The Rising Demand for Low- and No-ABV Drinks (and What That Means for Operators)

Introduction

Low- and no-alcohol beverages are no longer experiments on menus or thoughtful considerations for sober guests. They are now a rapidly expanding category transforming consumer expectations of beverage programs. Forecasts from the International Wine and Spirits Record (IWSR) show that the no- and low-alcohol segment across 10 key markets is expected to expand at a +4 % volume CAGR (compound annual growth rate) through 2028, with the no-alcohol subsegment leading growth at +7 % CAGR over the same period.

In 2024, the no/low-alcohol category posted double-digit volume growth (+13 %) across the top 10 markets, recruiting 61 million new consumers into the no-alcohol space and 38 million into low-alcohol. This data indicates that growth is not just coming from substitution, but from new consumption occasions and expanding participation. As full-strength alcohol volumes flatten or decline, the no/low segment is gaining share.

For beverage directors and bar managers, these shifts demand a strategic response; menu planning, team training, sourcing, and marketing must evolve to serve discerning guests who want more than “just non-alcoholic.”

Why This Momentum Isn’t Temporary

The growth of no and low alcohol drinks is driven by overlapping cultural, behavioral, and generational shifts. What began as a wellness-oriented trend has evolved into a deeper, more nuanced demand for experience, flavor, and choice.

Younger drinkers—Millennials and Gen Z—are especially influential in this shift. Many now practice what operators call blending behavior, alternating between full-strength and no/low options within the same visit or occasion. They’re not necessarily abstaining; they’re curating their experience.

As the category matures, motivations are becoming more complex. Health and moderation remain foundational drivers, but they now sit alongside taste, availability, brand identity, and social acceptance. Consumers expect no and low options to deliver craftsmanship, narrative, and sensory satisfaction comparable to their alcoholic counterparts.

Availability and visibility have also become critical. In many markets, lack of accessible choices or thoughtful placement holds back adoption. When no/low drinks are relegated to a footnote on menus—or hidden out of sight—consumer inertia wins.

For operators, the message is clear: no and low is no longer a fringe idea. It’s a core, strategic category with its own dynamics and expectations. Those who invest in curation, training, guest storytelling, and intentional placement will be the ones who turn moderation into momentum, even when budgets are tight.

What It Means for Bar Operators

Give low and no alcohol options a clear place on the menu rather than hiding them in a corner. Feature them under a section like “Mindful Drinks,” “Zero & Low,” or “Flavor-Driven Alternatives,” and use confident, sensory language such as “botanical tonic,” “herbal spritz,” or “zero-proof aperitif.” Presentation should match the care given to full-strength cocktails in glassware, garnish, and storytelling. Guests should feel that these drinks are intentional, not secondary.

Be strategic with purchasing. Many no/low products have higher production costs, so margins can be tight. Work closely with distributors to manage pour costs and case tiers, and focus on SKUs that can be used across multiple drinks or resonate with repeat guests. A smaller, high-performing list is better than one filled with novelty items.

Your team’s enthusiasm is essential. Hold tastings and coaching sessions so bartenders can confidently recommend no/low options. Encourage language that integrates them naturally, such as “If you like this profile but prefer something lighter, we have a zero-proof version,” rather than “Would you like a mocktail?”

Finally, treat the category as part of your identity. Promote no/low pairings, daytime offerings, or zero-proof digestifs through menus, staff recommendations, and social media. Track performance with simple metrics—sales mix, attach rates, and guest sentiment—and adjust seasonally. Refresh offerings with purpose, not novelty, and evolve based on guest response and team feedback.

How to Roll Out

Begin with a pilot: choose 3–5 foundational low/no SKUs and build 1–2 well-balanced drinks to test in one or two units. During that pilot, host staff tastings, solicit feedback, and refine recipes. Once you’ve proven the concept and built internal championing, formally integrate the menu: assign a dedicated section on your menu or beverage app, feature low/no alongside full-strength offerings, and emphasize discoverability.

Simultaneously, train your team. Use guided tasting sessions and role-play sales language so bartenders feel confident recommending these drinks. Pre-shift prompts or “guest profiles” cues can nudge them to think low/no options as part of the conversation.

When you launch publicly, pair the rollout with marketing: social media announcements, staff picks, pairing nights, and zero-proof specials. Emphasize inclusion and flavor, not abstinence. Make your low/no offerings visible and enticing.

After a period (e.g. 8–12 weeks), review performance data: penetration, attach rate, SKU velocity, waste, and guest comments. Remove underperformers, deepen your core lineup, and rotate in new SKUs based on guest feedback and emerging trends. Over time, you may expand to seasonal or limited-edition low/no builds to keep the program fresh.

Conclusion

The rise of low- and no-ABV drinks is more than a fad. It’s a structural shift in consumption behavior, especially among younger legal drinking cohorts who seek balance, complexity, and choice. To capture the opportunity, operators must treat these drinks as a full, strategic category—not a sideline.

By approaching menu design, training, sourcing, and marketing with the same rigor afforded to full-strength cocktails, you’ll position your beverage program ahead of the curve. Those who lean into this evolution now will benefit from guest loyalty, incremental revenue, and brand relevance in the next era of drinking.