The alcohol-free category has made its way from niche alternative to mainstream superstar. The global market is estimated at around $1.32tn and it’s still growing: predicted to increase to around $2.68tn by 2034. That’s with an impressive CAGR of 7.34% from 2025 to 2034.
But, as with any emerging category, growth is not plain sailing. The industry has had to tackle key issues such as price and availability; as well as encouraging people to give the category a go.
Dry January is a fun challenge for consumers: but the month also offers a barometer on consumer trends. And as more and more quality products enter the market, brands need to think about how to stand out from the pack.
We take a look at how the industry is evolving: and what brands need to know about the road ahead.
1) The sober curious consumer is more complicated than you think
Consumers want to be healthier, so they’re cutting back on alcohol. But is it really that simple?
Yes, many consumers want to drink less for their health. And that’s not just about physical health but also mental health: and the benefits such as sleeping better or being able to embrace the following day.
But there are other factors at play. In the US, 31% of consumers say they’ve changed their alcohol purchasing behavior to manage spending. Nearly four in 10 UK consumers (39%) say they’re cutting back on alcohol intake because of finances: compared to 22% for health and fitness goals and 14% for a desire for mindfulness.
And it’s also about the way we socialize. The rise of gaming, streaming and scrolling means fewer people are going to bars and pubs and socializing in person: an event which once prompted alcohol consumption.
Alcohol-free brands need to understand these consumer trends. Removing alcohol isn’t a free pass: consumers don’t want drinks packed with other nasties either.
“A large part of our consumer base chooses not to drink for health related reasons,” confirms Hannah Delaney of US alcohol-free marketplace Boisson. “So if a non-alcoholic product is filled with sugar, it may not be the best fit for Boisson either.”
2) Zebra striping is redefining how people drink
One of the most widely talked about trends in 2026 is zebra striping: where consumers alternate between alcoholic and non-alcoholic drinks in the same occasion.
The practice has been emerging over the last few years: today it’s a key part of consumer habits.
Zebra striping helps illustrate what today’s moderation movement looks like. It’s far from game over for alcohol brands: consumers still want to drink a classic craft beer or premium cocktail.
But they don’t want to hammer back alcoholic drinks all evening: alcohol-free drinks, therefore, provide a way to stay in the moment and enjoy social occasions.
The good news: alcohol-free drinks are becoming part of drinkers’ standard repertoires. The bad news: alcohol-free drinks still have to challenge being positioned as the interlude between the ‘real thing’.
Alcohol-free attitudes have (finally) changed
You've heard it for years: alcohol-free is now trendy.
But in the real world, the shift hasn’t necessarily been as fast or pronounced as advocates would hope.
Alcohol-free cocktails might make a lot of noise in posh bars in New York or London; but availability of alcohol-free alternatives in an average bar outside the cities still leaves much to be desired.
And social attitudes haven’t shifted overnight. In January 2025, research from Heineken showed that many consumers still felt a social stigma to choosing alcohol-free options, with social pressure remaining a barrier to choice and consumption.
But the last year has finally seen a mass shift in attitudes. Today, 81% now say they believe it’s fine to decline alcohol without explanation , and 86% feel comfortable choosing low or no alcohol drinks at social gatherings, according to Heineken’s research across the US, US, Japan, Brazil and Spain.
3) Innovation is how the category will reach new audiences
The focus on the category to date has been on getting the liquid right, and rightly so.
And while the category has made leaps and bounds in getting it right, the job isn’t done. Brands tell us they’re constantly innovating: seeking to make their product the absolute best it can be with new techniques and ingredients.
But innovation goes beyond the liquid and to formats that can tempt in new consumers.
Non-alcoholic spirit brand Lyre’s, for example, has expanded into canned mocktails to help people explore the category.
“For trial, for people who are curious about entering the non-alcohol space, RTDs are a great entry point,” said David Gimpelson, CEO of Lyre’s.
Innovation can also take other formats, says Andrew Wardlaw, chief ideas officer at MMR Research.
“Brands have to think carefully about what their offer to a consumer is, and the rationale for buying,” he said: a logic that applies both to alcohol and alcohol-free products.
“That could be about finding ways to create different price entry points, for example by offering smaller sizes, which would then shift the value equation and make purchase more accessible and appealing.”
4) Functional drinks will carve out new categories
And one of those areas of innovation is functional drinks.
It’s easy to forget why consumers drink alcohol in the first place. They’re looking for alcohol’s ‘buzz’ to party or as a social lubricant at events; or to help them chill and relax after a long day.
Functional alcohol-free drinks step into this gap: bringing drinks for refreshment, socializing and more.
Nootropics, adaptogens and functional mushrooms are all ingredients at the innovator’s disposal. Brands are creating their own proprietary blends to stand out from the pack, such as Kin Euphorics, Three Spirit and De Soi, often keeping their formulations a closely guarded secret. Those who are willing to take on the complexity of regulations are exploring cannabis, THC and CBD for a high without the hangover.
Expect more innovation in this area: with functionality a key way to stand out from the crowd.
Innovation, however, is not just about packing in functional ingredients. Hiyo contains a proprietary blend of adaptogens, nootopics and botanicals: but that’s not the end of the story.
“We’re not trying to replicate alcohol: we’re trying to replicate why people drink alcohol," says George Youmans, co-founder and chief revenue officer at Hiyo.
“We think of Hiyo as a social tonic rather than a traditional functional beverage. The ingredients support the experience: but the real value is how people feel in the moment.”
The company has made social connection the center of its brand, which brings us onto...
5) The battle of the brands is on its way
Brand loyalty in the alcohol-free category remains low. Consumers are still discovering the category, exploring their options, and thinking about how alcohol-free drinks can fit into their weekly routines or celebratory occasions.
But the era of the brands is emerging. Big brands like Guinness 0.0 and Heineken 0.0 are natural heavyweights in the category: helping continue to establish its credibility.
But that doesn’t mean their dominance is assured. Athletic Brewing and Lucky Saint are emerging as independent leaders in the US and UK respectively. January search data shows brands such as Best Day Brewing, Giesen, Seedlip and Lyre’s also being actively sought out by consumers.
Having a good product will remain essential: but as the category moves forward, it’ll be increasingly necessary to have a strong brand identity and narrative to stand out from the pack and gain the loyal consumers needed for long term success.
“In many cases, the consumer is still looking for the brand for them,” says Damian McKinney, CEO of alcohol-free company DioniLife, adding that brands that lean into fun, positive branding are the ones that will stand out.
It’s still early days: and it’s all to play for...
