Cheers to Change: Why Non-Alcoholic Drinks Brands Are Here to Stay

As people rethink their drinking habits, non-alcoholic beverages are stepping into the spotlight—not merely as a trend but as a significant aspect of the social scene. This increasing demand for non-alcoholic options reflects a broader cultural trend toward mindful consumption, making these drinks essential at gatherings and celebrations.

In response, the global beverage industry has begun an unexpected shift as consumers increasingly seek non-alcoholic options.

According to the RAC Report on Motoring 2024, the pandemic and subsequent lockdowns resulted in permanent changes in attitudes to drink-driving. The 2023 report revealed that 28 per cent of drivers between 17 - 24 consumed non-alcoholic drinks while 35 per cent of over 65-year-olds claimed the same.

Major drinks-makers like Diageo, Pernod Ricard, Carlsberg and Heineken have responded by creating tasty non-alcoholic alternatives, which are a far cry from the limited alcohol-free offerings of the past.

Over the last few years, Diageo has given us Guinness 0.0, Gordon's Gin 0.0 and Captain Morgan's 0.0. Corona Cero came along in January 2022 while Heineken 0.0 first hit the UK in 2017 and Molson Coors' Staropramen 0.0 and Carlsberg have also followed suit.

Meanwhile, smaller brands such as Seedlip, Pentire, Loah, and Days Lager have carved out their niche by focusing exclusively on non-alcoholic beverages, too.

"It’s hard to know which came first – an alcohol industry determined to make every drink an occasion or our own social instincts to ritualise drinking," says co-chief and chief strategy officer of Accenture Song, Will Hodge.

Drinks brands going dry

However you look at it, the art of crafting the perfect pairing of drinks and occasions has become a cornerstone for building successful businesses, creating brand empires, and launching memorable creative campaigns Hodge explains.

"Occasion-based brand strategies have long underpinned marketing efforts, prompting us to express our aspirations through the beverages we select and the moments we choose to savor them. Whether you’re anticipating a cozy ‘bathtime wine’ tonight, reminiscing about that ‘Gatwick airport eye-opener’ from your last holiday, or recalling the countless ‘quarantini quizzes’ that kept spirits high during lockdowns, these drinks have a way of encapsulating our experiences and identities. As we raise our glasses, we don’t just toast to the moment—we toast to the stories and aspirations they embody."

As health consciousness rises and the desire for moderation takes centre stage, brands are responding to a new wave of demand that prioritises well-being without sacrificing social experiences.

The current landscape of the non-alcoholic beverage market reflects a burgeoning interest that extends beyond a healthy alternative, positioning itself as a player in the global alcohol sector. Representing around one per cent of global alcohol sales, this market is valued at approximately $20 billion, according to Bernstein Research. Despite this relatively small footprint, the market is showing signs of significant growth potential. And with events such as Euro 2024 showing an increasing interest in 'NoLo' (no and low alcohol) beverages, the demand for these drinks is rising.

A major success in this space is Guinness 0.0. Launched in July 2021, it experienced a 50 per cent increase in supermarket sales following its St Patrick's Day campaign last year. The winner of the IPA's President’s Prize for Next Generation Brand Building, the brand has also secured a global £40 million partnership with the Premiere League while the product's presence expanded significantly, with 150 more pubs permanently carrying Guinness 0.0 and orders of kegs increasing by 160 per cent.

During Euro 2024, Ocado reported a 20 per cent jump in non-alcoholic and low-alcohol spirits, while alcohol-free wines were up by nine per cent. Non-alcoholic and low-alcohol beers, along with canned cocktails, also saw a rise, with sales increasing by seven per cent and six per cent respectively.

Mark Sandys, chief innovation officer at Diageo, reveals a growing desire among consumers for social participation without the drawbacks of alcohol.

"It’s still early days," Sandy's said. "In the grand scheme of things, Guinness 0.0 is still relatively small compared to global Guinness sales, but who knows where it will go. The pace at which it’s grown in recent years has been impressive. One of the challenges has been keeping up with demand—we’ve had to expand capacity to meet it."

There has been a noticeable shift in British culture regarding drinking, particularily post-covid. People are increasingly recognising that you don't need to drink when you go out.

