Alcohol adjacents offer ‘unique opportunity’ in no/low space

As no-alcohol products continue to dominate opportunities within the buoyant no/low space, alcohol adjacent beverages are emerging to offer tantalising growth prospects among younger LDA+ consumers in particular.

According to IWSR’s No/Low-alcohol Strategic Study 2025, no/low alcohol volumes in the world’s leading 10 markets grew by +4% in 2024, with value rising by +6%. IWSR projections for 2025 predict a +9% volume gain for no-alcohol products, with low-alcohol declining by -2% versus 2024. No-alcohol volumes are forecast to expand by 36% to 2029.

Although dwarfed by ‘analogue’ products such as no-alcohol beer, wine, RTDs and spirits, alcohol adjacent products are gaining ground, with volumes rising by +11% in 2025, according to projected IWSR data.

This is also reflected in IWSR consumer research analysing consumption incidence of alcohol adjacents among no-alcohol drinkers, which rose to 19% in 2025 across the top 10 markets, significantly higher than in 2022. Consumption incidence is even higher in the US at 33%, and among Gen Z consumers at 30% across the top 10 markets.

“No-alcohol analogue TBA categories lead the no/low market in volume terms, but strong growth and innovation continue in the alcohol adjacent space, boosted by the involvement of celebrity founders,” explains Susie Goldspink, head of no/low insights.

“Consumer awareness of mental health, anxiety disorders and stress management is at an all-time high. Functional products that target any of these issues, or improve sleep quality or energy levels, are on the rise. New ranges often include a portfolio of products that each offer a specific unique effect, such as uplift, unwind, calm, focus and so on.”

Alcohol adjacents encompass a variety of product types, including non-intoxicating hemp beverages (such as CBD drinks); functional, non-intoxicating beverages targeted at adults (nootropic and adaptogenic beverages); and non-functional, no-alcohol products using alcohol cues (botanical, bitter, vinegar-based products, plus wine alternatives, sparkling tea and fermented products).

They are proving especially popular among younger LDA+ consumers, with Millennials and Gen Z accounting for more than three-quarters of the alcohol adjacent consumer base across the top 10 no/low markets.

Motivation to purchase

Crucially, where alcohol adjacents differ from other no-alcohol products is in the motivation to purchase: rather than viewing them through the prism of health and alcohol reduction, consumers are more likely to use them to replicate the effects of alcohol, using their functional benefits for unwinding, an alcohol-like ‘buzz’, or mood enhancement.