.svg)
.png)
After years of innovation and investment, the low- and no-alcohol (“low/no”) category has evolved from a niche into a dynamic mainstream segment of the drinks industry. Once sidelined as a curiosity, alcohol-free spirits and their low-ABV counterparts are now featured on dedicated bar menus and retail shelves worldwide. The global no/low-alcohol market is expected to grow at a +4% volume CAGR through 2028, notably outpacing the traditional alcohol sector’s modest ~1% growth. In value terms, the non-alcoholic drinks market has swelled to about $13 billion globally, and is on track to comprise nearly 4% of total alcohol volume worldwide by 2027. This rapid rise signals that low/no offerings are no longer a side-line trend – they’ve become an integral part of the beverage landscape, commanding attention from industry leaders and consumers alike.
The low/no segment’s expansion has been remarkable, even amid economic headwinds. In the past year alone, the no-alcohol “spirits” subcategory (alcohol-free products positioned as spirit alternatives) climbed by double digits in volume globally. For the next few years, no-alcohol options are forecast to drive the vast majority of category growth, with IWSR projecting +7% CAGR in volume from 2024–2028. By contrast, low-alcohol products (those containing a small amount of alcohol) are seeing relatively flat growth. The no-alcohol segment’s momentum is expected to continue at about +9–10% annually through the mid-2020s, meaning it will handily outperform the broader alcohol industry’s growth rate in the foreseeable future. In key markets like the United States, the trend is even more pronounced: no-alcohol beverage volume in the US is predicted to soar by +18% CAGR from 2024–2028. This will effectively double no/low’s share of the US total beverage alcohol market within that time. Such figures underscore an important point for brand owners – while the overall alcohol sector may be maturing, the low/no category is injecting much-needed growth and dynamism.
Notably, consumer dollars are following the volume trend. In the US, the retail sales value of the non-alcoholic category has grown at an astounding +31% CAGR over the past five years, making non-alcoholic spirits the fastest-growing segment in the entire adult beverage market during that period. And these products are not just attracting teetotalers – 94% of non-alcoholic beverage buyers also purchase traditional beer, wine or spirits, with households that buy non-alc drinks actually spending more in total than those who only buy alcoholic ones. This indicates that low/no options are largely incremental business for brands, rather than cannibalizing core alcohol sales. In other words, offering a quality alcohol-free alternative can help capture health-conscious or “sober-curious” consumers without losing them from the category altogether.
Shifting consumer attitudes toward health and mindful drinking are a major force propelling the low/no movement. Younger generations – particularly Gen Z and younger Millennials – are leading this change, with a significant portion choosing to drink less or not at all. Roughly 40% of Gen Z adults have never even tried alcohol, illustrating a generational cultural shift. For those who do imbibe, moderation is increasingly the norm. Many consumers are adopting “occasion-based” sobriety challenges like Dry January or Sober October, or simply setting personal limits on when and how much to drink. This is not a temporary fad but a lasting cultural phenomenon: by 2025, moderation has “moved beyond a trend and is now a permanent part of modern drinking culture,” notes Claire Warner, a veteran advocate in the low-ABV space.
One particularly popular moderation tactic – and a buzzword in industry discussions – is “zebra striping.” This term, coined in a 2024 KAM research study, refers to alternating alcoholic and non-alcoholic drinks within the same occasion. Instead of drinking alcohol exclusively on a night out, a consumer might have a beer or cocktail, then switch to a zero-proof alternative for the next round, and continue this one-to-one rotation. The effect is a dramatic reduction in total alcohol intake without sacrificing the social experience of enjoying drinks. Research in the UK found that about 28% of bar-going adults already practice zebra striping when they visit pubs and bars. When including those who alternate with water or soft drinks, that figure jumps to roughly two-thirds of adults (and an impressive 78% of 18–24 year-olds) moderating their intake in one way or another.
From a brand’s perspective, the zebra striping trend is encouraging news: it doesn’t mean people are skipping the pub or not drinking anything – it means they’re actively seeking out high-quality alcohol-free options to integrate into their night. As KAM’s Katie Jenkins explained, consumers want to “enjoy a quality drink which tastes and looks great, whether it’s alcoholic or not”. They don’t want to start with a favorite craft beer or premium G&T and then be forced to switch to a boring soda or inferior alternative. The onus is on producers and venues to ensure the alcohol-free choices are just as crafted and appealing as their boozy counterparts. Brands that can deliver a satisfying experience in a low/no product – in terms of flavor, complexity, and presentation – stand to gain favor with these moderation-minded consumers. In essence, moderating on alcohol should not mean moderating on fun or flavor, and the industry is quickly waking up to this expectation.
