Non-alcoholic beverages have bubbled their way into the spotlight, proving you don’t need booze to bring the buzz. Once confined to sad sodas and water with a lime wedge, the non-alcoholic drinks category has burst into a vibrant, innovative space that’s giving traditional bev-alc a run for its money.
Millennials and Gen Z are leading the charge. Events like “Dry January” and “Sober October” are not just health kicks but cultural moments. Studies show non-alcoholic spirits in the U.S. surged 29% in volume from January to July 2024. That’s faster than the rise of avocado toast in 2016!
The Industry Shakes (But Not Stirs) Things Up
Brands like Crafted ERP customers Athletic Brewing Co. and Go Brewing aren’t just making beer without the alcohol — they’re creating craft experiences that rival their alcoholic counterparts. Want proof? Athletic Brewing is now a $90 million sensation and expanded its operations to a second location in southern California.
And it’s not just beer. The spirits space is thriving with brands like Ritual Zero Proof, recently scooped up by Diageo (yes, the same folks behind Guinness and Johnnie Walker). Why? Because they know a good thing when they see it.
From non-alc wines to hop waters, the choices are endless. And let’s not forget the alcohol-adjacent categories like low-ABV drinks and THC-infused spritzers.
Low, No or Zero: What’s the Difference?
Let’s back things up for a minute. We’ve heard about low alcohol, no alcohol, and zero proof, but what distinguishes one from the other?
Here’s a breakdown of what classifies different types of low- and no-ABV beverages:
- Non-alcoholic beverages: This category can contain up to 0.5% ABV, a tiny amount often left over from the fermentation or dealcoholization process. You’ll see this in beverages like kombucha or jun.
- Zero-proof: These drinks are 100% alcohol-free — perfect for anyone steering completely clear of booze.
- Low-alcohol options: These are the compromise between “Let’s party” and “I have things to do in the morning.” With just a hint of alcohol, these drinks typically include 0.5% up to 3.5% ABV, depending on the category.
- THC-infused drinks: Cannabis-infused beverages are creating a buzz — literally. They’re ideal for consumers who want to relax or socialize without touching a drop of alcohol. As cannabis legalization spreads, microdosing beverages are all over social feeds, becoming the go-to sip as people tap into mindful indulgence.
Why does this matter? Because consumers want transparency. Whether it’s for health, personal or religious reasons, knowing the exact alcohol content builds trust — and keeps them coming back for more.
What’s Next for the Non-Alcoholic Industry?
The non-alcoholic beverage industry isn’t just riding a wave; it’s building a tidal force of innovation, sustainability and consumer-first experiences. Here’s a closer look at where this exciting sector is headed.
Beyond Flavors: Functional & Experiential Beverages
Consumers aren’t just looking for great tasting drinks; they want beverages that do something. Enter the rise of functional drinks — beverages infused with vitamins, adaptogens or even mood-boosting botanicals.
- Adaptogenic mocktails: Ingredients like ashwagandha, ginseng and reishi mushrooms are becoming staples in non-alcoholic and zero-proof cocktails. These drinks promise stress relief and mental clarity, offering a health-conscious alternative to a glass of wine after a long day.
- Caffeine and electrolytes: Morning drinks aren’t just coffee anymore. Functional zero-proof beverages are stepping in with caffeine for energy and electrolytes for hydration, perfect for post-workout or mid-day pick-me-ups.
- Probiotics in your glass: Kombucha paved the way, but now probiotic sodas and sparkling waters give gut health a tasty twist. Brands focus on drinks that promote wellness without the sugary baggage of sodas.
Alcohol-Free Events: Changing the Social Scene
Non-alcoholic beverages are transforming social norms around drinking. The rise of sober-curious bars and alcohol-free events creates new industry opportunities.
- Dedicated non-alc bars: Establishments like Sans Bar in Austin, Texas, and Listen Bar in New York City, prove you don’t need booze to have a great night out. Where it might have meant settling for water or a soda in the past, these venues are designed to make the sober lifestyle acceptable and aspirational. People still love a bar’s ambiance, energy, and social fabric; now, they have more choices.
- Corporate events and weddings: As demand grows, caterers and event planners expand their alcohol-free offerings. Specialty non-alcoholic cocktails or mocktails at weddings and work parties could become the norm, not the exception.
Global Expansion: Non-Alc Goes Worldwide
While the U.S. and Europe have spearheaded the non-alcoholic trend, global markets represent a vast untapped opportunity.
