low-alcohol and non-alcoholic Retail Opportunity

Recent forecasts indicate that the low-alcohol and non-alcoholic segment within the ready-to-drink (RTD) cocktails category is poised for significant expansion. This growth is driven by a heightened consumer focus on health, wellness, and mindful drinking. Here’s an overview of the current trends and future projections in this rapidly evolving segment:


Current Trends and Growth:

  • Segment Expansion: The low-alcohol and non-alcoholic RTD cocktails are expected to experience substantial growth. This trend is fueled by increasing consumer interest in healthier lifestyle choices and a broader movement towards mindful drinking. The RTD market is diversifying, incorporating a wider range of non-alcoholic and low-alcohol options.


  • Market Share Projections: According to recent industry reports, non-alcoholic and low-alcohol RTD cocktails could constitute approximately 20% to 30% of the total RTD market by 2028. This represents a significant increase from current levels as these beverages gain traction among consumers.

Yearly Growth Trends:


  • 2023 to 2025: The low-alcohol and non-alcoholic segment is forecasted to see accelerated growth, with market share expected to rise from about 10% to 15% in 2023 to around 15% to 20% by 2025.
  • 2026 to 2028: Continued expansion is anticipated, with this segment potentially reaching 20% to 30% of the RTD market by 2028, reflecting ongoing consumer trends and a broader range of product offerings.


Factors Driving Growth:


  • Health and Wellness: The increasing emphasis on health and wellness is prompting more consumers to seek out low-alcohol and non-alcoholic options.
  • Product Innovation: The availability of high-quality and innovative non-alcoholic RTD cocktails is enhancing their appeal to a broader consumer base.
  • Social Acceptance: The growing acceptance of mindful drinking is further driving demand for non-alcoholic beverages.


Conclusion:

The low-alcohol and non-alcoholic RTD spirits segment is set to experience significant growth in the coming years. With projections suggesting that this segment could account for 20% to 30% of the RTD market by 2028, the increasing consumer demand is a result of health trends, product innovation, and the broader acceptance of mindful drinking. This presents a substantial opportunity for retailers to align with evolving consumer preferences and capture a growing market segment.


Recommendation:


To strategically capitalize on this trend, retail procurement leadership should consider the following actions:

  1. Expand Product Range: Broaden your inventory to include a diverse selection of low-alcohol and non-alcoholic RTD options. This will cater to a wide array of consumer preferences and enhance market appeal.
  2. Focus on Quality: Invest in high-quality and innovative products that offer sophisticated flavors and premium ingredients. This approach will attract discerning consumers and differentiate your offerings.
  3. Promote Awareness: Develop and execute marketing strategies that emphasize the benefits and availability of low-alcohol and non-alcoholic beverages. Educate customers on the health and lifestyle advantages of these options.
  4. Monitor Trends: Stay abreast of market trends and evolving consumer behaviors to adapt your product offerings and maintain a competitive edge.


By aligning your retail strategy with these trends, you can effectively tap into the growing demand for low-alcohol and non-alcoholic RTD spirits, driving both customer satisfaction and business growth.


Enhance Your Procurement Strategy with First Step Beverage

First Step Beverage offers a portfolio of innovative adult beverage brands and solutions. Partnering with us allows you to access cutting-edge options that can delight your guests and give you a competitive edge by being first to market with emerging trends. Our extensive industry experience ensures that we provide vetted, high-quality recommendations backed by our reputation.


Michael Halsey

FirstStepBeverage Co / Chief Operations Officer


Resources: Market research sources Euromonitor, IWSR, Grand View Research

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