Professor Jonathan Wilson, a leading academic in brand strategy and culture, currently in residence at Regent's University London, says that by offering alcohol-free versions of popular beverages, brands can retain customers who reduce their alcohol intake while attracting new ones.

"But what brands are proposing is offering the same taste without the alcohol. It’s a more intelligent approach. Not only can you retain customers, but you can also attract a broader audience because you’re normalising both your beverage and the idea of not drinking alcohol."

As makers like Diageo invest heavily in marketing initiatives, including its Premier League partnership, the non-alcoholic beverage sector is proving not just a fad; it is becoming a formidable force reshaping drinking culture.

Bea Farmelo, strategy director at AMV BBDO, points to the rapid growth of the NoLo category, driven by shifting generational habits. Gen Zers are drinking less than millennials, who in turn drink less than previous generations. This trend is influenced by heightened awareness of the health and mental impacts of alcohol consumption, a more cautious attitude toward risk, and the social normalisation of non-alcoholic choices.

"To win, brands need their NoLo options to feel like a legitimate choice in their own right, not a compromise or punitive," insists Farmelo. "Innovations need to be high quality, so the drinking experience still provides the indulgence people are looking for."

So how are non-alcoholic drinks being promoted without their marketing coming across as a public service announcement?

Fun Over Function

The concept of low and non-alcoholic drinks is far from new. In the 1980s, options like Kaliber, a low alcohol pale lager brewed by Guinness emerged on the market. And despite poster stunts that involved Scottish comedian Billy Connolly and Wonderbra, marketing strategies often leaned heavily on a stripped-back, no-fun aesthetic.

"If you look at some of the things we launched in the past, it was all very minimal, with a lack of colour, very rational and functional messaging, and it just didn’t work," admits Sandys.

Wilson insists that brands shouldn’t overthink the need to label themselves as "'alcohol-free' or focus too much on promoting health benefits.

"Going down the 'healthy eating' route might not be the best approach," he explains. "Instead, they should emphasise that these drinks are fun and just as enjoyable, if not more so. The key is to stand by this message and make it clear that alcohol-free options can offer the same level of fun."

Social Inclusion

People are seeking the feelings of social inclusion they get from a ‘traditional’ night out, adds Farmello. It's easier to opt for a zero-alcohol beverage when peers are doing the same.

"With this shift comes new codes, behaviours and language around consumption - mindful drinking, damp January, Cinderella nights (where people stop drinking at midnight)," she explains. "What’s clear is that this new approach to drinking isn’t all or nothing. It’s more about cutting back, than cutting out."

She continues: "Increasingly, you’re seeing dance events, pub nights and social spaces popping up that promise a good night out, minus the alcohol."

Research by Diageo found a lot of non-alcoholic drink consumption happens at the weekend rather than during the week. Sandys remarks how these consumers just want to remain part of the social occasion.

"Previously, the only options were water or carbonated soft drinks, which made it feel like you were no longer part of the event. It was as if you were wearing a big sign saying, 'I'm not drinking tonight,' and people would often ask about it.

"Our research revealed that when drinking water or soft drinks, you tended to drink at a different pace from others in your group. You’d finish your drink quickly, which meant you felt excluded."

Offering non-alcoholic alternatives that closely resemble their alcoholic counterparts, like a pint of Guinness or a Tanqueray and tonic, allows consumers to stay part of the social occasion without missing a beat.

Sandys notes that this trend is particularly noticeable in Ireland where Guinness 0.0 is becoming a common sight in pubs.

"People tend to alternate drinks during a night out, and that’s where the magic happens. The fact that the liquid is so similar to Guinness means you can do this without really noticing and stay engaged in the social experience."

Non-alcoholic options that mimic the experience of traditional drinks help maintain that social bond, allowing people to engage in the moment without feeling left out. This desire to stay connected is fueling the rapid growth of the category.

However, brands shouldn't focus too heavily on the fact that it's alcohol-free, claims Wilson. "That can come across as a bit nannying."

He adds: "If you can make people believe that it’s not the alcohol giving them those positive experiences, but rather the brand, the atmosphere, or the place they’re hanging out, then that’s a huge influence," he continues.

