Retailers must extend and elevate their low- and no-alcohol ranges over the Christmas period to capture a larger share of young consumers’ festive spending.
Gen Z’s changing social attitudes mean such drink options are viewed as desirable choices, rather than substitutes for alcoholic beverages, and over four-fifths of them* say low- and no-alcohol drinks allow them to prioritize health & wellbeing without compromising on taste or social interactions, according to GlobalData, a leading data and analytics company.
Charlotte Chilcott, retail analyst at GlobalData, comments, “Christmas has traditionally been synonymous with socializing with alcoholic beverages, but for many younger consumers, the social norms around alcohol consumption are shifting.
"For these consumers, low- and no-alcohol drinks can be just as enjoyable as traditional alcoholic options. They are a deliberate, enjoyable choice that satisfies taste, social and wellbeing goals.
"While Gen Z has not abandoned alcohol altogether, retailers that can cater to both alcoholic and low- and no-alcohol preferences will win a bigger slice of seasonal sales.”
The surge in spending is being driven by improvements in quality and variety, with almost 60% of 16-34-year-olds citing these as reasons for increasing their spending in the category.
Chilcott concludes, “Younger shoppers are responding to enhanced flavor profiles and a broader range of options in the low- and no-alcohol category.
"This preference provides an opportunity for retailers to offer novelty seasonal products over the Christmas period, such as low- or no-alcohol mulled wine, festive spritzes, non-alcoholic sparkling wines and spiced ciders, to deliver familiar rituals and flavors without the alcohol.
"Retailers should ensure these products are promoted within Christmas and party displays, alongside mixers, glassware and gifting options to encourage further spend from related categories.”