Consumers often stick to traditional beverage choices throughout the day, but non-alcoholic beverages have the potential to break free from these conventional occasions. Younger consumers, in particular, are driving the trend of “beverage blurring,” redefining how NABs fit into non-traditional events. This shift presents a valuable opportunity for brands to rethink their product positioning, marketing strategies, and new product development to better align with evolving consumer behaviors.
While rising prices pose a challenge, consumers aren’t abandoning the NAB category altogether. Instead, they’re leaning on their trusted favorites rather than venturing into unfamiliar options. During tighter economic times, innovation may take a backseat, as consumers are less likely to experiment with products they’re unsure about. For brands, the focus should shift to highlighting how NABs can provide a more affordable yet high-quality and versatile alternative to dining out, appealing to cost-conscious buyers without compromising on satisfaction.
This report looks at the following areas:
- Types of non-alcoholic beverages purchased
- Non-alcoholic beverage occasions
- Desired benefits and attributes in non-alcoholic beverages
- Attitudes toward non-alcoholic beverages
- Impact of price increases on non-alcoholic beverage purchase decisions
- Innovation and marketing in non-alcoholic beverages
Encourage consumers to explore non-alcoholic beverages as more than just routine choices by highlighting the unique experiences and benefits they offer beyond traditional occasions.
Julia Mills, Food & Drink Analyst
Market Definitions
Non-alcoholic beverages definition is inclusive of any beverage formulated without alcohol. This includes CSDs, milk, plant-based drinks, sports drinks, energy drinks, water and sparkling water, coffee, tea and other similar products.
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EXECUTIVE SUMMARY
- What you need to know
- Market predictions of future opportunities and challenges
- What consumers want & why
- Opportunities
- Link functional benefits to specific occasions to provide clarity
- Help build comfort and stability through at-home NAB occasions during times of uncertainty
- Keep caffeine-conscious consumers hooked with tailored traditional drinks
- Graph 1: NABs consumed in the morning, by generation, 2025
- Leverage the changing role of alcohol
- Alcohol and NABs can work hand in hand
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MARKET DYNAMICS
- Market context
- State of the industry
- All NAB segments see sales growth, with some growing faster than others
- Graph 2: sales of select non-alcoholic beverages, at current prices, 2025
- Shifts in reported NAB consumption reveal a slightly different trend than sales dollars alone
- Graph 3: non-alcohol beverage consumption, 2023-24
- New product launches skew towards convenience and health in NABs
- Cold is the new hot
- Graph 4: tea and coffee consumption, 2024
- Market drivers
- The impact of tariffs on non-alcoholic drinks
- Inputs for NA beverages are not immune to rising prices
- Over half of consumers face financial strain
- Graph 5: financial situation, 2025
- Larger economic pressures create a ripple effect on everyday choices
- Graph 6: how concerned are you about the following, 2025
- Consumers adapt shopping habits to navigate economic challenges
- Relationship with alcohol is put under question…
- Graph 7: attitudes toward alcohol – any agree, by generation, 2023
- …elevating NA beverages as an alternative or a complement
- Functional drinks redefine consumer expectations
- NABs may need to bring more to the table to stand out
- Graph 8: I want a non-alcoholic beverage that… – any rank, 2025
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CONSUMER INSIGHTS
- Consumer fast facts
- User profiles
- Overview of consumer groups
- Graph 9: cluster analysis of attitudes towards non-alcoholic beverages, 2025
- Older consumers value tradition, while younger consumers embrace exploration
- Graph 10: cluster analysis of attitudes towards non-alcoholic beverages, by generation, 2025
- Traditional Enthusiasts
- Curious Connoisseurs
- Innovative Explorers
- Types of non-alcoholic beverages purchased
- What you need to know:
- Classic non-alcoholic beverages continue to win consumer favor
- Graph 11: types of non-alcoholic beverages purchased, 2025
- Over 80% of consumers purchase more than three types of NABs
- Younger demographics disrupt conventional NAB consumption patterns
- Graph 12: types of non-alcoholic beverages purchased, by generation, 2025
- Gen X’s diverse beverage repertoire outshines younger generations
- Graph 13: repertoire of non-alcoholic beverages purchased, by generation, 2025
- Male consumers prefer quality and utility over quantity
- Graph 14: types of non-alcoholic beverages purchased, by gender, 2025
- Graph 15: repertoire of non-alcoholic beverages purchased, by gender 2025
- Financial struggles don’t deter consumer engagement with NABs
- Graph 16: repertoire of non-alcoholic beverages purchased, by financial situation, 2025
- Non-alcoholic beverage occasions
- What you need to know:
- Consumers are routine-driven with NABs…
- Graph 17: non-alcoholic beverage occasions, 2025
- …but opportunities for expansion still exist
- Morning cup of jo? Younger consumers think not
- Graph 18: coffee occasions, by generation, 2025
- Tea makes its way beyond nighttime rituals
- Graph 19: tea occasions, by generation, 2025
- Hold the bubbles
- Graph 20: CSD occasions, by generation, 2025
- Graph 21: sparkling water occasions, by generation, 2025
- Young adults hit the snooze on AM juice