Campaigns driving non-alcoholic brands

As consumers increasingly seek alternatives that allow for social participation without the drawbacks of alcohol, brands are responding with innovative non-alcoholic offerings. Sandys notes that Diageo always aims to encourage people to drink better, not more. This represents a significant shift and it still sees plenty of growth potential.

He cites the "incredible success" of Guinness 0.0. as a demonstration of consumer demand that benefits both customers and retail partners.

"We started looking at other categories doing healthier versions in a fun and vibrant way and tried to learn from that," explains Sandy's. "'Singing Pints' was all about the joy of the occasion with Guinness 0.0, rather than trying to be serious or leaning on the “good for you” type of messaging. It was more about celebrating the moment."

In collaboration with AMV BBDO, this St Patrick's Day campaign conveys a message of moderation and encourages consumers to sample the non-alcoholic beer.

Guinness 0.0 is now seen as part of the wider cultural shift toward moderation. It has become a brand most associated with responsible drinking, a growing priority for both consumers and brands.

The success has boosted sales at Diageo and now plays a pivotal role in changing attitudes toward alcohol-free options, making it a respected choice even on key occasions like St. Patrick's Day.

Similarly, with Tanqueray Zero in Spain sponsoring Atlético Madrid, Sandys explains that it was about tapping into a different occasion and embracing the moments that consumers enjoy, rather than sticking to the purely rational side of what the product is.

In 2023, Asahi Super Dry, the official beer of Rugby World Cup 2023, introduced Asahi Super Dry 0.0. With its standout silver and blue branding, this non-alcoholic version claimed the same super dry taste and innovative spirit of modern Japan that the brand is known for.

Every moment of the ad was crafted to capture consumer attention and encourage repeated viewing, inviting viewers to learn more about the product, brand, and Japanese spirit.

This aligns with Asahi Europe and International's Legacy 2030 goal of having 20 per cent of its portfolio consist of alcohol-free products by the decade's end, providing consumers with greater choice for various preferences and occasions.

Heineken has made strides in the NOLO space by sponsoring events like Formula One and the Champions League, normalising its presence.

"The Germans have been ahead of the curve for a long time," said Wilson. "They've always offered a wide range of beer alternatives, especially blonde beers."

While it might seem contradictory to have a beer brand sponsor Formula 1, many of Heineken's ads within this partnership have recently been centred around its zero alcohol offering.

Heineken has made effective use of brand ambassadors like Max Verstappen and Sergio 'Checo' Pérez Mendoza in its ads.

Its social responsibility campaign, 'When You Drive, Never Drink' creatively tackles responsible drinking by enlisting Perez in a social experiment. As a taxi driver with hidden cameras capturing the reactions of unsuspecting passengers, Perez initially surprises them, but tension builds when they see him casually drinking beer while driving. The moment of panic turns to relief when it’s revealed that the beverage is Heineken 0.0.

Through this collaboration, Heineken illustrates that enjoying life and making responsible choices are not mutually exclusive, reinforcing the notion that fun and accountability can go hand in hand.

The trend of incorporating non-alcoholic beverages into sporting events is also on the rise, with major occasions like the Summer Olympics and Euro 2024 increasingly embracing the zero-alcohol movement by partnering with non-alcoholic beer brands.

A sporting change

Historically, sporting events have been prime targets for alcohol brands eager to capitalise on the enthusiasm of captive audiences celebrating special occasions with their favorite drinks.

"Something changed. People stopped drinking so much," Accenture Song managing director, Will Hodge notes. "It's easy to blame on Millenials or Gen Z but moderation suddenly became cool. ‘Sober curious’ became more than a fleeting hashtag, it became a social identity. It’s not just about health; it’s about self-image, avoiding hangover regret – both in real life and online.

"Why has this been particularly prevalent after the Euros? Perhaps it’s because fans of British football used to drink to forget but now finally have something they want to remember," he adds.

At Paris 2024, Corona opted to sponsor the Games with its non-alcoholic brand, Corona Cero, instead of its traditional alcoholic offering. Similarly, Heineken 0.0 played a significant role as a partner for Euro 2024. This shift reflects a societal push towards healthier lifestyles and inclusivity while still celebrating the thrill of these events.

The Challenges Ahead

While there is unquestionably a growing movement here, challenges persist. For instance, while brewers have made strides with zero-alcohol beers—accounting for more than 10 per cent of sales in countries like Slovakia, Germany, and Spain—achieving similar success in the wine and spirits categories remains elusive.

