This Dry January, customers now have a large number of drinks to select from once they’re not indulging in alcohol. Mintel analysis exhibits customers are more and more reevaluating their relationship with alcohol and changing these drinks with new drinks. Choices embrace non-alcoholic craft beer, mocktails, hashish tonics, and even premium glowing water. This nascent AA (alcohol different) class is among the most fun areas of innovation within the beverage trade and represents development alternatives as extra customers experiment with the sober curious way of life. 

Cheers to your well being

The AA’s class’s spectacular rise has corresponded with the sober curious motion’s enlargement, making a snowball impact amongst customers seeking to cut back their alcohol consumption. New AAs make sober curiosity a extra reachable aim, whereas a rise within the variety of sober curious customers additional incentivizes innovation and product improvement. 

Actually, practically 4 in ten US customers report carefully or sometimes following the sober curious way of life, with adherence concentrated amongst younger, city, high-income customers. These customers are keen to pay a premium for distinctive, modern drinks that permit them to attain their private well being and wellness objectives.

This need for well being and wellness anchors the sober curious motion; 71% of sober curious customers fear concerning the long-term well being results of alcohol consumption in comparison with 57% of complete customers. Equally, 39% of customers comply with or would attempt following the sober curious way of life for bodily well being causes, and 29% for psychological well being causes. 

Well being might draw customers into the sober curious motion however experiences and a way of neighborhood retains engagement. Almost a 3rd of customers comply with/would comply with a sober curious way of life to attempt a brand new expertise, and 12% in an effort to be part of a neighborhood of different sober curious practitioners. This neighborhood facet of sober curiosity is clear within the rise of sober bars, in-person occasions, and quite a few on-line communities wherein customers in restoration, teetotalers, and the sober curious, join and help one another.  

AA drinks go the vibe verify

Shoppers usually attain for acquainted on a regular basis drinks comparable to soda or water as an alcoholic beverage different, but sober curious customers need extra. Distinctive taste profiles improve the AA beverage expertise past what’s sometimes out there on the common grocery retailer. Bitter, spicy, and natural flavors are extra widespread amongst sober curious customers and could also be perceived as becoming for particular events, as these choices mimic the style expertise of acquainted alcoholic drinks and cocktails. Higher-for-you claims are additionally important throughout the AA class; A 3rd of customers cite “low calorie” and “low sugar” as necessary when selecting an AA.

The key for a very profitable AA model isn’t essentially well being claims and even taste innovation however vibes, that je ne sais quoi that differentiates a model from its rivals. Shoppers need a drink that appears and feels particular when substituting alcohol, making packaging design and powerful branding crucial throughout the AA class. Memorable design resonates with younger high-income customers, the group of customers most all in favour of AA merchandise. Mintel analysis exhibits that this group of customers likes to buy meals/drinks that characteristic fashionable packaging designs greater than others. 

                                

Liquid Loss of life – The “tallboy” may give Liquid Loss of life the same look to beer, making the model a preferred selection for customers whereas at events/occasions

Kin Euphorics – The glass bottle makes the product look just like conventional spirits and would mix in on any bar cart

Curious Elixirs – The darkish glass bottle, paper seal over the cap, and design typography place the drink as a cocktail different

Barbet – Barbet’s design evokes a way of luxurious. Whereas it might not appear like an alcoholic drink, it additionally doesn’t appear like a youngsters’ drink

What we expect: Mitigation not elimination

The AA class’s rise doesn’t essentially characterize a serious aggressive risk to alcoholic beverage manufacturers as customers are primarily all in favour of making alcohol an occasional indulgence quite than going fully dry. 

Shoppers don’t need to abandon alcohol, they need to drink much less and drink higher – whether or not that be higher high quality or higher for you. Certainly, gross sales of value-tier alcoholic drinks have declined for years whereas high-end/super-premium manufacturers have loved constant YOY development. Alcoholic beverage firms should due to this fact prioritize the event of high-quality, more healthy alcoholic drinks in response to customers’ evolving preferences. 

If you’re a Mintel consumer, please contact your Account Supervisor to obtain the total Alcohol Options Report, in any other case click on right here to see how our market analysis on this trade may also help your model strategize future initiatives.