- Graph 22: juice/juice drinks occasions, by generation, 2025
- Key benefits consumers look for in non-alcoholic beverages
- What you need to know:
- Consumer expectations for NAB benefits are lukewarm
- Graph 23: I want a non-alcoholic beverage that…, 2025
- Heavy NAB users set higher standards for added benefits
- Graph 24: I want a non-alcoholic beverage that… – any rank, by repertoire of non-alcoholic beverages purchased, 2025
- Explore beyond hydration, for the curious and the innovative
- Graph 25: I want a non-alcoholic beverage that… – any rank, by cluster analysis of attitudes towards non-alcoholic beverages, 2025
- Gen Z and Millennials rely on NABs to fill needs traditionally filled by “three square meals”
- Graph 26: I want a non-alcoholic beverage that… – any rank, by generation, 2025
- NABs with functional benefits can meet the nutritional gap when food prices rise
- Graph 27: I want a non-alcoholic beverage that… – any rank, by financial situation, 2025
- Desired attributes in non-alcoholic beverages
- What you need to know:
- Good taste and good pricing have to back up health benefits
- Graph 28: I want a non-alcoholic beverage that…, 2025
- Higher consumer spending raises expectations for taste and affordability
- Graph 29: I want a non-alcoholic beverage that… – any rank, by repertoire of non-alcoholic beverages purchased, 2025
- Curious Connoisseurs and Innovative Explorers embrace occasion-specific drinks with matching qualities
- Graph 30: I want a non-alcoholic beverage that… – any rank, by cluster analysis of attitudes towards non-alcoholic beverages, 2025
- A tepid curiosity in functional benefits surfaces among Gen Z and Millennials
- Graph 31: I want a non-alcoholic beverage that… – any rank, by generation, 2025
- Consumers across economic standing are united over their expectation for great taste in NABs
- Graph 32: I want a non-alcoholic beverage that… – any rank, by financial situation, 2025
- Attitudes toward non-alcoholic beverages
- What you need to know
- Price and calorie count are unlikely to drive significant changes in consumer purchasing behavior
- Graph 33: attitudes toward non-alcoholic beverages, 2025
- Low discovery behaviors in NABs, but social media trends could drive engagement
- Graph 34: attitudes toward non-alcoholic beverages, 2025
- Consistency wins over light users, as heavy users chase beverage experiences and offers
- Graph 35: attitudes toward non-alcoholic beverages, by repertoire of non-alcoholic beverages purchased, 2025
- Traditional NAB formats face disruption from younger consumers
- Graph 36: attitudes toward non-alcoholic beverages, by generation, 2025
- Consumers with tight budgets weigh price more carefully
- Graph 37: attitudes toward non-alcoholic beverages, by financial situation, 2025
- Attitudes toward non-alcoholic beverages
- What you need to know
- Consumers don’t come to NABs expecting health benefits
- Interest in NAB ingredients and claims correlates with beverage purchases
- Graph 38: attitudes toward non-alcoholic beverages, by repertoire of non-alcoholic beverages purchased, 2025
- Younger consumers may need some handholding to establish new habits and routines
- Graph 39: attitudes toward non-alcoholic beverages, by generation, 2025
- NABs can bridge the gap as alcohol prices rise
- Graph 40: attitudes toward non-alcoholic beverages, by financial situation, 2025
- Price elasticity in non-alcoholic beverage choice
- What you need to know
- Price increases are unlikely to drastically shift purchasing behavior
- Graph 41: If prices increase, I will…, 2025
- Increased costs make heavy NAB users consider sacrifices
- Graph 42: If prices increase, I will…, by repertoire of non-alcoholic beverages purchased, 2025
- Young consumers are more poised to adapt to rising prices, though behaviors may diverge
- Graph 43: If prices increase, I will…, by generation, 2025
- When prices climb and budgets pinch, NABs might face the ax
- Graph 44: If prices increase, I will…, by financial situation, 2025
- Attitudes toward non-alcoholic beverages
- What you need to know
- Simple ingredient lists speak louder than health benefits
- Graph 45: attitudes toward non-alcoholic beverages, 2025
- Less is more when it comes to brand promises
- Graph 46: attitudes toward non-alcoholic beverages, 2025
- Young consumers are more keen on functional drinks but they may be harder to impress
- Graph 47: attitudes toward non-alcoholic beverages – any agree, by generation, 2025
- Tight budgets keep consumers focused on the essentials
- Graph 48: [no title]
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INNOVATION AND MARKETING STRATEGIES
- Launch activity and innovation
- Increase in launches with health claim launches enhances permissibility across occasions
- NABs go all in on indulgence with dessert-inspired flavors
- Dessert flavors transform NABs into sweet, indulgent moments
- Graph 49: [no title]
- Brands shrink packaging and think “outside the can”
- Alcohol-inspired NABs take popular flavors beyond the bar
- Brands stack benefits to the max
- Marketing and advertising
- Fairlife inspires solution-oriented creativity with beverage blurring
- Brands create links between NABs and popular TV show moments
- NABs seize opportunities in conventional alcohol territories
- La Colombe highlights foodservice quality everywhere, anytime
- Liquid Death brings the fun sans the hangover
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APPENDIX
- Market definition
- Consumer research questions
- Consumer research methodology
- Cluster analysis methodology
- Repertoire analysis methodology
- Generations
- Abbreviations and terms
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