‘Low-no alcohol is not a fad’

Gen Z is causing a shake up in the alcoholic industry owing to their mindful drinking and sober curiosity, leading to better sales of low and no alcoholic drinks.

According to Euromonitor, Gen Z – the generation born between the mid-1990s and early 2010s – has displayed a noticeable trend of reduced alcohol consumption compared to previous generations.

“From non-alcoholic beer, already present and embedded in drinking culture for decades yet still witnessing an enviable 6 per cent total volume growth for 2022, to the emerging non-alcoholic wine segment posting 9 per cent total volume growth and from the double digit momentum of the relative newcomer non-alcoholic ready to drink (RTDs), to non-alcoholic spirits spearheading innovation and a pivot to functionality with a 10 per cent total volume growth, this is all proving to be much more than just a passing fad,” reports quoted the company’s head of alcoholic drinks, Spiros Malandrakis, as saying.

Gen Zers prioritise physical and mental wellbeing, often engaging in regular exercise and prioritising nutritious diets. The research firm also says the younger generation place significant value on authenticity and experiences.

Gen Z is leading the way when it comes to “mindful drinking and sober curiosity, moderation initiatives, dry venues and events, no/lo focused retailers and a cornucopia of launches and innovation that is blurring the definitional lines between the alcoholic and non-alcoholic universes”, explains Malandrakis. “There is little doubt that the once niche trend is now established, evolving and yet still holds huge untapped future potential.

“For younger cohorts who would historically be at the forefront of high energy occasions and high-volume alcohol consumption, the theme of moderation is also a key part of the ubiquitous ‘less but better’ premium mantra.”

Euromonitor’s comments follow closely another report stating that sales of no- and low-alcohol beer are experiencing a summer surge.

Tesco said sales of no- and low-alcohol beer were 25 per cent higher in June than they were at the start of the year – showing that going booze-free is increasingly moving well beyond being just a “dry January” trend.

Guinness said that it would almost triple production of its zero-alcohol brand in response to a growing consumer taste for non-alcoholic drinks. British Beer and Pub Association also reports 23 per cent jump in sales of low and no-alcohol beer. The alcohol-free brand Lucky Saint said it had seen its volume growth rocket by 180 per cent in the last year.