The booze industry is undergoing a transformation as non-alcoholic drinks emerge as a massive growth area. Asahi think that non-alcoholic beverages will make up 50% of their sales by 2040. That’s one hell of a shift.

This change is clearly driven by consumer preferences, particularly among younger demographics, prioritising health and quality of life over the traditional heavy night out.

So the industry faces a massive challenge: how do you stay relevant beyond functional benefits? Research from Synqrinus North America identifies this as a leading barrier for brands in growing their non-alcoholic drinks sales. How can brands overcome this?

First, understand the shift

The changing consumer landscape is characterised by a decline in alcohol consumption and a rise in demand for premium non-alcoholic alternatives. Sure, economic factors like tax increases further compound this trend. But consumers, especially the younger generation, have shifted their priorities towards health-conscious choices and are seeking drinks that align with this lifestyle

Drive relevance

First, relevance in this market isn’t something you’re going to be able to achieve by talking only about the product. Creating a lifestyle element to your brand is going to be key, because without that, you won’t be able to demonstrate how you align with the new consumer’s values and lifestyle beyond health, such as sustainability and social responsibility.

Second, these consumers are all about experiences. So, from a very tactical perspective, look at experiential to lead the way in telling a brand story. Create immersive experiences that give consumers a reason to recall you over every other brand trying to compete in the same space.

Thirdly, tell stories. Authentically. You’re going to need to connect with people’s emotions to inspire liquid on lips but, even more importantly, to get them coming back. The reality in the alcohol-free world is you’re not just competing against other non-alcoholic beers, wines and spirits. You’re competing against Coke. And Pepsi. And lemonade. And water. And… everything else. BRAND IS EVERYTHING.

Finally, innovate. We’ve not seen any alcohol-free brand give any real thought to how they can really create a unique taste, or switch up the packaging as an attention grab. We need more innovation in the marketplace from NPD to how things sit on the shelves.

The opportunities are incredible. Through innovation, creativity and working to build a lifestyle around a brand, the biggest booze brands can ride the non-alcoholic wave and cement themselves as leaders in the new era of beverage consumption. And if you’re a challenger brand in the alcohol-free space, there’s never been a better time to make your mark.