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The meteoric rise of low to no alcoholic drinks category

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14/12/2021 The low to no alcoholic beverage industry has skyrocketed in the last decade. This article looks at this trend closely to understand this rise and demand for low and no alcoholic beverages.

Low or no alcohol beverages are taking the world by storm. ABV, a terminology that represents Alcohol by volume, is something that is gaining more attention today. The health and wellness movement around the world has been seeking a solution for their love of beverages and cocktails minus alcohol. Most times, they ended up receiving a sugary concoction or just didn’t drink anything instead. Low to no alcohol beverages are building a very powerful solution for this dilemma.

Low to no alcohol beers and spirits are not anti-alcohol by nature. They are inspired by the iconic drinks that are often crowd favorites, just created in a different direction. Low to no alcohol spirits are available across a wide range of beer and wine to spirits, seltzers, mocktails, and champagne, and more. Sober-curious individuals are one of the prominent audiences of this category. Individuals who would love to reduce their alcohol intake without compromising on their consumption and experiences have also taken to Low to No ABV spirits rather quickly. It has also become an interesting place for individuals to experiment with beverages with minimal alcoholic content that they could consume at any point in time of their day.  The low to no alcoholic content helps bring transparency to what is in the beverage and what consumers are putting in their bodies. With conscious consumption and sustainable living lifestyles on the rise, low to no ABV beers and spirits are making homes on shelves in private bars as well as celebrated establishments.

This category was created and redefined by the icon of low to no alcoholic beverages, Seedlip. He found himself at an elite London restaurant looking for a good drink but was served with an overly sweetened fruity mocktail. Branson had a look at the drink in his hand and wondered if there was a more sophisticated way to hold back on the alcohol and still have a good time. In 2013, Ben Branson founded Seedlip which is now a trailblazer in the nonalcoholic spirits space creating booze-free botanical beverages. They are currently available in over 37 Global Markets. Seedlip Garden 108, Seedlip Grove 42, and Seedlip Spice 94 are their primary offerings.

Do low or no alcohol beers and spirits have a bright future? Absolutely yes. Is Low to no alcoholic beverage category a niche of the niches, something artisanal and limited? Absolutely not. In a recent report, Bacardi predicted 400% growth in the low to no alcoholic beverages category. The COVID-19 Pandemic provided a strong impetus to the rise of low to no alcoholic beverages. IWSR Drinks’ market analysis of 10 countries including the U.S., U.K, Canada, and France predicted over 31% growth in sales over the next few years, globally. Amongst these, low alcohol beer leads the category. Low to no alcoholic beer accounts for over 80% of the total global no-low beverage market. Over 35% growth in volume consumption of low to no alcoholic beverages is expected by 2024. The number of global nonalcoholic beers has grown 166% from 2016 to 2020, according to Mintel GNPD.

Ritual Zero Proof Spirit Alternatives

Ritual Zero-Proof Spirit “Alternatives”. Image Source: Bevvy

Seedlip has also paved the way for more products to enter the low to no alcoholic spirit category. Pernod Ricard has bought a sizeable stake in Ceder that is a non-alcoholic gin alternative made from classic gin botanicals such as juniper, coriander, citrus, and exotic botanicals. William Grant & Sons’ launched Atopia made from “natural” distillates, flavors, and extracts, and available in two variants: Spiced Citrus and Wild Blossom. Atopia contains ​​75 times less alcohol than a standard gin and tonic. Diageo’s Distill Ventures invested in Ritual Zero Proof. Ritual Zero Proof is a Chicago-based teetotaler range of beverages that has a faux gin, whiskey, rum, and tequila lineup with no artificial additives. The brand has seen a growth of 241% in 2020 and a revenue jump of 452% in the first quarter of 2021.

Newer low to no alcoholic beers and spirits are launched globally almost every week. Millennials and Gen Z are leading this beverage revolution by reimagining their celebrated moments as well as the mundane with less alcohol but more crafted beverages. They seek the textures of a quality cocktail with the flair and the taste as well as the Instagram potential, minus a sizable ABV. It is also always great to celebrate or socialize with minimal to no hangovers which is a gift brought by the low to no alcoholic beverage. Everyone loves a win-win!

Header image source - SXSW

Article by - Prithvi Nagpal, Editor & Sommelier

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