- Asia-Pacific boom: With a strong tea culture and growing interest in health-conscious living, the Asia-Pacific market is ripe for non-alc innovation. Expect traditional flavors like matcha and yuzu to feature prominently in non-alcoholic beverages.
- Middle East potential:In regions where alcohol is restricted or culturally less accepted, non-alcoholic beverages are a natural fit. The Middle East could become a significant growth hub, focusing on zero-proof drinks that align with religious and cultural practices.
- Localized flavors: As non-alc brands expand, they’ll tailor products to local palates. Think tamarind-inspired drinks for Latin America or lychee-infused options for Southeast Asia.
Education & Transparency: Building Trust
In the age of the informed consumer, brands will need to double down on transparency and education.
- Ingredient clarity: Consumers want to know exactly what’s in their drinks and how it benefits them. Expect more precise labeling with an emphasis on clean, simple ingredients.
- Sustainability stories: Highlighting the eco-conscious journey of each product — from sourcing to packaging — will become a key marketing tool.
- Health benefits: Non-alc brands that can back their claims with scientific evidence will win over skeptical consumers, making education a core part of their strategy.
ERP: A Production Powerhouse in the Non-Alcoholic Industry
Efficiency, quality control and scalability cannot be overstated. As consumer demand skyrockets and new product lines emerge, beverage companies face increasing complexities in production and operations. This is where beverage ERP software acts as a digital backbone to streamline and optimize processes.
Streamlining Production
Non-alcoholic beverage production often involves intricate processes, particularly for products like non-alcoholic beer or spirits, which require alcohol removal while preserving flavor profiles. ERP software simplifies this complexity by:
- Automated scheduling: ERP systems enable real-time production scheduling, ensuring that resources — ingredients, labor and equipment — are allocated efficiently.
- Batch tracking: The ability to track production batches from raw ingredients to finished goods ensures consistency across large volumes. This is especially important for replicating the taste of traditional alcoholic beverages.
- Recipe and formula management: ERP solutions allow producers to manage and adjust recipes precisely, helping maintain taste integrity while meeting scalability demands.
Enhanced Inventory Management
Inventory management is critical in beverage production, where supply chain disruptions can lead to costly downtime. ERP software takes the guesswork out of inventory management by providing:
- Real-time visibility: ERP systems offer a centralized view of inventory levels, helping producers avoid shortages of key ingredients like hops, botanicals or flavor additives.
- Demand forecasting: Advanced analytics built into ERP platforms predict future demand trends based on historical data and market insights. For example, an uptick in sales during “Dry January” can be anticipated and planned for months in advance.
- Waste reduction: ERP systems reduce waste by optimizing inventory turnover and tracking perishable materials, a critical factor in sustainable production.
Precision in Quality Control
Quality is non-negotiable in the non-alcoholic beverage industry, where taste and consistency are paramount. Beverage ERP software plays a pivotal role in ensuring every bottle or can meets the highest standards:
- Ingredient traceability: ERP software tracks every ingredient from supplier to final product, ensuring compliance with food safety regulations and enabling rapid recalls if necessary.
- Real-time quality checks: Integrated quality control tools allow real-time monitoring of critical parameters — such as pH levels or carbonation — during production.
Scaling Operations with Agility
The explosive growth of the non-alcoholic category demands production systems that can scale quickly and efficiently. ERP software enables this scalability by:
- Modular expansion: As new products like THC-infused drinks or functional beverages enter the market, ERP systems can seamlessly integrate additional production lines, categories and workflows.
- Cost efficiency: ERP software helps producers optimize budgets and maintain competitive pricing by providing insights into production costs and operational bottlenecks.
- Global supply chain management: ERP platforms facilitate global supply chain coordination for companies expanding internationally, ensuring consistent product availability in diverse markets.
Data-Driven Decision-Making
Non-alcoholic beverage ERP software doesn’t just streamline operations — it provides valuable insights that drive strategic decisions. With advanced analytics and reporting capabilities, beverage companies can:
- Identify trends: Monitor sales data to identify rising product categories (e.g., zero-proof spirits vs. non-alc beers) and align production strategies accordingly.
- Optimize pricing: Use production cost insights to refine pricing strategies and improve margins.
With ERP at the helm, non-alcoholic beverage companies can precisely navigate the complexities of production, ensuring they remain competitive in an expanding market.
Charting New Territories With Non-Alcoholic Beverages
So, what’s your next move? Whether you’re cracking open a cold hop water, mixing a zero-proof martini, or exploring the world of THC spritzers, there’s never been a better time to drink (and think) differently.
Let’s talk about how Crafted ERP can help your beverage business!
