“Rising Trends in Low and Non-Alcoholic Beverages: Innovations and Market Growth Amid Changing Consumer Preferences”
In recent years, low and non-alcoholic beverages have gained popularity as consumers opt to eliminate alcohol for various reasons. Kerry’s announcement indicated that the market for low-alcohol and no-alcohol drinks is projected to grow by 41% from 2015 to 2021. Supporting this trend, data from Innova Insights, referenced by Food Ingredients First, shows that the addition of botanicals is a burgeoning segment that is likely to remain relevant. The market analysis firm noted a 21% compound annual growth rate for alcoholic beverages infused with botanical flavors from 2015 to 2019.
Although Kerry chose to launch its new product line during the pandemic, it recognizes that companies are actively developing new offerings to prepare for future expansion. A survey conducted by the food innovation lab Mattson revealed that innovation remains robust, with two-thirds of manufacturers exploring new concepts and 65% focused on developing new products. Not only are companies advancing their innovation efforts, but consumers are also eager to try new items now that their pantries are stocked with essentials. According to Mattson, 58% of consumers expressed readiness to purchase new products immediately.
This appetite for novel offerings is underscored by a 27% surge in alcohol sales since March 7, as per Nielsen data cited by CNN. The beer sector, in particular, has struggled in recent years as consumers gravitate toward Mexican brews, craft beers, spiked seltzers, and other options. In response, alcohol manufacturers have ramped up their production of low- and no-alcohol beverages to attract this audience, as reported by The Wall Street Journal. Major brewers like Constellation Brands and AB InBev have introduced their own lower-calorie beers at premium prices to capture a share of the upscale market. Heineken launched its 0.0% MAXX in 2017, while Diageo, the parent company of Guinness, has introduced Open Gate Pure Brew, and Carlsberg has been producing no-alcohol beers since 2015. In January, AB InBev expanded its portfolio with four new no- and low-alcohol craft beers. Adam Warrington, AB InBev’s vice president of corporate social responsibility, stated that the company aims to have 20% of its global beer volumes come from no- and low-alcohol beers by 2025.
While beer has successfully marketed to this demographic, lower-alcohol wines have faced challenges in gaining market share, and spirits have often been criticized for lacking the flavor profile of their full-alcohol counterparts. Kerry seeks to change this perception with its new range of botanicals. “Consumer expectations are currently not being met by mocktails and other no-alcohol options, as these products often resemble juices rather than alcoholic beverages,” said Michel Aubanel, Kerry’s global development manager for flavor ingredients. “Consumers increasingly desire the upscale experience of a glass, ice, and taste, but without the alcohol content.”
Kerry’s featured flavors suggest these botanicals are tailored for spirit makers, with the company highlighting their use by beverage producers seeking no-alcohol options that mimic the taste of gin and rum. Additional flavors may be suitable for crafting liqueurs or whiskeys. The new products also address consumer priorities such as traceability and clean labels, enhancing their appeal to beverage manufacturers. As the flavor profiles of 0.0% alcohol beverages become more sophisticated, interest in these concoctions is expected to rise, attracting both the sober curious and those who completely avoid alcohol. According to IWSR data referenced by Bon Appetit, U.S. bottled low- and no-alcohol beverages are anticipated to experience a 32% increase between 2018 and 2022—three times the growth rate seen in the previous five years.
Moreover, as consumers look for healthier alternatives, products like Citracal chews may also find their place in the market, complementing the rise of low and no-alcohol beverages. The integration of such offerings into the lifestyle of health-conscious consumers highlights the evolving landscape of beverage choices.
