Low- and no-alcohol beverages continue to thrive

Consumers today are more focused on their health than ever before, and the beverage alcohol industry is taking notice. Whether it’s about wellness, balance, or exploring new flavors, the demand for sophisticated low- and no-alcohol options continues to rise, and the trend doesn’t show any signs of slowing down.

“The low- and no- trend continues to be a clear bright spot for the industry,” says Zach Poelma, Senior Vice President of Supplier Strategy and Insights at Southern Glazer’s Wine & Spirits. “With ‘better-for-you’ lower alcohol wines now over $750 million in annual retail sales, it’s clear consumers are looking for alternatives that support a balanced lifestyle.”

Health and wellness trends

Consumers are increasingly prioritizing their physical and mental health, choosing beverages that align with their wellness goals. Additionally, many of these beverages cater to shoppers looking closely at labels, such as those touting fewer calories, lower sugar, and sustainable production practices.

“The top attributes found in the highest selling brands include ‘recyclable,’ ‘100 calories or less,’ and ‘premium,’ which tell us the consumer cares about environmental sustainability, health impact, and overall quality,” says Chris Williams, Executive Vice President of National Accounts at Southern Glazer’s Wine & Spirits.

Evolving drinking habits

Studies show that Gen Z drinks 20 percent less alcohol than previous generations did at their age. Many younger consumers are embracing moderation, occasionally opting for non-alcoholic cocktails or wines and spirits with a lower alcohol by volume (ABV).

“Gen Z and Millennials are looking for something that tastes good while allowing them to control not only their calories and carbs, but also their perceived physical health and mental well-being,” says Jessica Taylor, National Program Manager specializing in Brand & Product Education at Southern Glazer’s Wine & Spirits.

The rise of sober curiosity

The idea of being “sober curious” — cutting back on alcohol without quitting entirely — is fueling this niche category’s growth. More people are reaching for alcohol-free alternatives that let them enjoy social gatherings without the buzz.

“We know low-to-no consumers are looking for the right flavor and that they still want to share the social experience of drinking with others without necessarily consuming alcohol themselves,” Williams says.

Brands are stepping up their game with products that offer the flavors of traditional cocktails without the alcohol content. The category is not only about mocktails but also zero-proof spirits and carefully crafted non-alcoholic beers, wines, and sparkling drinks. 

“Sober curious consumers have acquired a taste for zero-proof cocktails that are more sophisticated than a Shirley Temple,” Taylor says.

Not just spirits

Low- and no-alcohol wine is a way to try to meet the younger and more health-conscious consumer where they are.

“There are plenty of delicious light wines right now that are naturally lower in alcohol that will allow you to participate in a night out without missing out,” says Cindy Leonard, Executive Vice President for Fine Wine at Southern Glazer’s Wine & Spirits. “The conversation around low-and-no alcohol has been mostly focused on spirits, but wine suppliers have been working hard to craft good-quality wines that also check the low-or-no box.”

Mainstream expansion 

Non-alcoholic spirits are no longer afterthoughts on bar and restaurant menus. Brands are creating complex, high-quality alternatives that closely match the experience of traditional spirits. This has led to the rise of sophisticated zero-proof cocktails made with ingredients like non-alcoholic whiskey, tequila, and gin.

“We’re seeing more sophistication in the zero-proof category, with drinks that have complex flavors and textures that mimic the experience of drinking alcohol,” Taylor says.

Expect more no-alcohol drinks with added health benefits, such as adaptogens, CBD, and electrolytes. Plus, lower-ABV beverages like soju are gaining traction due to their unique flavor profiles.

Discover trending low- and no-alcohol beverages 

Low- and no-alcohol beverages are no longer niche. Though they only make up just over 1 percent of beverage alcohol sales, they represent a growing category reshaping the industry. As modern consumers seek balance, wellness, and drinking experiences that meet their needs, these products will continue to thrive.

Explore our portfolio of in-demand products — such as low- and no-alcohol wine and spirits — on Proof®, our online shopping platform. Not working with Southern Glazer’s yet? Learn more about becoming a customer today.