Non-Alcoholic Spirits In 2020 and Beyond

The Rise of Non-alc

The non-alcoholic drinks industry has exploded over the last few years and even the global coronavirus pandemic has failed to halt its rise. At Distill Ventures we’ve been closely monitoring and actively investing in companies that can bring new and exciting products to the table. With the help of the latest infographic in our series we’re on a mission to get the word out..The Rise of Non-alc

Since 2015, the no-and-low drinks sector has seen a dramatic 506% increase in global sales. In the UK alone, this sales figure grew by 30% just in 2020.

The prospect of such unprecedented brand growth has allowed 11 new brand launches in the UK and 12 in the US for 2020. This has taken the total up to 42 non-alcoholic spirits companies based in the UK and 29 in the US.

This kind of growth has presented opportunities to many established brands and entrepreneurs. The emergence of Seedlip as the market leader is a direct result of having the right product positioned in the market at the right time. Many brands have now moved into the sector or intend to this year. This is particularly evident in the UK’s more mature market space where household name brands such as Gordon’s are releasing non-alcoholic versions of their spirits.

The Non-alc Consumer

The target demographic for non alcoholic drinks brands seems to be  mainly female (56%) and aged 35 and 44 - within the UK at least. Whilst the more established non alcoholic beer brands still have the edge when it comes to distribution channels, non alc spirits are leading the way online. The online presence of these brands has kicked up a gear during 2020 with the exponential growth in e-commerce sales. These figures are largely thanks to marketplaces such as Amazon stocking a variety of non alc spirits, as well as the emergence of smaller speciality websites.

What’s Next For Non-Alcoholic Spirits?

These trends show no sign of stopping any time soon. With the increase in interest and overall market size, we expect to continue to see rapid growth and investment within the sector.

However, despite the seemingly glowing future ahead, there are several challenges that have to be overcome if the trend is to continue. These are; ensuring liquid excellence and educating the consumer on serve and how to have the best possible drinks experience. If these challenges are met with creative solutions, then we expect the trend to continue upwards.

Developing the perfect zero proof cocktail is challenging and costly at the best of times. Currently, on-premises activity has ground to a halt and with it a critical tool for brand discovery. The focus, at least for the moment, is firmly on creating home experiences.

You can find out more about the impact of the non alcoholic drinks industry in 2020 with our infographic.

For more information about the wider non alcoholic drinks industry, you can read our 2017 whitepaper entitled Non-Alcoholic Drinks: A Growth Story. You can also learn more about what Distill Ventures can offer and what we look for in candidates.