In a recent market research report, Spiros Malandrakis, head of alcoholic drinks at the market research firm, highlighted the shifting trend of reduced alcohol consumption among Gen Z – the generation born between the mid-1990s and early 2010s. According to Malandrakis, this generation displays a noticeable decline in their alcohol intake compared to previous generations.
One notable finding from the report was the significant growth in sales of non-alcoholic beer. In the year 2022 alone, non-alcoholic beer witnessed a remarkable 6% increase in total volume.
Malandrakis stated, “All major non-alcoholic segments were among the top performers in Euromonitor International’s latest alcoholic drinks system update.” He went on to elaborate on the growth of various non-alcoholic categories: “From non-alcoholic beer, which has been a part of drinking culture for decades and still experienced an enviable 6% total volume growth in 2022, to the emerging non-alcoholic wine segment with a 9% increase in total volume, and from the double-digit momentum of the relative newcomer non-alcoholic ready to drink (RTDs) to non-alcoholic spirits leading the way in innovation with a 10% total volume growth, it is clear that this trend is more than just a passing fad.”
Malandrakis further highlighted the rise of mindful drinking and sober curiosity, moderation initiatives, dry venues and events, and the presence of no/lo focused retailers. He emphasized the abundance of launches and innovation that are blurring the lines between the alcoholic and non-alcoholic realms. He added, “This trend, once considered niche, is now well-established, evolving, and holds enormous untapped potential for the future.”
The theme of moderation is especially important for younger cohorts who historically indulged in high-energy occasions and consumed alcohol in large quantities. For them, the mantra of ‘less but better’ premium drinking has gained momentum. Next-gen euphorics, alcohol proxies, and virgin extensions have emerged as popular alternatives to traditional alcoholic beverages.
New formulations have been developed to cater to various consumption occasions while functionality cues are replacing simplistic approaches to dealcoholization. The no/lo landscape in the alcohol industry is witnessing remarkable innovation and excitement through botanical alchemy and molecular experimentation with new ingredients. This trend is here to stay.