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High on Non-Alcoholic "Spirits"

With a 200% share in 2021, the non-alcoholic 'spirits' market is one of the fastest-growing subcategories. Despite the category's 0.3 percent share of the overall alcohol market, retailers are eager to retain them.

The mocktail trend is one of the main drivers of this movemeny, as people try to create their favorite beverages in a healthier, alcohol-free way. New product releases are more closely aligned to the quality and taste of regular spirits offerings, which has driven development in this category.

Furthermore, in 2021, majority of non-alcoholic'spirit' consumers were female, with millennials accounting for more than 60% of the total. Last year, Gen X accounted for 22% of non-alcoholic purchases, while Gen Z and baby boomers combined accounted for 8%.

Web searches for non-alcoholic beverages are up 47 percent over the same month last year, according to Tastewise (a food and beverage data analysis group), after reaching an all-time low in April 2020. Non-alcoholic beverage mentions at restaurants and bars have increased by 52% year over year, according to Tastewise.

According to marketing research firm Fior Markets, the global non-alcoholic beverage industry is predicted to increase from $923 million in 2020 to more than $1.7 trillion by 2028, rising at a compound annual growth rate of 7%.

The average price per unit of non-alcoholic 'spirits,' which is US$28.60, is somewhat higher than the average price per unit of liquor, which is US$28.10, indicating that customers are ready to pay a higher price for the subcategory.

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