What began as a quiet beverage revolution has now evolved into a booming industry as an increasing number of consumers are embracing the alcohol alternative market. Fueled by a rising awareness of health, inclusivity, and shifting social norms, the demand for alcohol alternatives has surged, leading to remarkable growth in perception and sales. According to Grand View Research, the global non-alcoholic beverage market was valued at $1.17 billion in 2020 and is projected to reach $1.66 billion by 2028, with a compound annual growth rate (CAGR) of 4.9%. But beyond the impressive market figures, what truly stands out is the growing social movement driving this trend.
Data provided by Tastewise reveals that Alcohol Free is now the second-highest nutritional motivation in beverages, boasting a 1.21% social share, with a YoY growth rate of 39%. In January, it even surpassed the highest social share, protein, which had a 1.33% share. This trend is particularly noticeable during the dry January movement, but the trajectory line in share growth indicates a consistent rise even during other periods.
As consumer demand for alcohol alternatives continues to grow, entrepreneurs and large manufacturers alike are seizing the opportunity, leading to a rapid surge in new product launches in the alcohol alternative space. The previous year witnessed a 49% increase in new product launches, and over the past five years, the sector has seen a remarkable CAGR of 67.34%.
Source: Innova Market Research
The Emergence of Ready-to-Drink (RTD) Alcohol Alternatives
One key driver of this growth is the emergence of ready-to-drink (RTD) alcohol alternatives, accounting for close to a third of all products launched in this space. These RTD beverages often feature functional ingredients that align with the health and wellness aspect of the movement, providing consumers with a convenient way to explore alcohol alternatives without committing to higher-cost multi-pour options.
Source: Innova Market Research
Choosing the Right Product: 0.0% or Non-Alcoholic Beverage
For brands entering the alcohol alternative market, it is crucial to define the type of product that resonates with their ideals – a 0.0% beverage or a non-alcoholic beverage. A 0.0% beverage contains absolutely no alcohol, whereas a non-alcoholic beverage (sometimes labeled as “alcohol-free” or “alcohol-removed” products) can contain up to 0.5% ABV, following FDA standards. This distinction significantly impacts the formulation of the product, as alcohol is commonly used as a solvent to extract flavors from natural ingredients. Creating a true 0.0% beverage requires unique formulations and technology.
As a leader in the alcohol alternative industry, Flavor Producers offers the technology and expertise to help you craft your ideal alcohol alternative product. From Spiritless Spirits to functional RTD offerings, we specialize in formulating 0.0% and non-alcoholic beverages that deliver an authentic experience for consumers. Utilizing proprietary Tasteful Technologies®, Flavor Producers can not only help you mask unwanted functional ingredient off notes but also help you recreate the defining characteristics of alcohol-based products, resulting in a complex and genuine sensory experience for your consumers. This expertise applies not only to spirits and RTD beverages but can also be utilized in non-alcoholic beer and wine, and even in recreating alcoholic profiles for low-alcohol applications.
For more information on how Flavor Producers’ can help you join the rising movement of non-alcoholic beverages contact us at [email protected] or visit flavorproducers.com.