What's driving the non-alcoholic beverage boom?
Low- and non-alcoholic (NA) beverages—often grouped together in a single category—are claiming more shelf space as consumers seek sophisticated alternatives that replicate social drinking rituals. Growth in the category has been fuelled by innovation and a wider range of options across beer, wine and ready-to-drink (RTD) formats.
Between June 2023 and June 2024, the non-alcoholic beverage market gained significant momentum. “Low-alcohol beverages are one of the fastest-growing categories in Canada, with dollar sales up 12% year-over-year, outperforming total FMCG [fast moving consumer goods] at 3% and total beverages at 7%,” says Carman Allison, vice-president of business development for Canada at NielsenIQ (NIQ).
Bob Hufsmith, grocery manager at Stong’s Market in North Vancouver, has watched the low- and non-alcoholic category evolve. “In 2023, we had 16 beer brands, two wine brands and four mocktail brands,” Hufsmith says. “As of January 2026, we have 29 beer brands with 69 SKUs, eight wine brands with 22 SKUs and 14 mocktails/cider with 48 SKUs.”
The shopper profile spans generations. Households with two members and affluent consumers ages 55 to 74 are the biggest spenders, Allison notes. Cori Norman, vice-president merchandising grocery, Lawtons and local development at Sobeys, adds that generation X leads beer purchases, while younger generations over-index in overall consumption.
Beer dominates, but RTDs surge
Non-alcoholic beer dominates the category. “Beer consistently accounts for 75% to 80% of planogram sales,” says Norman.
But, RTD is the fastest-growing segment. “RTDs have seen the strongest growth rates in the non-alcoholic space, supported by rapid assortment expansion,” Norman notes. “Innovation is highest in RTD mocktails and non-alcoholic spirits.”
Emerging segments such as flavoured aperitifs and mixers are up 38%, while cider has seen 13% volume growth, according to NIQ’s Allison. “Retailers should expand assortments in these fast-growing segments to capture incremental sales and capitalize on evolving trends beyond traditional malt beverages,” he says.
Moving beyond the basics
Younger consumers are driving demand for variety. “They tend to be especially curious, and despite rapid growth and a significant expansion in assortment [in the category], they continue to push for greater brand choice and more flavour variety,” Norman says.
Within the beer category, consumer tastes are evolving. “Customers are moving beyond basic lagers,” explains Hufsmith of Stong’s. “Guinness NA is one of our top three brands, and most multi-SKU brands that carry an IPA are seeing strong sales with that style.”
Varietal-specific wines are also gaining traction. “In the wine category, Loxton Sauvignon Blanc is our top-selling wine, so our specialty wines are outselling basic red or white,” notes Hufsmith.
Consumers are also seeking products that deliver health benefits beyond just removing alcohol. “My customers have both goals: to reduce or eliminate alcohol and to reduce calories or sugar,” says Bob Huitema, president of DistillX Beverages, maker of zero-sugar, zero-calorie Sobrii spirits and RTDs.
The demand for variety also extends to NA spirits, according to Huitema. “More and more, customers are looking for different verticals,” he says, noting that Sobrii launched a zero-proof rum in September 2025 and will introduce a whisky this spring.
Retail strategies for growth
Norman says strategic placement drives basket building. “Non-alcoholic beverages are typically placed adjacent to soft drinks, water and energy drinks, often within dedicated sections,” she says. “In stores where alcohol sales are permitted, we’re seeing high interaction between non-alcoholic and alcoholic beverage spaces, creating opportunities to build larger baskets, with 70% to 80% of consumers purchasing both.”
Sampling remains crucial to help consumers discover what they enjoy. “Tastings or sampling is the key to getting trial,” says Hufsmith. Stong’s also offers single cans where possible as a low-commitment option for shoppers curious about new products.
Norman expects the category’s momentum to continue across all channels. “While grocery [sales] growth for non-alcoholic beverages is in the low double digits, liquor and on-premises dining [bars, restaurants, clubs] are seeing growth of 30% to 40%,” she says. The disparity suggests significant untapped potential remains in traditional grocery. Retailers who allocate space and invest in customer education stand to capture incremental sales.
This article was first published in Canadian Grocer's February 2026 issue.