Five years ago, an alcohol-free “spirit” or cocktail on a menu might have raised eyebrows. In 2025, it’s increasingly standard to see dedicated sections for low and no-alcohol drinks on cocktail menus and retail displays, reflecting a newfound legitimacy in the on-trade (hospitality) channel. Top bartenders are treating zero-proof cocktails with the same craft and creativity as traditional ones, using premium alcohol-free spirits, botanicals, and advanced mixology techniques to elevate their flavor. This means a guest cutting back on alcohol can still enjoy a thoughtfully-made mojito or negroni alternative, rather than feeling like a second-class citizen of the bar. In fact, leading bars from London to New York now feature signature non-alcoholic cocktails alongside their usual offerings, and some venues (like the acclaimed Ocean Beach Café in San Francisco) are entirely alcohol-free, proving the viability of a sophisticated zero-proof nightlife experience.
On the retail side, supermarkets and bottle shops are carving out more shelf space for the burgeoning variety of low/no products. Established liquor brands have introduced alcohol-free versions of their classics – for example, Diageo’s Gordon’s 0.0 and Tanqueray 0.0 gins – lending familiar names to the category and attracting curious consumers. At the same time, independent alcohol-free spirit brands (Seedlip, Lyre’s, Ritual, etc.) have proliferated, offering everything from gin and whiskey analogues to innovative botanical elixirs that create entirely new flavor profiles beyond the traditional spirit categories. The range of options has dramatically improved in taste and quality in recent years. Early non-alcoholic spirits sometimes left drinkers underwhelmed, but today’s offerings benefit from better R&D, ingredients, and distillation techniques that deliver a more authentic bite and complexity. As a result, consumers have come to expect alcohol-free drinks that “deliver on taste, complexity, and overall drinking experience,” not just a lack of alcohol. This maturation of product quality further cements low/no as a credible alternative rather than a compromise.
Tanqueray 0.0, an alcohol-free gin alternative, exemplifies how major spirits brands are entering the zero-proof space. Global players are launching or acquiring non-alcoholic versions of popular spirits to serve the moderation trend. These products aim to replicate the flavor experience of classics like gin, whiskey, or rum – but with 0% ABV – allowing consumers to enjoy their favorite cocktails in a lighter way. The presence of recognizable brands and improved liquid quality has helped legitimize the category in the eyes of both retailers and patrons. It’s now common for a bar’s mocktail to feature a branded alcohol-free spirit as a base, or for a store to stock zero-ABV gin alongside the real thing. This “integration” of low/no into the traditional alcohol retail and service environment marks a pivotal shift: the category is no longer an afterthought, but rather an expected offering in a modern beverage program.
If anyone still doubts the longevity of the low/no movement, one look at recent investment activity should put those doubts to rest. Major beverage companies and savvy investors have been pouring into the space, validating its growth potential. In 2024 alone, several headline-grabbing deals underscored the category’s momentum:
These investments are about more than just acquiring products – they often come with the backing of larger companies’ marketing muscle and distribution networks, which can rapidly accelerate the growth of low/no brands. The flurry of M&A and partnerships sends a clear message: leading industry players are betting that alcohol-free and low-ABV beverages will command a significant share of the future market, and they don’t want to be left on the sidelines. For smaller independent brands in the space, this influx of capital is generally positive, validating their ideas and opening opportunities for collaboration (though it also means stiffer competition, as big names leverage their resources).
Despite the upbeat trajectory, the low/no sector faces unique challenges – particularly when it comes to regulations and naming conventions. One issue is how these products are classified and labeled in different markets. Many countries regulate alcoholic beverages strictly but treat alcohol-free drinks as general food or drink products, which means there’s no unified global standard. As Crossip Drinks co-founder Tim Blake has pointed out, each country may have different rules on ingredients, processes (like whether a product must be pasteurized), shelf stability requirements, and labeling for non-alcoholic “spirits.” This patchwork of regulations can complicate expansion: a formula or label that is legal in one country might need reformulation or relabeling in another. For example, a botanical spirit alternative produced in the UK might run into unexpected rules when entering the US or an Asian market, necessitating tweaks to comply with local food safety or labeling laws. Small producers in particular find this burdensome, as navigating multiple regulatory regimes requires expertise and investment that can slow down their international growth.
