News

The Rise of Nonalcoholic Beverage Startups: How Startups are Redefining Adult Drinks

An emergence of entrepreneurs is redefining adult drinks, introducing high-quality mimics, canned cocktails, and flavor-forward botanical alternatives. Marcos Salazar, CEO of the Adult Non-Alcoholic Beverage Association (ANBA), noted that the category has transformed significantly since the 1990s, with innovative products that emphasize quality and craftsmanship. Founded in 2021, ANBA has rapidly grown to include 150 members, reflecting a surge of interest in nonalcoholic beverages. Salazar highlighted how the market has evolved, with a notable rise in innovation over the last few years, even as nonalcoholic drinks still represent a small fraction of the overall $260 billion U.S. alcoholic beverage market.

The growth of nonalcoholic beverages is expected to continue, with IWSR projecting sales to reach $4 billion by 2027. NielsenIQ reports that retail sales of nonalcoholic beers, wines, and spirits experienced a 31% increase last year alone. As the category expands, major brands are investing more resources, but Salazar emphasized that much of the innovation is driven by smaller companies. Nonalcoholic spirits have seen remarkable growth, while beer remains the dominant segment, accounting for 85% of sales. The pandemic has also shifted consumer preferences, making nonalcoholic options more accessible and desirable in food service and hospitality settings.

Source