By Fiona McKinnon
The pursuit of a healthier lifestyle, coupled with the growing consumer emphasis on service and experience, makes this an ideal time to launch NOLO products that benefit those who can move quickly...
The "NOLO (alcohol-free and low-alcohol)" market is experiencing rapid growth, in part because the lockdown has stimulated health awareness and the desire to pursue new experiences. Related research predicts that the NOLO market will grow by more than 30% by 2024. But will NOLO really be the future of alcoholic beverages?
The NOLO trend is sweeping the globe
According to the beverage market analysis report of IWSR, an authoritative international wine research institute, as consumers shift to healthier living and conscious consumption, the sales volume of NOLO drinks will reach nearly 19 million cases in 2021, worth 741 million US dollars.
The Society of Independent Brewers found that drinking trends are changing, with just over the past year a third of young people drinking less. In 2021, NOLO drink sales in UK supermarkets grew by 50% to £200 million. In the UK, any beverage labeled 'low alcohol' must have an alcohol content of less than 1.2% and any beverage marked 'non-alcoholic' must have an alcohol content of 0.05% or less.
British supermarket chain giant Tesco says about a quarter of UK adults drink only non-alcoholic and low-alcohol beverages during The Christmas season. The company said sales of NOLO spirits have soared 106 percent since early 2021, while Sainsbury's said NOLO spirits grew 91 percent year-over-year and overall sales in the NOLO category increased 24 percent compared to 2020.
This trend has also seen significant growth globally. Nielsen CGA's research shows that 58 percent of respondents drank more NORO drinks at the end of 2021 than a year ago, and 8 in 10 were eager for more NOLOs.
In the U.S. and U.K., 1 in 4 consumers plan to drink cocktails that are lower in alcohol and more that are not alcoholic. According to bacardi's 2021 holiday spending survey, more than half (53%) of global consumers also intend to follow the "Dry January" campaign, with 38% saying they did so to improve their drinking habits.
Healthier, more convenient, more popular
For those who enjoy fine wine regularly, NOLO means that you can enjoy your favorite drink at any time. People are now more able than ever to experience the same complex flavors without worrying about headaches the next day and declining productivity.
NOLO is also considered a healthier option because each unit of alcohol contains 57 calories, and if you swap out a beer with 4.5% alcohol for a 0% or 0.5% beer, alcohol alone can reduce caloric intake by 145 calories.
Social media has played an important role in the spread of NOLO, with Instagram users sharing their favorite mocktails every day. In addition to being trend-driven, consumers are often influenced by celebrity tastes. When celebrities showed off their favorite NOLO drinks on social media, the public followed suit. As we all know, household names have extended their own NOLO product lines, and the famous movie star Spencer Matthew's brand Cleanco is a good example.
Trailblazing Cleanco is one of the fastest growing NOLO brands on the market, and its unique portfolio has swept the segment. Spencer Matthews founded the brand in 2018, seeing a lack of products in the NOLO market that could truly replace alcohol-free spirits. With the development of complex distillation processes, Cleanco is now able to replicate the taste of standard spirits, offering a full range of nulo drinks that taste wonderful, and Spencer's fame has driven their development.
While NOLO beer and wine has been around for decades and continues to dominate sales in the NOLO category, there has been demand and supply of low/non-alcoholic alternatives in all areas of alcoholic beverages over the past five years.
Beer and cider currently dominate the space, accounting for 92% of all NOLO products in the market. But BevZero, which specializes in making NOLO drinks, predicts that could change.
Debbie Novograd, CEO of BevZero, said: "The non-alcoholic beverage category beyond beer and cider is in its infancy, with new product launches every day. ”
Growth momentum comes from "innovation"
However, the cost of NOLO drinks is comparable to that of ordinary spirits, so the purchase volume is still small. This reflects the fact that while the NOLO market is growing rapidly, it only accounts for around 3% of the UK wine market. Nonetheless, according to IWSR's forecast, the global NOLO market will grow by 34% by 2024.
Without innovation, 34% of market growth would not have been possible. Since there is a need to act as a comprehensive alternative to spirits, it is important to pay attention to taste, as consumers are not easily "persuaded" by the inability to accurately "imitate" their favorite flavors. They demanded that NOLO rival alcoholic beverages in taste, complexity, and craftsmanship, rather than compromise on taste — something that soft drinks can't achieve. As a result, we are in the midst of an innovation boom in the NOLO category, where their demand for quality, taste and experience is at an all-time high.
The new generation of NOLO is centered on "style" and "refinement", and one of the parts that cannot be ignored is packaging. Creating exquisite bottles helps drive the growth of the NOLO brand, and the use of amazing packaging that appeals to every consumer is key to unlocking this growing market.
People who reject alcohol are increasingly dissatisfied with the range of alternatives and are beginning to expect more from alcohol-free products. Offering innovative ingredients and product portfolios in the "Better for You" beverage category will continue to improve the category's positioning and push more big brands to create their own alternatives. Novograd said offering a range of NOLO drinks satisfies consumer expectations and desire for choice. Adding new ingredients to the NOLO category will also ensure a wide selection of CBD, THC and botanical ingredients, as well as the launch of non-alcoholic functional beverages.
"Consumers are looking for moderation, not just moderation." Novograd believes that manufacturers need to pay more attention to high-end to promote the development of the category. "As consumer interest increases, so does the expertise and technology in this area, meaning better and more options for those who want to drink less."
The innovation and quality of the new round of NOLO drinks is also reflected in its high price tag. Consumer venues manage to embody these ingredients and processes and how to present their creativity – whether on the menu or in a wine glass, which can bring higher price points and create a luxurious experience.
The pursuit of a healthier lifestyle, coupled with a growing consumer focus on service and experience, makes this an ideal time to launch NOLO products that will benefit those who can move quickly.
(Translated by Xu Feiyuan, reporter of this newspaper from www.scotsman.com)