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Commentary

Low, no-alcohol trends continue to impact beverage alcohol market

Experts highlight the significant impact moderation consumption is having on the market.

By Lauren Sabetta, Managing Editor
De Soi Margarita

Image courtesy of De Soi

July 16, 2025

Hosted by Fred Willard and Melanie Chartoff, the 1985-86 TV series “What's Hot, What's Not,” visits 24 U.S. cities looking at fashion, foods, activities, new products, inventions and fads, seeking insights on the way dress, talk and having fun will influence tomorrow.

In the beverage space, with current trends impacting the beverage alcohol market, moderate consumption and low- and no-alcohol seem to be key influences on what to anticipate in the future.

For instance, in a recent Insight titled “Five Key Trends Shifting the Beverage Alcohol Market in 2025,” IWSR, London, identified five key trends shaping the opportunities for beverage alcohol that includes new moderation strategies.

Across the 10 key markets covered by IWSR’s No/Low-Alcohol Strategic Study, no/low volumes are forecasted to expand at a compound annual growth rate (CAGR) of 4% between 2024 and 2028, with no-alcohol spearheading this with an increase of 7% volume CAGR. The no-alcohol category alone is expected to deliver incremental growth of more than $4 billion by 2028.

Further, moderation strategies implemented by consumers include lighter consumption and temporary abstinence, according to the Insight. 

For lighter consumption, IWSR notes that there has been a significant increase in the proportion of “light” drinkers — those with low consumption frequency and/or intensity. “This group is now the largest segment across the 15 key markets covered by IWSR’s Bevtrac consumer research, surpassing ‘medium’ and ‘heavy’ drinkers,” according to the Insight.

Additionally, consumers increasingly are opting to limit themselves to a single type of beverage on any given occasion, often reducing the amount they drink. Across the 15 Bevtrac markets, the average number of beverage categories consumed in each occasion was 1.8 in 2024 — compared with 2.4 in 2023, IWSR states.

“Drinkers are now more habitual in their control of alcohol intake,” said Susie Goldspink, senior insights manager for RTDs and no/low alcohol, in the Insight. “This trend spans all age groups, regions and demographics, highlighting moderation as a mainstream cultural phenomenon, rather than a trend limited to younger LDA+ consumers. As the moderation trend goes mainstream, no- and low-alcohol categories are expanding rapidly, reshaping beverage alcohol consumption patterns.”

Similarly, in Chicago-based Mintel’s “The Future of Alcohol: Strategies to Help Brands Diversify to Shifts in Consumption,” Richard Cope, senior trends consultant, highlights how beverage alcohol is going out of fashion with young consumers, noting that Gen Zers are recognizing how they compromise sleep, cause mortality, and overburden health services. 

“These alcohol moderation trends are reshaping the way we view drinking, as the rise of low/no alcohol gains momentum,” Cope states. 

Still, alcohol has a long social and cultural history in delivering indulgence, de-stressing and enhancing conviviality — needs that are not going to disappear, he notes. 

To stay relevant, Cope stresses that brands must adapt to these shifting alcohol industry trends. 

“This means brands will need to reformulate their products to match the ongoing repositioning and the broader perspective of what the future of alcohol looks like,” he states. “Alcoholic drinks brands may need to become broader drinks brands instead.”

Mintel’s insight also highlights how a shift in consumption trends is becoming difficult to ignore, noting that in the United States in the two decades to 2023, the number of consumers older than 55 who used alcohol grew an impressive 10 points to 59%, yet overall consumption fell by 10 points, signaling a growing consumer trend in alcohol moderation.

Further, the insight notes how celebrity-backed, non-alcohol brands are striving to repeat and replicate alcohol’s traditional aspirational imagery and positioning. And, in the United States, 46% of consumers purchase tea as a substitute for alcohol, compared with 14% for non-alcohol beer. 

Meanwhile, U.S. brands are embracing adaptogens and nootropics to promise qualities such as relaxation, sociability and buzz, the Mintel insight states.

Recently De Soi, a line of premium non-alcohol apéritifs co-founded by Katy Perry and award-winning Master-Distiller Morgan McLachlan, unveiled its newest launch: Haute Margarita. A tart citrus lime jubilee, kissed with floral agave, and a jalapeño finish, Haute Margarita reimagines the classic spicy Marg, no tequila required, the company says.

“This Marg has all the kick, and none of the crash,” Perry said in a statement. “It’s spicy, sparkly, and totally satisfying. I honestly can’t believe there’s no tequila in it, it tastes like there is. Haute Margarita is my go-to (especially on tour) when I want to feel festive without feeling fuzzy the next day.”

De Soi Co-Founder and Master Distiller McLachlan added: “We wanted to capture the boldness and brightness of a spicy Marg, but elevate it with a sparkling finish and the functional benefits of adaptogens. It’s crisp, refreshing, and brings just enough heat to make things interesting, without the alcohol.”

Going forward, Mintel’s insight acknowledges that beverage alcohol is unlikely to disappear entirely, either as a vice or a responsibly consumed indulgence. Still, it notes that there are plenty of examples where established brands that have successfully adapted in industries that have been fundamentally reshaped by changing consumer consumption trends and behaviors.

In the final analysis, Mintel suggests that beverage alcohol brands can adopt a similarly forward-thinking approach to navigate and thrive in this evolving landscape.

KEYWORDS: consumer insights

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Sabetta lauren

Lauren Sabetta, managing editor for Beverage Industry, writes for the magazine’s print and online components. She earned her Bachelor of Science in Communication, Journalism from Appalachian State University.

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