A look at who is gravitating to ‘sober’ beverages, and where grocers fit in
There’s no disputing that more and more consumers are cutting down on alcohol and seeking out alcohol-free alternatives. According to a 2024 Nielsen Consumer report, Non Alcohol: An Anytime Alternative, non-alcohol products have been experiencing double-digit growth over the last two years in Canada, with a 24% increase in sales from 2023.
The good news for grocers is that shoppers are making more trips into grocery banners for non-alcoholic beverages and spending more per occasion online, states the report. Non-alcoholic beer and cider accounts for 76% of total sales in this category but ready-to-drink mocktails in larger case sizes are also experiencing notable growth.
The fact that 84% of Canadians have a positive view of non-alcoholic beverage producers, according to the Canadian Beverage Association’s latest poll conducted by Ipsos, is further proof that consumers are open to more sober experimenting. Sam Agarwal, vice-president, market strategy and understanding at Ipsos, says she and her team have started tracking non-alcoholic beverages as part of the firm’s Alcohol Consumption Tracker (ACT) this year due to the onslaught of new products and increasing interest in this category from clients. (ACT tracks consumption across all categories, brands and types of occasions.)
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So far, the research shows that most growth in this category is coming from gen Zs, followed by gen X and millennials. “Nearly 12% [of gen Zs] said they don’t drink at all and a large majority (71%) are drinking more mindfully, taking breaks or alternating between alcohol and non-alcohol,” she says, noting that they are reading labels and looking for lighter and healthier alternatives. “They want to be in control of their health…non-alcoholic drinks fill that gap, giving them enjoyment around drinking without the harmful effects.”
New immigrants generally more conscious about alcohol consumption are another population sector gravitating towards this category, says Agarwal. “Drinking non-alcoholic beverages also allows people time to drink earlier in the day for brunch or early afternoon—and this category performs well in outdoor occasions too.”
Big brands are certainly taking note with sober versions of well-known favorites like Guinness and Tanquery Gin launching in Canada over the last few years. Local craft breweries are also getting in on the trend with non-alcoholic beer varieties now available on grocery shelves.
Others like Henderson Brewing Company based in Toronto, are even branching out to launch craft sodas. Brewed in-house, Solly’s Craft Soda from Henderson’s, comes in four flavours made with all-natural ingredients, low sugar and prebiotics.
Adin Wener, managing partner and co-founder of Henderson, says the product is aimed at the 25- to 35-year old, mostly female demographic who want “an approachable, fun and low-sugar” alternative. The company is already partnering with individual retailers to provide flavours exclusive to them. “We have that ability to work with retailers to do some unique things,” he says.
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In his company’s experience with customers, he says non-alcoholic beverages aren’t necessarily replacing alcoholic products, but being integrated into a more balanced lifestyle. “I’ve seen an interesting trend where people will buy an eight-pack of beer and include two that are non-alcoholic,” he says. “I see this with males over 30 particularly who don’t want to drink too much.”
When it comes to craft sodas and non-alcoholic beers, Wener says grocers need to get “liquid on lips” so people can try before they buy and discover just how good these products can be. “There are absolutely people who don’t drink alcohol but still want beer,” he says. The nice thing about non-alcoholic beer compared to wines and other spirits is that it is accessible too. “You don’t need to spend a lot for great taste,” he says.
