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As non-alcoholic beverages come to the forefront, ZeeZest speaks to industry leaders who weigh in on the trend and why it is here to stay.
Rise and rise
The ‘Non-alcoholic Beverages Market in India 2023 – 2028’ report by ResearchAndMarkets.com pegs the non-alcoholic beverages market in India at INR 1376.70 billion in FY 2023. This is expected to reach a whopping INR 1986.31 billion by FY 2028, growing at a CAGR of 7.29 per cent during the FY 2024 - FY 2028 forecast period. While these numbers are mind boggling, the reality is that the past decade has seen a visible increase in the consumption of healthier alcohol alternatives, especially in larger metros. Increasingly, people have been looking after their health and well-being and opting for relatively refreshing beverages that do not leave you feeling heavier in the morning. That coupled with the pandemic mentality, where many people ran out of stock in their home bars and realised that not only was the absence of drinking not the end of the world, but also left them feeling better each day has a major role to play in this behavioural shift. This trend saw a rise in 2023 and is slated to spill over into 2024.
Alternatives calling
Today, people are spoiled for choice with ready to drink coffees, bubble teas, cold pressed juices, fermented drinks, and drinks backed by famous stars being seen everywhere. With the increase in coffee roasteries, kombucha brands and non-alcoholic distilled beverage brands, the NOLO (no and low alcohol) trend is here to stay. Not only are these products available in most big retail stores in almost every metro in the country, but they’re now being also offered in several menus along with tea and coffees. Some bars have gone ahead and put together their own cocktail and mocktail concoctions using these NOLO beverages. “Additionally, there has been a massive surge in the coffee space, with awareness and availability taking credit for this bump. More and more specialty coffee shops are opening every week, with global brands taking a back seat and making way for homegrown coffee brands. Where cafes used to be a place for people to simply meet and catch up with little importance given to the offering itself, the last decade has seen coffee brands shift their focus on the product, both in the offline café and online e-commerce space,” says Apoorv Agarwal, founder, The Simple Brew.
Sober notes
Social media has been another major driving force behind making people 'sober curious'. Consumers have been wanting to choose a healthier, cleaner, and more sustainable lifestyle for some time now. The pandemic saw social media not only be a trendsetter in the beverage space, but it also helps users understand and learn how there is an entirely unexplored side of the non-alcoholic beverage space. Some people were intrigued with this newfound knowledge and wanted to try their hand at it, some wanted to jump on the social media hype bandwagon, and some just had some space ingredients lying around and wanted to see what they could whip up. These social media trends coupled with access to more and more alcohol alternatives fuelled their appeal.
Health call
Each person has a different reason as to why they are opting for a non-alcoholic alternative – whether it is taste and flavour, health benefits, or for the hype. The main attraction of non-alcoholic beverages today lies in their ability to provide a sophisticated and enjoyable drinking experience without the effects of alcohol. With fewer calories and no hangover effect, which is appealing to health-conscious individuals. Siddharth Saraf, co-founder, Vaum Tonics opines, “the resurgence of non-alcoholic beverages in 2024 can be attributed to a growing global health-conscious movement. Consumers, especially millennials and Gen Z, are increasingly prioritising wellness and mindful drinking. The shift towards non-alcoholic beverages isn't just a fad but part of a larger, more holistic approach to health and wellness. As beverage companies globally and in India continue to innovate and cater to this growing market, the variety and quality of non-alcoholic options will keep consumers engaged and interested.”
Getting crafty
The non-alcoholic beverage market is also seeing a rise in artisanal and craft options. New age mixer brands such as Svami have introduced their range of Rum Cola, Pink Gin & Tonic that are non-alcoholic, Sepoy & Co has their range of bottled lemonades and Vaum Tonics has their botanical waters with exotic flavours such as MangoFig, Elderflower Rosemary or Cucumber Mint, emphasising quality ingredients and unique flavour profiles. The surge in Kombucha brands in India has also increased manifold while Amul is also making its foray into dairy-based non-alcoholic seltzers. Brands such as Heineken & Budweiser have now introduced the 0 per cent beer, which is no difference in taste than the actual beer, but significantly fewer calories. Coolberg has done the same here in India. Indian brands such as Sober Gin are pushing the envelope and introducing India’s first distilled non-alcoholic spirit. Multiple Indian mixer brands have introduced newer options and flavour profiles and are also putting in serious money behind educating consumers through activations on ground. What this means is that teetotallers can also enjoy the social experience of drinking, without health or impairment concerns. And that is a win-win situation that is auguring well for non-alcoholic beverages. Time to raise a toast.
Photo: Unsplash; featured brands