The Exponential Growth of the Non-Alcoholic Drinks Sector and Future Prospects
Ever since the pandemic hit the world, there has been a drastic change in peoples’ drinking habits as they have become more health-conscious than ever before. Consequently, people are increasingly shifting towards alcohol-free drinks.
In Britain, the Zero Alcohol Revolution is spearheaded by millennials as they are not only becoming more mindful of their health, but are also saying goodbye to the booze to save money. Not drinking is now the new millennial cool.
Due to this shift in the drinking habits of millennials and others, the non-alcoholic drinks sector witnessed an unprecedented increase in demand, and resultantly the revenue.
This demand was already present prior to 2020, the pandemic only accelerated the transition to booze-free drinks.
So let’s have a look at some of the statistics which show how immensely the sector has grown.
We will also have a look at some alcohol-free drinks brands that witnessed record-level growth and reached new heights due to the changing consumer preferences.
So let’s get started!
Growth of the non-alcoholic drinks sector
1. USD 1732.7 billion by 2028: Fior Markets
According to Fior Markets, the non-alcoholic drinks market is on track to reach USD 1732.7 billion by 2028.
The market research firm believes that innovation in the drinks industry, an increase in the number of nutritious beverages, and the mass adoption of e-commerce by the non-alcoholic drinks brands will be some of the reasons for the exponential growth.
2. 44% growth in the USA: Neilson
You can find pubs and bars in almost every nook and cranny of the USA. The bars are one of the most favorite entertainment spots of Americans and a place to relax after a week-long demanding work schedule.
Yet, surprisingly, the non-alcoholic drinks sector experienced a whopping 44% growth in the week up to May 9 in 2020 compared to the same period in 2019.
This was revealed in a research conducted by Neilson.
According to the renowned market research firm, the major contributor to the growth was e-commerce sales which were up by 339% in the week up to May 9, compared to the same period last year.
3. One-quarter of US adults participated in Dry January: You Gov
Dry January is an annual event that is observed all around the world with the aim of abstaining from drinking for one complete month.
The inaugural edition of Dry January was held in 2013 and over the past few years, it has turned into a massive movement.
Just like in other countries, Americans also celebrate this month every year. However, 2021 was a special Dry January as the highest ever number of people participated in the annual event.
According to You Gov, one quarter or 25% of USA adults who drink participated in Dry January in 2021 which was a remarkable increase from 10% in 2020.
4. 71% of Alabamans are willing to switch to non-alcoholic beer
A study by RecoveryFirst.org in April 2021 found out that 71% of residents of Alabama (a US state) are willing to switch to non-alcoholic beer for one month to see how it feels like to remain booze-free for a particular period.
They are willing to make the switch if they find a suitable alternative.
Not only that, but over half of Americans overall are also ready to make the shift.
When asked about the reason for switching, 51% of Americans said no hangover is what excites them to be booze-free for a month.
This research proves that there is a huge unmet demand in the non-alcoholic drinks space. Therefore, if brands can produce quality drinks that don’t compromise on the taste, there is no reason people won’t buy them.
5. 31% growth by 2024: IWSR
While the Zero Alcohol Revolution is slowly establishing itself in all parts of the world, there are certain countries that are ahead of the curve.
According to a report by IWSR, a drink market analysis firm, the alcohol-free drinks market is expected to witness a 31% increase by 2024 in ten key markets: Spain, UK, Australia, Germany, USA, France, Brazil, South Africa, Canada, and Japan.
The reason why only these ten nations were included in the study was that they collectively constitute more than 75% of the no and low alcohol industry and hence drive the overall industry worldwide.
6. Average growth of 6% per annum by 2023: IWSR
Another report by IWSR revealed that non-alcoholic drinks are increasingly becoming popular in the UK with each passing year.
The market is expected to grow by an average of 6% per year until 2023. According to IWSR, the main driver of this growth will be constant innovation in the industry.
The report also suggests that in order to take advantage of this rapidly growing space, brands in the UK need to expand their on-trade offering instead of offering just one option to the customers.
Brands that boomed!
By now, you are well aware of how much the zero-proof industry has grown over the past few years - especially after the pandemic - and what lies ahead.
As a result of the enormous growth of the segment, not only did many non-alcoholic brands worldwide witnessed unprecedented growth, but massive investments also poured in.
Let’s have a look at some of the brands that operate in the zero alcohol industry and how they were able to take advantage of the enormous growth.
1. Drink Dry
Drink Dry, founded by Erika Doyle, is the UAE’s first and only non-alcoholic drinks marketplace that offers premium drinks from different parts of the globe under one umbrella.
The company started its operations in December 2020 at a time when there was hardly any talk of non-alcoholic drinks in the region. Therefore, marketing and growing the brand was quite a challenge.
However, Drink Dry quickly became the talk of the town due to its superior quality alcohol-free tipples and the ease with which you could order them: place your order online and get the drinks delivered the same day anywhere in the UAE.
The success of the platform can be measured from the fact that in less than 6 months, Drink Dry’s premium zero-proof drinks have made inroads into the retail sector with listings at Choithrams and Noon Daily as well as the drinks now being available in the hospitality sector all across the UAE.
Due to Erika’s untiring efforts in spreading the Zero Alcohol Revolution message all across the UAE, she was named as one of the top women entrepreneurs in the UAE by Time Out Dubai.
2. Athletic Brewing
Athletic Brewing raised a $50M investment taking its total tally of funding to date to $70 million.
The company is one of the fastest-growing non-alcoholic drinks brands witnessing a 230% growth ever since it launched in 2018.
Athletic Brewing already has two breweries and they aim to use the investment to build a third one in Connecticut.
3. Lyre's Spirit Co
In May 2021, Lyre’s completed its latest funding round, valuing it at €115m. With this investment, Lyre’s became the most valuable independent no and low alcoholic spirits brand.
The €115m is not the only achievement of the fast-growing brand.
Lyre’s is available in more than 43 countries, making it the most widely distributed no and low alcohol spirits brand.
Furthermore, the company won 13 medals at the International Spirits Challenge held in May/June 2021 and was the only non-alcoholic brand to win gold across every category.
Indeed, an impressive feat!
4. Big Drop Brewing Co
It is not just the big names that are reaping the benefits of increased awareness of alcohol-free drinks among the public and the resultant increase in demand.
Big Drop Brewing Co, an independent alcohol-free beer company that has its global headquarters in London, recently raised a £3.5m investment. It plans to use it to grow the brand in the UK and overseas.
The Series A funding was raised with the support of Panoramic Growth Equity and Ruix Ventures.
Big Drop has seen a massive 150% year on year increase in revenue and the company forecasts to reach £5m in sales by the end of 2021.
There is no stopping the Zero Alcohol Revolution
The increase in demand for non-alcoholic drinks and the resultant growth of the companies operating in the sphere point towards the fact that the boom in the NOLO drinks sector is here to stay, even when the world returns to normal post COVID.
This is because the zero-proof drinks sector has undergone a lot of transformation and innovation, resulting in the production of much higher quality drinks.
Whether you operate in the B2B or B2C space, riding the non-alcoholic wave will make you one of the early movers in this space and differentiate you from the competitors.
So get in touch with Drink Dry to stock premium non-alcoholic craft at your venue and treat your customers with something different the next time they visit you.
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