Targeting Sober MZ Generation... Rapid Growth of US Non-Alcoholic Market

Alcohol Companies Like Coors, Diageo, and Pernod Ricard Also Making Swift Changes

As foreign media reports continue to highlight the tendency of the MZ generation (Millennials + Generation Z) to avoid alcohol for health and other reasons, American liquor companies are quickly responding to the changing drinking culture by launching non-alcoholic beers and beverages.

Beer. Pixabay

According to CNN Business, beer company Coors changed its company name to Molson Coors Beverage Company in 2019 and introduced non-alcoholic beer 'Peroni 0.0' and sugar-free energy drinks. Kevin Neitz, the company's vice president in charge of non-alcoholic products, explained that sales in the non-alcoholic beverage sector in the U.S. have increased by nearly 70% over the past year.

World's largest beer company Anheuser-Busch InBev, famous for 'Budweiser,' is also expanding its non-alcoholic beer products such as Budweiser Zero and Stella Artois 0.0. Although specific figures were not disclosed, the company stated in its 2023 annual report that non-alcoholic beers continue to deliver strong performance.

Distilled spirits and wine companies are also joining the production of non-alcoholic alcoholic beverages to respond to market changes. Diageo, which owns over 200 liquor brands including Johnnie Walker, acquired the non-alcoholic distilled spirits brand 'Ritual Zero Proof' last September, stating that it "can offer consumers more choices and diversity."

Pernod Ricard, one of the world's largest liquor companies owning premium whiskey brands such as Chivas Regal and Ballantine's, also launched a non-alcoholic gin last year. Mo?t Hennessy attracted attention by investing in the non-alcoholic sparkling wine 'French Bloom' last year as well.

Earlier, a Gallup survey conducted in August last year showed that nearly half of Americans responded that drinking one or two drinks a day is not good for health, the highest proportion in the 23 years the survey has been conducted. The percentage of adults who reported drinking alcohol also decreased from 67% in 2022 to 58%.

Alcohol market analysis firm IWSR forecasted that the global non-alcoholic beverage market will grow to $4 billion by 2028. In a report last month, IWSR diagnosed that the global non-alcoholic beverage market is "experiencing a growth transformation driven by evolving consumer behavior and the momentum of non-alcoholic beverages."