‘More interest in low and no than sales’ Club Soda report finds
Club Soda has teamed up with market research agency The Mix Global to launch the industry report ‘Free Spirited: Demystifying the audiences of alcohol-free’.
The report finds that over the last two years, interest in low-alcohol drinks has grown across the board. Online searches with the word ‘mocktail’ are up 42%, suggesting that consumers are looking for ways to drink less without sacrificing social experience.
In 2021, Global consumers explicitly mention ‘low-alcohol’ 81% more often than in 2020 with 17% of conversations around non-alcoholic drinks coming from users between the ages of 35-44.
However, the challenge lies with conversion, showing that even with high interest, people still haven’t found the right product.
To this point, one of the report’s collaborators, Dr Jussi Tolvi co-founder of Club Soda, said: “With Google searches at 10% of alcohol but sales at just 1%, there is more interest in low and no than sales. The market opportunity is still huge.”
According to IWSR (2022), the retail sales value of the low & no category is US$10bn globally. The growth rate between 2021 to 2025 is on track to be +8%, compared to just +0.7% for regular alcohol over the same period (CAGR).
Club Soda attributes this to a cultural shift within alcohol, one heralded by Generation Z, of whom one in five claims to be teetotal according to the findings.
The report also highlights the different consumer profiles low & no caters for, including those with and without a history of consuming alcohol, from those moderating their intake as they get older to those with little to no interest in alcohol but still seeking refinement, craft and novelty in their drink choices.
Laura Willoughby, founder of Club Soda added: “Selling alcohol-free can be difficult, increasingly we see that a collaborative approach is what’s needed to keep raising the profile of the category and maintain evolution in the market. This report is one step towards giving brands a framework on which to build their alcohol-free offerings.”
Gemma Mitchell, MD of The Mix Global said: “We want to challenge the echo chamber that is the drinks market, by differentiating between consumer voices and really listening to those who are buying alcohol-free. We’re excited to launch this project and give brands a helping hand forward.”
The full report is now free to download from Club Soda’s website: joinclubsoda.com/research.
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