Low-alcohol sales soar as teetotal stigma slumps

Once upon a time, choosing to abstain from alcohol consumption in social situations carried with it a noticeable stigma. But times have changed, and now choosing to not drink alcohol is becoming widely accepted by society, in fact, it’s becoming popular.

Consumers are increasingly opting for low- and no-alcohol drinks as sector sees sales soar (Getty Images)Is choosing non-alcoholic still stigmatised?Sales of non-alcoholic beverages have increased since the mid-2000s, when alcohol consumption began its slow but steady decline. And such is their success, the global non-alcoholic drinks market is now valued at a whopping $1.46tn and is projected to grow at a CAGR of 6% over the next five years, according to Grand View Research.

“The stigma surrounding low- and no-alcohol drinks has largely disappeared,” says Brian Rosen, founder and managing partner of InvestBev.

So, how has low- and no-alcohol overhauled its reputation, to take itself from the fringes into the establishment?

One of the reasons is manufacturers heavily investing in new product development and the marketing to go with it.

“A key part of this investment is above the line with our global sports sponsorships such as the Formula 1,” says a spokesperson for Heineken.

The Dutch brand is also partnering with television shows, such as Britain’s Emmerdale and Coronation Street, for product placement opportunities.

“Low- and no- being commonplace within these much-loved onscreen institutions has a significant impact in normalising the category,” says Heineken.

There’s much less stigma about ordering a low- or no-alcohol drink than there was even five years ago, with some of the big producers entering the market helping to familiarise the category

Peter Gowans, Erdinger AlkoholfreiAdded to this, the growing availability of low- and no-alcohol drinks, means consumers are just more used to seeing them in their local shops, pubs and bars – they no longer stand out as new or unusual.

“There’s much less stigma about ordering a low- or no-alcohol drink than there was even five years ago, with some of the big producers entering the market helping to familiarise the category,” says Peter Gowans, UK country manager for Erdinger Alkoholfrei.

The current decline in alcohol consumption, resulting from the growth of the health and wellness trend, the rising cost of alcoholic drinks, and the increased choice of alcohol-free options, is also clearly having an impact on the growth of the sector.

“As these products become more mainstream and consumers increasingly prioritise moderation, they’re no longer seen as lesser or inferior drink alternatives,” adds InvestBev’s Rosen.

Also read → Alcohol consumption declining: Why this could be good news for the beverage industryDespite the rise in popularity of the non-alcoholic sector, 1 in 5 Gen Zers still feel judged when choosing non-alcoholic drinks (Getty Images)What barriers do low- and no-alcohol beverage manufacturers still face?Despite the growing popularity of the low- and no- alcohol category, research conducted by Heineken in collaboration with University of Oxford Professor Charles Spence, revealed that in some situations social pressure is still a barrier to selection of low- and no-alcohol options. The study found that one in five Gen Z-ers still feel judged when choosing non-alcoholic drinks, meaning there is still work to do to raise the profile of the sector and eliminate the stigma completely.

“The industry has already made significant progress in normalising these beverages, and continued focus on innovation and quality will only strengthen their position,” says InvestBev’s Rosen.

Erdinger Alkoholfrei’s Gowans also believes consumer education is important to help fully normalise low- and no-alcohol options.

“Education about the benefits of cutting back on alcohol consumption, and the role of drinks within a healthy lifestyle, remains an important tool in continuing the acceptance of the category,” he says.

Despite this, the industry is confident that consumer attitudes towards low- and no-alcohol offerings are continuing to improve.

“The stigma is shifting massively and that is helped by trade venues improving visibility on menus and front of bar. This needs to continue,” says Laura Willoughby, founder of mindful drinking organisation, Club Soda. “Venues, especially chains could do with training their staff and buyers more and retailers need to make shelf space.”

Also read → Are non-alcoholic beverages falling short on flavour?The low- and no-alcohol sector is confident sales will continue to rise as consumers become more and more familiar with the sector (Getty Images)