Another Dry January has come and gone—but for many, it wasn’t just a month-long reset.
Once a niche and overlooked part of the beverage cooler, non-alcoholic (NA) options have expanded their reach into new territories and occasions along its meteoric rise. The market saw a 29% jump from 2022 to 2023 and is expected to grow at a CAGR of 10.74% from 2024 to 2032. More consumers than ever this year are integrating NA beverage consumption into their lives, with no signs of slowing down.
From Sober Curious → to Sober Customized
The NA consumer is not a niche group—sobriety has taken on an expanded place in culture. The way people consume alcohol (or don’t) is shifting towards context-based moderation.
Consumers choose NA beverages as part of a personalized experience that may still include alcohol—93% of people who buy NA options also buy alcohol. Through “zebra striping” and “bookending” practices, consumers are integrating their beverage choices to achieve a customized balance that intuitively works for them.
From Social Norm → to Lifestyle Fit
Improving mental health and physical wellbeing is a major motivation for consumers to cut back on drinking. This lifestyle shift is impacting the role of alcohol in contexts that traditionally include it, such as sporting events, romantic dates and even parties. From NA après-ski to dry nightclubs, the market is creating opportunities for consumers to fit their preferences with their lifestyle without sacrificing their favorite activities.
“The rise of non-alcolohlic beverages follows a familiar path—successful brands aren’t just selling a drink, they’re selling a lifestyle. The brands that win will be the ones that create a strong identity, resonate emotionally and deliver a high-quality experience that consumers are proud to hold in their hands.” – David Volker, VP of Creative at LPK
From Bland Alternative → to Elevated Essential
Consumer expectations of NA beverages are higher than ever. With prices often matching that of alcoholic counterparts, NA brands must demonstrate value and deliver on quality. What separates NA of today from NA of the past is the rich flavor experience that brands can now provide. Consumers expect a nuanced complexity of flavor that mimics that of alcohol but are also open to exploring new taste profiles with unconventional ingredients.
The rise of functional ingredients in NA beverages demonstrates how consumers are drawn to added benefits. With the mood-boosting properties of adaptogens, nootropics and the like, brands provide a perceived cognitive shift that replaces the effects of alcohol without the downside.
From Visual Appeal → to Meaningful Identity
The aesthetic landscape of NA beverages is broad. Brands can leverage design anchors and twists to find their place and stand out on shelf and online. In a market full of creative new entrants, each expresses its identity in a way that communicates its specific benefits around flavor, function and lifestyle fit. Alcohol brands launching NA offerings have the added challenge of communicating a differentiated shift and avoiding confusion between products.
Beyond the package, NA brands must cultivate digital influence—activating their brand universe online where many consumers discover NA products that speak their language.
“Non-alcoholic brands must think beyond just being an alternative. The most effective strategies borrow from traditional beverage branding—balancing authenticity, standout design and cultural relevance to create products that feel as essential and aspirational as their alcoholic counterparts.” – Kyle Schutte, Group Director at LPK
How can beverage brands thrive in 2025 alongside non-alcoholic consumers?
- Dig deep into your consumers and their true occasions and need states, refresh your segmentation, or shake it up—NA beverages are no longer sequestered to only one consumer type or context.
- Stay agile and consumer-centric when aligning with lifestyle trends—activate your brand in socially relevant and culturally meaningful ways that align with your consumers’ desires in a NA experience.
- Develop a nimble innovation strategy that allows you to deliver on complex flavor as consumers’ palates expand and demand more from NA offerings.
- Consider your beverage portfolio as a whole, balance fun and function throughout every offering.
- Understand that the beverage market is more crowded than ever, and the NA category is following suit: create a meaningful identity with strong brand storytelling and strategic digital activation.
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