concerns. Increasing awareness of the negative impacts of alcohol – from increased risks of cancer and cardiovascular disease to negative effects on mental well-being – is a major driving force.
Additionally, growing cannabis consumption is sometimes leading to people seeking out alcoholic beverages less often. Many consumers perceive there are fewer risks in using cannabis, leading to a substitution effect. As legalization of cannabis continues to expand in many states, cannabis use is also becoming more socially accepted.
The growing trend of “zebra striping” – a moderation tactic where individuals switch between alcoholic and non-alcoholic drinks during social occasions – is also driving interest in non-alcoholic beverage alternatives. This highlights a desire for balance and control, where NA options become integral to a more mindful approach to drinking.
The convergence of these powerful trends is leading to massive growth opportunities for non-alcoholic beverage alternatives. The market for non-alcoholic alternatives to beer, ready-to-drink (RTD) cocktails, spirits, and wine is rapidly expanding. Packaged Facts’ latest report on the NA beverage market forecasts an impressive average annual growth rate of 18.5% through 2029 for retail sales of these products.
The future of NA beverages is ripe with opportunities for innovation. Improved taste, unique and sophisticated flavor profiles that better mimic their alcoholic counterparts, and enhanced product presentation are all crucial for continued growth. The inclusion of functional ingredients that promote relaxation also holds immense potential, as consumers can feel destressed and uplifted without the intoxicating effects of alcohol.
Additional analysis on the non-alcoholic beverage alternative market can be found in the April 2025 Packaged Facts report Non-Alcoholic Beverages: Market Trends and Opportunities for Alternatives to Alcoholic Beverages.
About the blogger: Cara Rasch is a food and beverage analyst for Packaged Facts. She studies consumer and industry trends in this space and has a B.A. in economics from Allegheny College.
Provide the following details to subscribe.