On the Rise in ’25: Alternative Beverages

In Celebration of dry (or damp) January let’s take a look at the continued growth of alcohol-alternative beverages.

We all tend to form habits with our monthly spending.  But these days, consumers are re-evaluating their food and beverage budgets.

Alcoholic beverages are a luxury item, and now that the major North American holidays are behind us, and some New Year’s resolutions demanding accommodation, the population assesses their beverage choices.  Which factors weigh in on those choices? Let’s consider the following points.

Cost and Inflation

Groceries and alcohol prices continue to climb.  

For starters, there is a noticeable difference in terms of how many groceries we find in our reusable bags when we pay the same total we did a year ago.

Then there are the federal alcohol taxes in Canada that will be increasing by 2% as of April 1st this year.

Health

Another influential factor is what may impact our health.

Besides Canada’s new guidance on alcohol and health released at the beginning of 2023, that warned of disease linked with alcohol consumption, the US surgeon general is now urging for warnings to be labelled on alcoholic drinks in the USA.  Consumers are taking note.

Trends

One more factor that should be mentioned are the swinging shifts of popularity.

For as long as there has been social pressure on popular choices, there have been trends. We’re seeing many celebrities and social media influencers, for instance, singing the praises of alcohol-free alternative beverages for reasons of health, weight management, and fashionable choices.

Answering the Call

From emerging seltzer businesses to giant beer corporations, the industry is responding to the demand to quench low-alcoholic thirsts. Consumers are seeking alternatives to alcohol that still give them the vibe of drinking, but without the suggested health risks or impact to their wallets. While the demand steadily rises, the variety and level of sophistication in offerings also expands.

Impact

The change is so great, in fact, that “…the volume of alcohol consumption has been declining consistently while non-alcoholic drinks are seeing an "exact inverse" with double-digit growth in consumption of mocktails and non-alcoholic beverages,” according to Robert Carter, food retail strategist and consumer behaviour industry expert.

The projected trend for 2025 is seeing consumers swapping out their alcohol for low or no-alc beverages, but interestingly, many will also be incorporating alternative beverages into their usual beer, wine and liquor consumption.  It is expected that we will be seeing a continued uptick in both “dry” and “damp” target markets.

Innovations Need Promoting

By no means are beer and wine being snubbed.  What it does mean is that these new alternative categories of beverage create further competition and new innovations in the market.  And every innovation needs promotion.

Co-packers are being called on to implement these promotions via variety pack assembly and multi-packs.  It makes no difference the contents of the can or bottle, the process is the same for secondary co-packing production.

Bonus!

So what kinds of no and low alcoholic options live in the liquor space? 

Just for fun, we did some research on beverage descriptors on the market today that have little to zero alcohol (whether the alcohol content has been removed or whether it never existed at all).  Have we missed any? We’re sure there are more so let us know at sales@bullseyepackaging.ca.

• Alternative dairy

• Alc-free RTDs (Ready To Drink)

• Bottled still water

• Canned and bottled tea

• CSD (carbonated soft drinks)

• Functional beverages

• Iced coffee

• Infused water

• Kombucha

• Mocktails

• Near beer

• NoLo beer

• Nonnies

• Neutraceuticals

• Protein supplements

• Sparkling water

• Spirit-free

• Sport drinks

• Temperance drinks

• Virgin

• Zero proof

Whether you are an emerging brand or newly launching your established brand in Canada, Bullseye Packaging Services will implement your promotion by assembling your variety packs.  
Bullseye is fully licensed for secondary co-packing alcoholic or non-alcoholic beverages.  If it’s shelf-stable, we can pack anything on the list shown above.