The alcoholic beverages industry is going through an unprecedented wave of changes with the boom of Low and No Alcohol (Lo No) offerings. If, a few years ago the Craft movement tore down the entry barriers into spirits, the Lo No momentum is widening the competitive space to include soft drinks and reflects a wave of innovation which questions even the DNA of some established spirits brands.
The innovation experts at Brand Reveal have compiled 11 key trends in the Lo No space with an overview of 6 beverage categories developments from over 40 publications and close observations. The variety of the sector shows that players who wish to to succeed in this space, need a smart strategy, consumer driven propositions and fresh ideas that make sense.
The top line of the findings show that the Lo No Alcohol category is :
- growing fast and becoming seriously big;
- everyday more popular among young adults;
- driven by health, self care and social image;
- a way to enjoy moderation and to explore new horizons at the same time;
- an opportunity to build margins provided there is a flavour added value;
- not exempt from packaging sustainability expectations.
On the categories initiatives, our observations include:
- A rush from Spirits brands into Lo No alcohol in the form of line extensions or creations;
- A catch up game by beers and classic RTDs to get a slice of the Hard Seltzer action;
- A revival of the No alcohol beers with life style platforms;
- The multiplication of CBD / THC propositions to bet on possible legislative evolutions.
For a free copy of the 30 pages “The Low & No Alcohol Beverages Panorama” report, OR an exploratory conversation on how to drive successfully ideas through these innovative times, do contact us. You will not regret it. [email protected]