Still, making alcohol-free drinks that taste like the original is not easy. The beer industry, which began producing alcohol-free products in the 1970s, is furthest along in this. That is partly why beer makes up 89 per cent of sales of non-alcoholic drinks, with wine and spirits accounting for just 7 per cent and 4 per cent respectively, according to Bernstein.
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Rather than heating beer to evaporate the alcohol, which ruins the flavour, producers have come up with various alternative brewing techniques, many of which are closely guarded secrets. The Athletic, a popular brand in America, is trying to patent parts of its production process.
The race is now on to develop techniques for alcohol-free wine. Although there are ways to remove alcohol from wine, including reverse osmosis, which involves filtration, and spinning-cone technology, which uses centrifugal force, these often ruin the taste too. Whereas beer gets its flavour from hops and carbonation, alcohol gives wine much of its flavour and mouthfeel. “We are 20 years behind beer,” says Moritz Zyrewitz, founder of Gentle Wine, a German low- and no-alcohol brand.
There are other challenges to further expanding the non-alcoholic-booze business. Some consumers baulk at the price of products. Alcohol-free aperitifs, which are mostly a mixture of spices and botanicals, can sell for about $40 a bottle. In a recent survey of Americans by The New Consumer, a website, and Coefficient Capital, an investment firm, 38 per cent of respondents said that non-alcoholic drinks should cost “a lot less” than alcoholic ones.
Social pressure also continues to be a barrier. In a survey of five countries by Heineken, a brewer, and the University of Oxford, 15 per cent of respondents said they had been “called out” by others for choosing a non-alcoholic drink.
Brands are doing what they can to lift the appeal of alcohol-free alternatives. Corona Cero, produced by AB InBev, another drinks giant, was an official sponsor of last year’s Olympic Games; Heineken 0.0 per cent sponsors Formula 1. Lucky Saint, another alcohol-free beer brand, opened its own pub in central London, which serves both alcoholic and non-alcoholic brews.
Celebrity booze start-ups that offer non-alcoholic alternatives may also help convert drinkers. Blake Lively, an actress, Katy Perry, a singer, and Lewis Hamilton, a Formula 1 driver, have all launched drinks brands in the past few years that offer non-alcoholic booze.
For now, alcohol sales, which reached $1.8 trillion globally in 2023, are hardly slumping. Spending in many developing economies continues to rise along with incomes. And the overall share of Americans who drink alcohol has remained steady at about 60 per cent over the past two decades, according to Gallup. More intemperate older consumers are making up for the sobriety of youngsters.
Retail sales at beer, wine and liquor stores in America continue to climb steadily. Plenty of consumers will celebrate the end of Dry January with a full-strength tipple.
© 2025 The Economist Newspaper Limited. All rights reserved.
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