Captain Morgan's was Diageo's first foray into the dark spirits category. One of the key lessons learned was the importance of getting the liquid right so that it was replicable and suited to the appropriate serve

Sandys noted, “Creating a non-alcoholic spirit that retains the essence of its alcoholic counterpart requires innovation and a deep understanding of flavour profiles. It’s not just about removing alcohol; it’s about enhancing the overall experience.” Those complexities have yet to be fully resolved, particularly for spirits with difficult-to-replicate flavour profiles.

In the UK, the perception of non-alcoholic drinks is still developing. In contrast, countries like Japan don't view a choice of 0 per cent drinks as significantly different from choosing alcoholic ones.

Wilson notes that Japan provides a great case study. "For years, they've offered alcohol-free versions of popular beers like Asahi. The collectivist culture in Japan means people don’t want to stand out, so having an alcohol-free option allowed them to participate without drawing attention to themselves. The Japanese didn’t market it as just an alcohol-free alternative—they positioned it as simply Asahi, with varying percentages of alcohol."

When people are out at a bar in Japan, they simply enjoy their drinks without any preconceived notions.

"That's such a big thing in the UK" adds Sandys. "When we launched Captain Morgan 0.0, the ad campaign we used was called 'Why You Whying.' It picked up on a meme around that idea and focused on the insight that, often, if you say you're not drinking, people will respond with, 'Well, what's wrong with you?' What we were trying to do was give consumers confidence about their choice and provide them with a way to push back against that question."

The campaign emphasises the brand's commitment to offering a product that retains the familiar flavours of Captain Morgan while catering to consumers seeking moderation. By focusing on fun and flavourful alternatives for social occasions, the brand aims to engage with consumers looking to enjoy the same spirited experiences without alcohol.

Sandys does anticipates a broader range of options in the non-alcoholic beverage market over the next decade. Diageo is heavily investing in research and development, focusing on both extending existing brands and launching entirely new ones, such as plant-based liquor substitute Seedlip which it acquired in 2019.

One significant breakthrough the Diageo team is pursuing is the ability to serve non-alcoholic beer on draft. It currently poses a challenge because alcohol inhibits bacterial growth, making it easier to serve traditional beer on tap.

A Future Filled With Potential

The future of the non-alcoholic beverage market appears highly promising, with potential for significant growth and innovation.

"We [UK] haven't really tapped into the low-alcohol segment yet," adds Sandys. "In Australia, there’s a substantial market for two per cent beers, and that could be something we explore more in the future.

"Right now, we're keeping an open mind about these opportunities and are ready to experiment in different areas. I’m sure that if we look ahead five years, this entire space, along with its adjacent sectors, will be significantly larger."

Hodge reflects on how successful brands can be in playing the alternative game after alcohol sales have declined four per cent over the last year, the equivalent to €2.7 billion. He points out that while Seedlip and zero per cent beers have gained popularity, their real success will come when they stop positioning themselves as alternatives to alcohol and instead become distinct, aspirational choices."

"The NoLo brands that will succeed most are those capitalizing on this shift in behaviour, recognising that they’re not just selling a drink—they’re selling self-control, sophistication, and, dare I say, a little self-respect. Not as an alternative, but as a distinct and highly motivating choice.

Hodge adds, "Lucky Saint promised to be the poster child of a different type of revolution, but where are the others?" Hodge asks. "Perhaps big breweries and big brands need to shift away from promoting the 0.0 per cent product as an alternative they can trust, instead breaking free with new and more relevant brands created with a clearer-eyed focus on the positive benefits of NoLo drinks."

Brands that step out of the shadow of occasion-based marketing to tap into deeper, more progressive insights and motivations will be the ones to answer those questions

By presenting non-alcoholic beverages as a cool and appealing choice, brands can effectively engage consumers and encourage a broader acceptance of these alternatives.

By tapping into shared experiences and social occasions, they can also cultivate a deeper connection with consumers, appealing to a desire for premium, flavourful options that fit modern lifestyles. This approach not only normalises non-alcoholic beverages but it encourages consumers to embrace these products naturally as part of their social experiences.