low-alcohol and non-alcoholic Retail Opportunity

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