Consumers are becoming increasingly focused on health and fitness, and alcohol consumption is declining as a result. The number of non-drinkers rose from 16% to 20% between 2011 and 2021 (1), and more than one in four consumers said they wanted to reduce the amount of alcohol they drink in 2024 (2). These shifts in behaviour are driving innovation in alcohol flavouring, across the beverage industry, where demand for low and no alcohol products continues to grow.
While this trend spans all demographics, younger consumers are moving away from alcohol faster than older age groups. In 2021, 38% of 18–24 year olds said they do not drink alcohol, compared with 15% of 55–74 year olds (1).
As a consequence, low and no alcohol drinks have surged in popularity, with products using this positioning showing +20.69% CAGR (3). Demand is especially strong among younger consumers, with 44% of drinkers aged 18–24 saying they regularly or occasionally order low or no alcohol drinks (4).
This shift creates a valuable opportunity for new product development using alcohol-inspired flavours, without the alcohol itself. Below are the key drivers behind the trend, and how Plant-Ex can help you turn them into commercial innovation.
Health Factors
Health is one of the strongest forces driving reduced alcohol consumption, with both physical and mental wellbeing playing a role.
The NHS highlights physical benefits such as lower blood pressure, reduced risk of stroke, hypertension, cancer and liver disease, lower cholesterol levels, improved sleep, better memory, and support with weight management (5).
Mental health is also a significant factor. As alcohol is a depressant, higher consumption can contribute to anxiety, depression and reduced self-esteem. It is likely that COVID-19 accelerated this trend, with the pandemic linked to a 25% increase in anxiety and depression worldwide (6) and increased health anxiety across many populations.
Cost Factors
Cost is another major driver of reduced alcohol consumption. Research suggests the average drinker spends an estimated £62,899 on alcohol over a lifetime (8). With the cost of essentials rising, consumers have less disposable income, and inflation has also increased the price of alcoholic products, making them harder to justify for many households.
Opportunities
Interestingly, despite cost being a common reason for reducing alcohol intake, low and no alcohol products can often be priced higher than standard alcoholic beverages (9). This creates two clear opportunities for food and beverage innovation that Plant-Ex can support.
Strategy 1: Build competitive advantage in beverages using a focused differentiation strategy. This approach targets consumers who are motivated primarily by health factors and are willing to pay more for premium products that meet their needs.
The strongest application for this strategy is a premium no or low alcohol beverage with elevated branding, sophisticated flavour combinations, and a premium price point. Plant-Ex can help you create distinctive flavour profiles that position your product as a leader within the category.
Strategy 2: Create advantage in food using a cost-focused strategy. This approach targets a growing audience seeking budget-friendly alternatives that still deliver the appeal of alcohol-inspired flavours, without the cost of alcoholic beverages.
This strategy opens up a wide range of creative applications including confectionery, ice lollies, ice cream, bakery, and sports nutrition, where alcohol-style flavour profiles can provide a unique point of difference.