Key Statistics and Trends for the US No-Alcohol Market

Market performance

• The US no-alcohol market is forecast to grow by 18% volume CAGR, 2024 to 2028. This marks a slightly slower rate versus previous years.
• The total no-alcohol market in the US will be worth close to $5bn by 2028.
• No-alcohol beer is the primary volume driver, due to market maturity and investment in new brands. High growth rates for no-alcohol RTDs have helped the segment achieve its highest volumes to date.
• Looking ahead, no-alcohol categories outperform their full-strength counterparts across all segments.
• The fastest growth rates will be in less mature segments with lower volume bases, such as no-alcohol RTDs and alcohol adjacents, which will both see volume CAGR growth of over 20%, 2024-2028.
• No-alcohol spirits is expected to grow at 18% volume CAGR, 2024-2028, benefitting from heightened awareness through new product launches.
• No-alcohol wine will expand through its established core consumer base, reflecting its greater maturity.
• The established no-alcohol beer category will see 17% volume CAGR growth to 2028.

Premiumisation

• Premium-and-above price products have been the primary drivers of growth in the more established segments of no-alcohol beer, wine and spirits.
• No-alcohol wine has seen substantial growth, driven by the expansion of established value brands and the entry of premium-and-above newcomers.
• Premium-and-above no-alcohol spirits hold the largest share of any segment price tier, excluding RTDs, all of which reside in standard.

Consumer attitudes

• Millennials hold the largest share of no-alcohol drinkers by age cohort. They are also the age group that trialling across different no-alcohol subcategories the most.
• Gen Z of legal drinking age, who drink no-alcohol products, are more likely to be occasional moderators, while Boomers who drink no-alcohol products, are more likely to abstain from alcohol than other generation cohorts.
• New entrants and younger buyers are driving the increase in consumption frequency of no-alcohol products.
• Motivations for choosing no-alcohol beverages remain stable, with limiting alcohol intake and health the dominant reasons

Barriers to growth

• Availability, price and taste remain challenges.
• Boomers’ expectations for lower prices conflict with the higher production costs of most no-alcohol products.

Innovation

• Efforts to replicate alcohol experiences now extend beyond taste, as no-alcohol innovators, such as AF, GABA Labs, and Sentia, use botanical and synthetic compounds to mimic alcohol’s effects without the hangover.
• Sober celebrities are reshaping the industry, promoting greater social acceptance to sobriety. Increased investment in the space comes from influencers including Tom Holland and the Delevingne sisters.