US Alcohol Alternatives Market Report 2024

As the market continues to grow, just one-quarter of consumers are purchasing the same alcohol alternatives on a regular basis and less than half express satisfaction with options at and AFH, an indication that there is continued desire for innovation, availability and the opportunity to win consumer routines.

Moderation is personal for consumers, and there is a still a gap between consumer action and intention. Alcoholic beverages are still most strongly associated with relaxation and social occasions, and alternatives must continue to compete to prove how they can fulfill consumer needs. Showcasing how alternatives can work not only as substitutes in these occasions but also alongside alcohol can remind consumers of value through the ability to customize, complement flavors and promote balance.

Engagement differs notably across demographics. Younger consumers actively seek NA options more closely mirror alcohol in taste and experience, often using them to craft mocktails or complement social occasions. However, older consumers remain less convinced, especially when faced with higher price points, highlighting an opportunity for brands to address their preferences. Natural, familiar flavors, longevity-focused benefits, and authentic messaging could drive greater appeal for this group in particular.

This report looks at the following areas:

Continued interest in moderation requires alternatives to deliver value on flavor, function and transparency to compete for consumer spend and enter into routines.

Sydney Riebe, Analyst – US Food and Drink

Market Definitions

This Report examines consumption and attitudes toward both alcohol alternatives and alcoholic beverages. Alcohol alternatives refer to any beverage consumers drink as a replacement in traditional alcoholic beverage consumption occasions. For the purposes of this Report, Mintel has grouped alcohol alternatives into four categories:

• Cannabis/CBD drinks, ie, beverages that contain either THC or CBD*
• NA (non-alcoholic) drinks, ie, non-alcoholic beer, wine, and spirits.
• FANBs (functional adult non-alcoholic beverages), ie, non-alcoholic beverages consumers drink as a substitute to alcohol that contain functional ingredients specifically chosen to provide consumers benefits desired during alcohol consumption occasions (excludes cannabis/CBD drinks).
• ANBs (adult non-alcoholic beverages), ie, non-alcoholic beverages consumers drink as a substitute to alcohol (excludes cannabis drinks, NA drinks, and FANBs).

• Cannabis/CBD drinks examples include: CANN, Recess, Pamos, Keef Sodas and Veryvell.
• NA (non-alcoholic) drinks examples include O’Doul’s, Athletic Brewing Co., Fre, Giesen 0%, Seedlip and Ritual Zero Proof.
• FANBs (functional adult non-alcoholic beverages): examples of functional ingredients commonly found in FANBs include: adaptogens, nootropics, l-theanine, and ingredients said to promote the production of neurotransmitters. These beverages often claim to provide consumers energy, help consumers relax, reduce stress, boost mood, etc. Examples include Kin Euphorics, De Soi, Hiyo, and Moment.
• ANBs (adult non-alcoholic beverages): While any non-alcoholic beverage could be considered an alcohol alternative, ANBs refer to beverages that are either marketed directly as alcohol alternatives or are often consumed during traditional alcoholic beverage consumption occasions; ANBs often feature premium packaging design and/or come in unique adult-friendly flavors. Examples include Liquid Death, Barbet, Betty Buzz, H2OPS and mocktails.Beverages such as milk, Coca-Cola, and lemonade would not be considered ANBs because they are generally enjoyed by both adults and children.