Alcohol industry shifts strategy amid rise in non-alcoholic beverage demand

The alcoholic beverage industry is undergoing a strategic shift as major producers like Diageo, Pernod Ricard, AB InBev, and Constellation Brands adapt to changing consumer demands. Industry leaders are moving away from traditional models based solely on brand status toward experiential marketing and product diversification to engage new generations.

Data from IWSR indicates that younger drinkers are consuming significantly less alcohol than Millennials did at the same age. This trend is driving growth in the ‘No&Lo’ (non-alcoholic and low-alcohol) category, which is projected to expand by over 3.3 billion euros by 2028.

Spain has emerged as a global leader in this transition, accounting for 14% of the world's non-alcoholic beer consumption. According to a study by EAE Business School, the rise in demand is driven by health consciousness and the desire for responsible social drinking during afternoon and after-work gatherings. While older generations show high preference for non-alcoholic beer, younger consumers are increasingly diversifying into mocktails and non-alcoholic fruit liqueurs.