How important is it today to be able to build a non-alcoholic offering within your cocktail bar? And what kind of demand supports this type of offer?

According to the latest data from research by the IWSR (International Wine & Spirits Research), between 2022 and 2024, the no-alcohol segment has gained 61 million new consumers, surpassing the 38 million in the low-alcohol category. “The data reveals that the new users, who are younger than the average demographic, show a higher frequency and intensity of consumption. This trend reflects a general decline in alcohol consumption, with per-capita volumes in the analyzed markets falling by 80% compared to 2000 levels.” So apparently, people are drinking more but differently, specifically, consuming less alcohol.

It is generally expected that the non-alcoholic sector alone will see a growth of over four billion dollars in turnover by 2028. Members of Generation Z and Millennials are seemingly the most interested in trying new non-alcoholic alternatives. Concurrently, companies are increasing their offerings, with the number of new no-low alcohol products introduced to the market nearly tripling from 2019 to 2023.

Martina Bonci, bar manager at Gucci Giardino 25 in Florence, told us that in her case – whether due to the type of venue, its central location, or its strong appeal to tourists – the focus on alcohol-free options has always been there. “We have been working on this category of drinks since the opening, as demand has always been high, and today it has definitely increased. Alcohol-free drinks are cocktails in their own right – we need to move past the idea that they are somehow an inferior way of drinking. The techniques we use are the same, with the necessary adjustments.” Think, for example, of the absence of a spirit which, when working with product assemblies prepared in advance – the so-called batches – helps preserve the mixture. In the case of an alcohol-free recipe, this element is missing, and the product’s shelf life changes as a result.

“We have noticed that an increasing number of people, looking forward to long social gatherings, celebrations, or events, are approaching drinking in a systematic but mindful way. How so? They ask us to alternate between an alcoholic cocktail and a no/low alcohol one, in order to avoid excessive alcohol intake. From this perspective, the market has been a great help as the variety of new low-alcohol products has grown exponentially,” Martina continues. There is no doubt that currently, the portfolio of non-alcoholic spirits is very wide, diverse, and rich in increasingly interesting products. Examples include alcohol-free bitters or non-alcoholic amaros that exhibit a high-level structure and aromatic profile, despite the absence of an alcoholic kick.

Susie Goldspink, Head of No/Low Alcohol Insights at the IWSR, stated:
“As the no- and low-alcohol category matures, consumers are looking for more than just the absence of alcohol. They want products that deliver flavour, complexity, and a complete drinking experience. This evolution is pushing the category into new territory, encouraging brands to innovate and raise the bar on quality and variety.” The parameters worth investing in remain the same as those in the world of spirits.

In addition to moderation, aspects such as taste, availability, and brand awareness are becoming crucial, especially in emerging subcategories like ready-to-drink, which show a compound annual growth rate of +10% until 2028. Bonci concludes:

“The appearance, the colour, the glassware, the use of ice — the care we put into creating and building an alcohol-free cocktail is exactly the same as for an alcoholic recipe. Considering that most of the drinks on our menu are designed to be easy to drink, fresh, and light in strength, my approach to the two categories is the same. In fact, alcohol-free cocktails, to be honest, always present a few extra challenges precisely because the structure of the drink is less stable, the textures are more difficult to work with, and you have to pay attention to the sweetness of many new products and to the use of elegant, crystal-clear ice.”

As is easy to deduce, the price factor is progressively aligning with that of a regular cocktail. New productions often come with significant costs, and the processing time and preparation of a no/low alcohol recipe are by no means inferior to a traditional cocktail. Whether you like the idea or not, it is time to explore this category more deeply, from both the professional and consumer perspectives.

Look on the bright side, less headache in the morning, extended nights out, and new taste frontiers.