Perhaps the most high-profile regulatory hurdle came in late 2025 in the European Union. In November, the European Court of Justice ruled that alcohol-free beverages cannot use traditional spirit category names like “gin,” even with a qualifier such as “non-alcoholic” on the label. The case in question involved a German company marketing a product as “Virgin Gin” (clearly indicating it was gin-like but 0% ABV). The EU court, however, decided that under existing spirits regulations, “gin” is a legally protected term reserved for juniper-flavored spirits with at least 37.5% alcohol – therefore a product with 0% alcohol cannot be called gin at all. The addition of descriptors like “non-alcoholic” or “virgin” did not matter; using the word “gin” itself was deemed misleading or unlawful in the EU. This landmark ruling means that alcohol-free spirit brands in Europe must be very careful in how they position and name their products. Many have already begun adopting creative nomenclature – referring to their gins as “botanical spirit,” their whiskies as “oak-aged spice drink,” and so on – to hint at the flavor profile without infringing on protected category names. While such regulatory protections aim to prevent consumer confusion and protect the integrity of traditional spirit definitions, they do pose a marketing challenge. Brands must strike a balance between communicating what their product emulates (gin, bourbon, etc.) and staying on the right side of the law. In the EU especially, we may see some rebranding or repositioning of alcohol-free spirits in 2026 and beyond to ensure compliance with this decision.
Another challenge is the retail placement and competition with established brands. In large retail chains, shelf space for low/no drinks can be dominated by the non-alcoholic offshoots of big-name alcohol brands. A consumer walking down a grocery aisle might easily find Heineken 0.0 near the beer, or Guinness 0.0 stout, or a prominent “mocktail” mixer by a familiar liquor brand, simply because those companies have the clout to secure prime positioning. Smaller independent zero-proof brands have to fight for visibility and educate retailers on why their product deserves placement in either the alcohol aisle or the soft drink section – a decision that isn’t always straightforward. Should a non-alcoholic spirit sit next to gin (inviting direct comparison) or in a special “alcohol-free” section? Retailers are still figuring out the best merchandising approach. For brand owners, navigating these dynamics requires strong branding and clear communication of the product’s purpose so it doesn’t get lost on the shelf.
For brand owners and C-suite executives in the alcohol industry, the rise of low and no-alcohol drinks is a call to action rather than a cause for alarm. The data shows that low/no is largely additive: it brings new consumers into the fold and adds new occasions, instead of simply cannibalizing existing alcohol sales. Embracing this trend can future-proof brands and open up avenues for growth. Here are key strategies and considerations for leveraging the low/no wave:
All signs indicate that low and no-alcohol drinks are here to stay and set to claim a lasting share of the market. IWSR analysts describe the current environment as a “transformative period of growth” for no/low products, and importantly, one that is bringing in new drinkers. In 2024 alone, the no-alcohol segment attracted an estimated 61 million new consumers globally (compared to 2022) – far more than the 38 million recruited by low-alcohol options. Those newcomers aren’t just abstainers, but often regular consumers experimenting with moderation. This means the pool of potential customers for low/no brands is widening rapidly.
Crucially, the trend is global. While markets like the UK, US, and Australia were early adopters of the sober-curious movement, regions across Europe, Latin America, and Asia are now showing strong interest in premium alcohol alternatives. The United States and Brazil are projected as especially high-growth markets in the next few years, but even traditionally alcohol-centric cultures are seeing shifts. Younger urban populations in places like India and South Africa are embracing occasional abstinence or lighter drinking as part of a balanced lifestyle. It’s telling that moderation is now “a mainstream cultural phenomenon” across virtually all demographics – this broad acceptance lays a foundation for sustained expansion of low/no offerings globally.
For brand owners and executives, the low/no revolution offers an opportunity-rich landscape, albeit one that requires nuance and commitment to quality. The healthiest way to view this development is not as an “us vs. them” battle between alcoholic and alcohol-free products, but as an expansion of the overall drinks market to be more inclusive of different preferences and occasions. A rising tide can lift all boats: companies that integrate low/no options into their brand strategy may find not only new revenue streams but also enhanced brand equity, by positioning themselves as forward-thinking, wellness-aware, and responsive to consumer needs.
In summary, the world of spirits in 2025 is being invigorated by the low and no-alcohol category. The sector has grown up – it’s more sophisticated, more accepted, and backed by serious market players. Challenges around regulation and competition remain, but they are surmountable hurdles in a sector that shows so much promise. For those at the helm of alcohol brands, now is the time to pay attention and possibly raise a glass (be it a classic cocktail or a zero-proof elixir) to a new era of mindful drinking. The companies that can expertly straddle both worlds – catering to drinkers and non-drinkers alike – will likely be the toast of the industry in the years ahead.
.svg)
Industry intel in your inbox — from major headlines to expert insights, stay ahead in the business of alcohol.
.png)
.png)
.png)
%20(1).png)
%20(1).png)