Nonalcoholic drink sales grow beyond just Dry January

An estimated 44% of Americans say they’re likely to participate in dry January this year, according to a recent survey by consumer research firm NielsenIQ. And those who stick with it have a whole lot of alcohol alternatives to choose from. They may not even taste the difference, as more sophisticated and varied products become part of the mix.

Physical and mental health are priorities for new generations of drinkers, so beverage companies are finding ways to tap into a growing “sober curious” movement, said analyst Kelsey Olsen with Mintel. 

“This is only expected to increase especially as younger consumers are kind of driving that conversation,” she said.

In the past five years, many alcohol dupes — especially beer — have almost the same flavor, she added. That may be one reason beer dominates this growing industry. 

Alcohol-free beer and other products are mostly bought by drinkers seeking moderation, according to NielsenIQ’s Kaleigh Theriault.

“Bar and restaurant owners can lean into still selling an alcohol product, but it’s responsible because there isn’t actually any alcohol in it.” 

But not all breweries will hop on board. “There’s a lot of technical challenges and costs associated with brewing non-alcoholic beer,” acknowledged Bart Watson with the Brewers Association. 

That’s why other drinks like hop water are also popping up a lot at craft breweries — they’re cheaper to produce than a full-on alcohol-free ale.