04/16/2023
Did you know that the no/low-alcohol category has been growing rapidly due to increasing consumer demand?
According to a recent study by IWSR Drinks Market Analysis, the no/low wine category has grown by more than seven per cent in volume across 10 key global markets in 2022.
Furthermore, it is expected that the pace of growth of the no/low-alcohol category will surpass that of the last four years, with a forecast volume CAGR of 7%, 2022-26, compared to 5%, 2018-22.
Interestingly, no-alcohol (NA) products are spearheading this growth, expected to account for over 90% of the forecast total category volume growth.
Among the 10 focus markets examined in the study, the market value of no/low alcohol products in 2022 surpassed $11 billion, up from $8 billion in 2018!!
This is exciting stuff!
There is money to be made here and as hospitality leaders we need to embrace this new market segment and make sure we are not leaving valuable sales on the table.
The study also found that no-alcohol volumes grew 9% in 2022, increasing their share of the overall no/low-alcohol space in the world’s 10 leading no/low markets to 70%, up from 65% in 2018.
Improved taste, production techniques, and a diversification of consumption occasions, are driving no-alcohol’s dominance over low-alcohol in many markets.
It's clear by demand that people are interested in having quality no/low options and are driving this new market segment forward. We can no longer ignore this trend because it isn't going anywhere.
While the largest age group of no/low consumers right now is Millennials, 78% of consumers of no/low products also drink full-strength alcohol.
The largest subset (41% of no/low consumers) are classified as ‘substituters’, who choose no/low products when avoiding alcohol on certain occasions.
Some also refer to 'zebra striping' while drinking, choosing to balance their overall alcohol consumption with no/low options in between.
However, ‘abstainers’, those who refrain from drinking alcohol altogether, now account for 18% of no/low consumers, and their numbers are rising in most markets.
With so much attention being given to health and wellness and the newly announced drinking guidelines in Canada we are going to see a growing push towards quality no/low options in every drink category and enhancing your bar menus is in the best interest of your business, your guests, and your team.
However, one of the biggest challenges facing the no/low category is availability, as in many markets, no/low products lack visibility.
In the mainstream on-trade, and among retailers, there is often confusion about where they should be displayed. We are seeing alcohol-free guests are looking for inclusive menus that create a similar experience for them while dining. We do this by masterfully weaving no/low options into beverage menus the same as our alcoholic offerings and then educating our service teams to be able to help influence the guest's decision.
Despite the lack of visibility, we are seeing an uptick in the prominence of these items and I believe cost has become less of a barrier for non-consumers of no/low-alcohol, dropping from 14% in 2021 to 7% in 2022.
Hospitality venues have a unique opportunity here to enhance their offerings and get ahead of the curve. We can see the trend and it's time to act by embracing the no/low segment and leading the industry forward with a new perspective on inclusive beverage options.
Creating balanced menus that include no/low options needs to be at the forefront of your marketing and menu strategy, setting yourself apart from the crowd by making sure your alcohol-free guests no longer feel like an afterthought.
It is important to know exactly how to incorporate these items with flair, and consistency to maximize your traction and NET Hospitality Consulting is here to help you do just that.
With the experience, knowledge and education you are looking for for your enhanced menu needs, consider a consultation call to see how exactly you can start to capture the benefits of this emerging trend quickly and efficiently.
DM me today and get this conversation moving forward so you can start to see the benefits to your bottom line - as an expert in the no/low market segment and with 20 years of experience creating diverse, exciting and profitable menus, I would love to help you get set up and further educate your team to make this change a wild success that sets you above the rest.
