Explosion of Non-Alcoholic Beverages in the United States

The non-alcoholic beverage market in the USA is worth nearly 2 billion dollars and is set to grow

Globally, the consumption of non-alcoholic or low-alcohol beverages has grown exponentially in the last 5 years, marking a +5% in 2023 compared to the previous year. As of today, the market is worth 13 billion dollars and is expected to grow steadily at 6% annually through 2027.

In the United States, growth is driven by Gen Z and Millennials, who are choosing to consume less and less alcohol. The alcohol-free trend, once limited to monthly initiatives like Dry January or Sober October, is now becoming a widespread habit.

The non-alcoholic beverage market is also a particularly fertile ground for wine or liquor producers, who can leverage their already established brand name to expand their offerings to a broader audience accustomed to drinking water and other non-alcoholic beverages.

But why is American Gen Z drinking less alcohol?

The answer to this question is not straightforward, but encompasses a series of theories and behaviors that have emerged among younger people in recent times.

• Focus on mental health: Alcohol has always been seen as a means to drown out the sorrows of daily life, taking advantage of its numbing effect. However, with the spread of greater awareness among new generations about the spectrum of human emotions, alcohol is no longer seen as a solution, but rather as the cause of other troubles
• Healthier lifestyle: In the United States too, there is a growing focus on adopting a healthier lifestyle that, in addition to better nutrition, involves reducing or eliminating alcohol consumption
• More education and social media: The negative effects of alcohol are increasingly discussed both in classrooms and on social media platforms like TikTok, where science communication videos reimagined in a simple and interesting way allow American Gen Z to stay informed even during leisure time

How can companies leverage this change to their advantage?

In a rapidly evolving market, it is essential for companies to keep up with new trends and meet changing consumer tastes.

In the United States, non-alcoholic beer dominates the market, with sales up 32% in 2023 compared to the previous year. Leading the pack is Heineken 0.0, with sales of 77.45 million dollars in 2023, followed by Bud, with volumes amounting to 55.44 million dollars. On the other hand, consumption of traditional beer has plummeted by 15% between 2000 and 2022.

Another rapidly expanding product in the USA is kombucha, a fermented beverage made from sweetened tea, often associated with health benefits thanks to the presence of probiotics and antioxidants derived from the bacterial fermentation process. In 2021, the beverage's market share was worth 2.64 billion dollars, but it is estimated to grow by 15% by 2030.

The non-alcoholic beverage market in the United States thus offers great growth opportunities, but the challenge for producers remains to create beverages with interesting flavors to satisfy the palate of those who choose not to drink alcohol and attract the interest of Gen Z and Millennials.