The alcohol industry has always been intriguing for investors. Over the last decade or so, the craft beer revolution has seen many people dip their toes in, seeing small, independent brewers go global with their range of IPAs, NEIPAs, sours and beyond popping up in bars and supermarkets in all four corners.
However, the market is growing again, and while craft is still king, there’s also a trend of non-alcoholic beers becoming more and more prominent too.
The demand is rising for all manner of reasons, from consumer preferences to the fact that more people are recognising their relationship with alcohol is problematic and they’re making changes in their life. In fact, across alcohol rehab UK centres, more and more people are checking in to get their lives back on track.
That, alongside Gen Z and Millenials also shunning alcohol in their masses, is leading to a dynamic and high-demand 0% scene, and it’s something many investors should be looking at. And here’s why…
Growing Health and Wellness Trends
As we’ve briefly covered already, there’s been a shift, particularly among younger people to being more aware of the dangers of alcohol and what a healthy and well-balanced lifestyle looks like.
That means people are turning to non-alcoholic alternatives in line with their dietary choices and overall wellness goals. Beverages like infused waters, kombucha and non-alcoholic beers like Lucky Saint are becoming a part of that, and that shows no sign of slowing down.
Rising Demand for Low and No-Sugar Options
With growing awareness of the adverse effects of excessive sugar consumption, there is a significant demand for low and no-sugar beverages. This trend is reflected in the increasing popularity of products such as flavoured water, diet sodas, and unsweetened teas. Brands that innovate and offer tasty, low-sugar alternatives are well-positioned to capture a substantial market share. Investing in companies that prioritise healthy, sugar-free options can be a lucrative move as consumers seek to reduce their sugar intake without sacrificing flavour and enjoyment.
Expanding Consumer Base
While Gen Z and Millennials are perhaps leading the way when it comes to a sober lifestyle, it is also rubbing off on older generations too and encouraging healthier drinking habits on a more global scale. Effectively, it’s driving a new range of ‘sober-curious’ people that are picking up 0.5% NEIPAs and pales at the supermarket, becoming part of that revolution.
It’s providing fertile ground for innovation and growth, and while craft beer isn’t necessarily dying as a result, it’s showing that there is space for both in a world where people are more conscious about what they’re drinking on a regular basis.
Innovations and Product Diversification
The non-alcoholic beverage market is ripe with innovation. Companies are continuously developing new products and flavours to meet diverse consumer needs. The introduction of novel ingredients, such as adaptogens and CBD, is creating entirely new beverage categories. Moreover, advancements in technology are enhancing product quality and shelf life. For example, cold-pressed juices and non-dairy milk alternatives are gaining traction due to their perceived health benefits and superior taste. By investing in companies at the forefront of these innovations, investors can capitalise on the market’s rapid evolution and diverse offerings.
Strong Market Growth and Revenue Potential
Finally, you just need to look at the numbers. The non-alcoholic drinks market has shown huge growth in recent years. The global non-alcoholic beer market alone is estimated to grow to a worth of almost $36 billion by 2031, and that’s not including the rise in 0% spirits and non-alcoholic cocktails too.
What’s more, trends towards a healthier lifestyle aren’t going to change in the coming years either, it’s only going to grow even more, making it prime time to start investing.
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