Growing Popularity of No- and Low Alcoholic Drinks

2022-09-22 08:33:25

The concept of Dry January came into life in 2013, initiated by a charity called Alcohol Change UK. The goal was to encourage people to go alcohol-free for the whole month and to show the long-term benefits of it. Since then, the concept of Dry January has been expanding in importance and spreading internationally. In 2022, in the UK around 14% of consumers claimed the aim to participate – an equivalent number of US Americans equally said so, reports Beverage Daily in “What we have learned from Dry January 2022?”

The report indicates that the Dry January initiative is able to increase non-alcoholic beverage sales with UK’s Tesco publishing +15% sales uplift vs. prior year in the low- and non-alcoholic beer segment. Internationally*, the market value of increased by more than 2 billion US$ since 2018 reaching close to 10 bn. US$ in 2021, as per IWSR and is estimated to grow at +8% CAGR until 2025.

Driving Consumer Appeal

According to Beverage Daily, the no- and low-alcoholic drinks space appeals to consumers driven by a health mindset and the category is expected to push further boundaries: “We’ve already seen non-alcoholic beer presented as an isotonic drink for use after sports; we’re now seeing an increasing number of fortified or funtional non-alcoholic drinks,” they comment. Whether consumers substitute an alcoholic drink with a no- or low-alcohol version from time to time, use it to unwind or after working out, the segment outlook is bright.

Developing new products and formulating no- and low alcoholic drinks with the right coloring helps to best meet increasing consumer expectations. Visual appeal not only supports the right flavor profile, it also supports the product concept and e.g. may indicate certain functional benefits. For health-minded consumers, natural ingredients are often mental shortcuts for “better-for-you” offers. Coloring foods and natural coloring solutions provide a great opportunity for brands to differentiate with great stand-out on a crowded NOLO and alcoholic drink shelf. Discover a wide range of naturally colorful opportunities for your next no- or low alcoholic beverage here or request a consult with Sensient’s experts today here.

*countries included: Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, the United Kingdom, and the United States

Read below the full article on “What we learned from Dry January?”