The Low and No Alcohol Drinks category is experiencing a remarkable surge in popularity, with over 53% of consumers exploring new options within this segment. Admittedly, I once held reservations about this category, but recent developments have compelled me to reassess my stance.

Gone are the days when designated drivers or those opting to remain sober at social gatherings were limited to uninspiring choices like Diet Coke. Trusted brands now offer a diverse array of drink options, ensuring that consumers need not compromise on quality or taste while abstaining from alcohol. Remarkably, 3/4 of adults now indicate that they are moderating their alcohol intake, with 20% turning to low and no-alcohol alternatives for this purpose.

The evolving consumer sentiment towards choice is particularly intriguing, especially during seasonal occasions. Consumers increasingly expect a broader selection within this category, with major retailers like Waitrose expanding their merchandising space by 60% to capitalise on this trend.

Several factors contribute to the rising popularity of low and no-alcohol drinks. Heightened awareness of mental health issues has led many to realise that alcohol isn't a solution for coping with stress. Initiatives like Dry January have also served as a catalyst for individuals to prioritise their well-being, experiencing benefits such as improved sleep, enhanced productivity, and increased energy by abstaining from alcohol. Furthermore, the emergence of alternatives like CBD-infused beverages, boasting a Compound Annual Growth Rate (CAGR) of 28.7%, underscores the diverse landscape of non-alcoholic options.

The significance of this trend isn't lost on the hospitality industry, where an estimated £800 million is lost annually due to customers opting for tap water. Instead of viewing the rise of low and no-alcohol drinks as a threat, alcohol brands have the opportunity to enhance customer engagement and commercial value by offering enticing alternatives. Non-alcoholic versions of popular cocktails, such as gin and tonic, have proven to be particularly lucrative, with a third of all pub visits now excluding alcohol consumption. Educating venues and their staff about the breadth of options within this category can unlock substantial revenue potential.

As these trends continue to gain momentum both in on-trade and off-trade settings, it's unsurprising that brands are increasingly embracing sponsorship opportunities within this category. The synergy between alcohol, sports, and fan experiences ensures that such sponsorships foster positive associations with the brand, ultimately encouraging consumers to explore low and no-alcohol alternatives of the core ‘with alcohol’ master derivative.

Reflecting on my earlier scepticism, I recognise that I wasn't alone in underestimating the potential of this category. However, as the category continues to thrive with innovative products and rapid advancements, I eagerly anticipate its sustained growth, envisioning Dry January 2025 extending far beyond the holiday season hangover.

For insights into our collaborations with Peroni 0.0% and Ferrari, and to learn more about our partnership with Asahi Super Dry and Manchester City, visit our LinkedIn.