In the midst of the Non-Alcoholic (NA) products explosion, Megusta and Brand Reveal surveyed 220 alcoholic beverage professionals online (Nov-Dec 2023) to better understand the key insights behind this burgeoning category. This concise exploration unveils industry perspectives on optimism, commitment, and innovative approaches, offering a strategic compass for stakeholders in this dynamic and promising sector. The survey shows :
1. Optimism in the NA category
A significant 60% of respondents anticipate a substantial role for non-alcoholic beverages in the future, indicating a growing optimism within the industry. This expansion is seen as broadening the adult beverage market beyond traditional alcoholic offerings, fostering healthy competition.
2. An established presence in many portfolios
While the survey may have attracted those already involved in non-alcoholic products, a noteworthy 46% of respondents declare having a non-alcoholic product in their range. This highlights that non-alcoholic beverages are not a new consideration for many players in the alcoholic beverage sector.
3. A strategic significance which requires commitment
Of those engaged in NA beverages, 60% express their importance to business, with 54% acknowledging the need for significant resources. The overall planned launches (62%) among these players, and in particular by wine producers, signifies a competitive rush to meet the growing demand.
4. Appeal beyond conventional players
Over 50% of respondents without NA offerings don’t plan to launch such products. However, 25% of these companies aim to enter the category in the next 12 months, emphasizing the allure and expanding interest in this market.
5. Skills for success: innovation and marketing
An overwhelming 71% agree that success in non-alcoholic beverages demands new skills, particularly in innovation and marketing. In this respect, brands need a creative mindset, continuous learning, and a willingness to take risks.
6. Imitate or Invent
Respondents are evenly split between imitating alcoholic products (38%) and inventing new non-alcoholic products (41%). While imitation aids consumer understanding, innovation provides freedom but demands clear product explanations.
7. Profit potential and challenges
Over half of respondents see non-alcoholic beverages as offering attractive profits, mainly due to higher margins without alcohol taxes. However, challenges arise from potentially higher production costs and the complexity of retail price strategy.
8. Building Quality
Almost 90% agree that creating non-alcoholic beverages matching the taste and quality of alcoholic counterparts is challenging. Convincing consumers that these beverages are worthy alternatives poses a tough task, emphasizing the need for innovation and consumer engagement.
9. A wide Demographics Pool
Non-alcoholic beverages seem fitting for consumers under 50, in relationships, or with children. Young adults are considered more receptive, and family-oriented occasions emerge as key opportunities. However the breadth of age spans suggest specific positioning to meet different life stage needs.
10. Motivations and Occasions
The main emotional motivations for engaging with non-alcoholic beverages indicated by respondents revolve around “affiliation” and “contentment”, indicating suitability for low to medium energy group occasions. Additional motivations such as discernment, status, release, and independence seem play a role but to a lesser extent at this stage of category development.
In understanding the evolving non-alcoholic beverages (NA) landscape, the survey reveals a promising sector with substantial optimism, strategic significance, and challenges. In order to win in this increasigly crowded space, brands needs to ensure innovation, clear offering and long term commitment.
As players delve into this expanding market, recognizing established presence from strong competitors and the strategic importance of diverse consumer motivations is key to build solid concepts. As NA expand the competitive landscape, working with external partners ensures the right inflow of fresh ideas and connection to adult consumers’ expectations.