22/01/2026

No-alcohol and functional drinks both booming but for different reasons

22 January 2026 – London Both no-alcohol drinks and the “alcohol adjacent” drinks (including functional beverages) are surging in popularity, but, according to new data released by IWSR today, the two categories are not in direct competition. Consumption of each category is driven by diverging consumer trends.

In a survey of no/low-alcohol buyers across ten key markets, the most commonly cited motivations for buying no-alcohol analogue products like no-alcohol beer or no-alcohol wine were health related. 37% of those choosing no-alcohol beer and 40% of those choosing no-alcohol wine and no-alcohol spirits cited “a healthy lifestyle choice.”

Meanwhile, only 26% of respondents cited choosing “alcohol adjacent” drinks for the same reason, a lower percentage than any no-alcohol analogue product. Alcohol adjacents include non-intoxicating hemp beverages, nootropic and adaptogenic functional beverages, and drinks with alcohol cues such as botanicals, sparkling tea, and fermented beverages.

Alcohol adjacent beverages were most likely category to be chosen “to experience similar effects to alcohol through functional ingredients” (17%), or because “I was curious to try it” (20%).

Despite catering to different consumer needs, the two categories are poised for continued rapid growth.

IWSR expects the global volume of no-alcohol analogues (including no-alcohol beer, wine, RTDs and spirits) to have grown by +9% in 2025. The category is forecast to grow 36% by volume between 2024 and 2029, reaching over 18 billion servings of no-alcohol analogues in 2029 (enough for every person on the planet to consume two each).

Although growing from a much smaller base, alcohol adjacent beverage volumes are also surging. IWSR expects the category to have grown by +11% volume during 2025.

According to IWSR Head of No & Low Alcohol, Susie Goldspink, the beverage alcohol sector must prepare for diverging consumer preferences to fully capitalise on the two growing trends.

“No-alcohol analogues like no-alcohol beer and wine are an increasingly popular way for drinkers to moderate their alcohol intake. By mimicking the taste and appearance of alcoholic beverages, drinkers who want to moderate can participate fully in occasions without feeling left out.

“Alcohol adjacent drinks are also growing in popularity, but consumers are using them in a different context, choosing them more for their functional benefits rather than as a mechanism for moderation.

“Both categories are poised for continued strong growth, but most likely as distinct products, not competitors.”

About IWSR: For over 50 years, IWSR has been trusted by the leaders of global beverage alcohol businesses as an integral part of their strategic planning and decision-making processes. We uniquely combine proprietary longitudinal market data, consumer insights and AI-enhanced data science, with valuable on-the-ground human intelligence in 160 markets worldwide, to decipher what is really happening in the global beverage alcohol market. With access to our data, clients from across the drinks industry, including multinational spirits, beer, and wine businesses; packaging and ingredient manufacturers; distributors; and financial institutions, plan their strategies and future investment with a reliable, consistent and complete understanding of the global landscape.

Notes to journalists:
The consumer data mentioned above is sourced from the results of a custom online survey conducted during August 2025 in Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, the United States and the United Kingdom. The total responses received: n = 7,973 consumers of legal drinking age (LDA), of whom no/low-alcohol buyers were represented by n = 4,181.

For interview requests or questions, please contact:
Ned Vaught
Ned.vaught@theiwsr.com

+44 (0) 7969 794568