The 0% alcohol segment – fad or the future?

Recent analysis of the non-alcoholic beverage market has unveiled some interesting trends. In 2022, global sales of 0% alcohol beer and spirits reached almost $18 billion, with beer making up close to 90% of that. The penetration of 0% beer varies significantly by country: from as high as 11% in Germany and Spain, to low-single-digits in the UK and USA. 0% alcohol spirits penetration remains minimal, with the UK at around 1%, for example.

Why would anyone drink a 0% alcohol drink? Well, I have been interested to discover that only 18% of 0% alcohol consumers are actually teetotallers: according to the data, their motivations range from a desire to avoid acting up in a social setting, to health concerns.

Alcohol consumption patterns over the past decade have shown varied trends. While we have seen a 4% drinking decline in the UK (admittedly from a high base, if we’re honest), the USA has seen only a slight decrease; but Brazil is up 7%. And when you dig a bit deeper, the direction of travel isn’t so clear cut: the USA has seen a rise in alcohol consumption among people aged 55+ over the last decade. As ever, trends look very different depending on how wide your lens is.

What is clear is that the alcohol consumption patterns are changing. It will be fascinating follow how these markets develop in the decades to come, and the strategies that companies come up with to adapt.