25 Aug 2024 More on the moderation trend
No-alcohol beer, wine, gin, tequila and “mocktails” are where much of the growth is today for the drinks industry.…
A sector in the past seen as pretty resilient is not having the best of times overall. Global alcoholic drink sales fell 1% by volume, though rose 2% by value, last year, says drinks research group IWSR.
Spirits volumes in the key US market fell, by 2%, for the first time in nearly 30 years. But US no-alcohol volumes jumped 29%, and global no-alcohol beer volumes grew 6% in 2023, wine by 7% and spirits by 15%. Growth in no/low alcohol drinks is expected to be roughly five times that of total alcoholic beverages in 2023-28.
What the trade calls the “mainstreaming of moderation” partly reflects belt-tightening due to cost of living pressures; the drinks industry did, arguably, push price rises too far in the good times, spending years encouraging people to trade up to “premium” brands. Most age groups, too, are increasingly more preoccupied with health concerns.
But drinking is in striking decline, above all, with millennials and Generation X. Almost a third of British 18- to 24-year-olds report drinking less than they did a year ago, the consultancy CGA has found, with 13% completely abstaining. A suitably Gen X-sounding label, “sober curious”, has attached to the trend — which cleverly badges the spurning of guilty pleasures as a form of experimentation in itself.
There is also an element of anti-parental rebellion here; some young people see drunkenness as simply uncool. Many are much more weighed down, too, than earlier generations by student debt and housing costs, and savvier about wellbeing. And those who live so much of their lives online are wary of getting so plastered that they can’t remember what they were doing (even if, for their parents, this was often the aim).
As well as no/low alcohol drinks, many young people are turning to cheaper, less hangover-inducing alternatives including cannabis (Gallup says use almost doubled in 18- to 34-year-olds in the US in the past decade) or other soft drugs, or “functional” drinks.
These may be infused with CBD oil, or adaptogens or nootropics — plants or mushrooms said to deliver effects such as reducing inhibitions or unleashing creative freedom.
There are consolations for hard drinks makers. One is that as they become more adept at producing no/low alcohol drinks that actually taste like the real thing, or at least are satisfying to drink, they can introduce them as sub-brands of brands they have spent decades investing in — or harness their brand-building expertise to create new ones.
Another, says IWSR, is that the main segment losing out to no-alcohol drinks is not full-strength beverages but other non-alcoholic options such as water or soft drinks.
Where is this trend headed? Some traditionalists might bemoan the shift towards alcohol-free options, seeing it as part of a broader trend of removing key ingredients from various foods and drinks.
Yet, if these alternatives provide enjoyable taste experiences for those who need or choose to limit their alcohol intake, this shift can be seen positively. Ultimately, if moderation and the availability of alcohol substitutes allow people to enjoy social activities with fewer negative consequences, it’s worth “cheersing” with a glass of alcohol-free bubbles
Related reading: More on the ‘sober curious” trend
The ‘sober curious’ movement is not just a fleeting trend. It’s a shift in the way people and generations are interacting with and thinking about alcohol use. The movement refers to individuals becoming more mindful of their alcohol consumption without necessarily committing to complete abstinence. It’s about questioning the role of alcohol in one’s life and exploring a healthier relationship with drinking. Forbes.com, read more