Trend description Alcohol consumption is starting to decline due to consumers' significant health awareness. Everything is getting healthier and more organic, and winemakers have begun experimenting with no and low-alcohol wine to be ready to serve Gen Z's needs.
A study by Berenberg found that respondents in their teens and early 20s drank over 20% less per capita than millennials did at the same age. Furthermore, 64% of Gen Z respondents said they expected to drink alcohol less frequently when they grew older than today's older generations do. Gen Z respondents said they drank less because of health and hangover-related concerns as well as because of worries about being judged by friends or parents, according to the Berenberg analyst. Plus, 16- to 22-year-olds don't think drinking is that cool anymore. Furthermore, they favor low or no or low alcoholic beverage products. Overall, alcohol is less appealing to Gen Z, who are concerned about alcohol's impact on their mood, health, and image on social media. They are moderate drinkers spending less money on alcohol. The younger generations' unique preferences are driving innovation in the alcohol sector.
Drinkaware found in their 2019 study that Gen Z is not drinking at all or drinking less often than older generations. The study found that 16- to 25-year-olds were more likely to be sober than people above the age of 25, according to News18. They found that 15% of people in this age range had a firm stance of not drinking alcohol, with 26% of them not drinking any amount, compared to older generations (55- to-74-year-olds). Senior research fellow Amy Pennay at the Centre for Alcohol Policy Research at La Trobe University, Melbourne, suggested to Desert News that the decline in alcohol consumption in Gen Z is more likely coming from the awareness that the generation has of the health risks associated.
Consumers are willing to spend more money on healthier and more organic beverages with sustainable packaging. This is due to their increasing environmental concerns and health awareness. Younger generations are the most concerned with global challenges. According to a study by First Insight, 73% of Gen Z reported that they were willing to pay more for sustainable products, with 54% saying they would pay more than a 10% increase in price for a sustainably made product.
According to a comprehensive research report by Market Research Future, the Low Alcohol Beverages market is projected to reach USD 889.7 Million by 2028 at a 4.3% CAGR. The ready-to-drink segment will especially earn high revenue for the low-alcohol market according to the report. The market in the UK also has considerable potential. Research by German producers Reh Kendermann and Kantar Worldpanel shows that low-alcohol wine (0%-0.5% wine) is the fastest-growing sector and is worth about 27 million pounds in the UK.
The cannabis growing industry is seen as a part of the enormous health-conscious wave. The trend represents a significant opportunity for US-based beverage companies. Savvy beverage companies are looking to position themselves uniquely by offering new products that include ready-to-drink CBD beverages. According to Brightfield Group, by 2025, cannabis beverages are expected to exceed $1B in annual sales, a trade group for CBD, Cannabis, and wellness products. While cannabis is becoming more mainstream and Gen Z is looking for alternatives to alcohol, it makes sense that CDB beverages are the next upcoming thing.
Better-for-you wine spritzers
We have seen many businesses take upon this low alcohol trend. The cocktail industry has made it possible to buy ready-to-drink low-alcohol cocktails. Also, the beer industry is known for producing low-alcohol beers. Now wine brands are experimenting with low-calorie and low-alcohol wine. Wine spritzers are simple to make, thanks to the combination of wine, soda, and ice. The easy-to-drink seltzer meets the demand for low alcohol choices and is often low in calories and packed in a can so that it can be enjoyed anywhere.
New brands are launching sparkling canned wines to attract Gen Z. One of these brands is Babe, founded in 2016 by Josh "The Fat Jewish" Ostrovsky and brothers David Oliver Cohen and Tanner Cohen. The company was launched with the mission to introduce fun, inclusive, and portable wine products to Gen Z. Since then, the founders have seen a gap in the market for healthier wine for consumers wanting to drink wine in another way. The research found that 64% of Gen Z said they expected to drink alcohol less frequently when they grow older than the older generations do now. Therefore, they launched a new product line called BABE 100 in 2021.
BABE 100 is sparkling canned wine with only 6.9% alcohol instead of the 12% that most wines contain. Furthermore, sparkling canned wine only contains 100 calories and zero grams of sugar. This is fewer than half of the calories that most wine has. BABE wine has tried to incorporate the best of both worlds in wine and seltzers. Chelsea Phillips, general manager of the Babe brand, says: "We wanted to balance the scales a little for what people define seltzer as today. Seltzer is one of the fastest-growing categories in alcohol, and over one-third of seltzer drinkers came from wine".
Babe has launched a sparkling Babe Rose, Babe Grigio, and Babe Rose. According to IRI, from 2016-to 2020, BABE's CAGR was nearly 2,000%.
The company Cool Cat launched in April 2020 and creates naturally flavored gluten-free spritzers made on a base of Pinot Grigio and cane sugar. The flavors of the wine spritzers vary with options ranging from berry, citrus, elderflower/mint to grapefruit. They are positioned as a better-for-you alternative and boast just above 150 calories per can. Cool Cat was recognized as the 'Best Spritzer of 2021' by Liquor.com and awarded a Gold Medal by The Fifty Best. "The larger spirits and wine conglomerates need to step up and commit to supporting and investing in minority-owned and operated companies," the founder Rocco Venneri, who identifies as a Black/mixed race gay man, tells Forbes. The founder believes he had created a gender-neutral, original, high-quality product inclusive of all genders, ethnicities, and sexual orientations.
Picture: Cool Cat
According to a new report published by Allied Market Research, titled "CBD Wine Market," The global CBD wine market size was valued at $11,100 thousand in 2021 and is projected to reach $112,458.2 thousand by 2031, growing at a CAGR of 27.8% from 2022 to 2031. Although the market is still in its early stages of development, the hemp-derived CDB wine segment accounted for a 75.4% revenue share in 2021. According to the report, consumers spend more on alcohol-free and CDB-infused products, mainly in North American countries.
Cannabidiol has health benefits, such as releasing pain and inflammation, and has started popping up as a wellness trend to help with anxiety. Cannabidiol has a calming effect; therefore, infused beverages can make you feel calmer. Furthermore, when drinking a CDB or TCH beverage, you don't get hungover as you would with alcohol and therefore struggle with "hangxiety". The potential health benefits of CDB products are expected to drive the global CDB wine market. Furthermore, several countries have legalized the production and cultivation of cannabis, which creates a new demand for CDB wine.
CDB-infused wines blend wine and CDB to allow consumers to enjoy both products in a drink. Wine infused with CBD often contains less alcohol or is dealcoholized, allowing consumers to enjoy larger quantities without the negative effects of consuming alcohol.
In 2022, The 66° Beverage Company realized its first-to-market dealcoholized CDB wine beverages, fusing everyone's love for wine and cannabis. Their CDB-infused wines contain 25mg of broad-spectrum Cannabidiol, specially formulated to take effect within 10 to 20 minutes of consumption. With its homegrown de-alcoholization process, the company formulated a drink with lower calories, sugar, and carbohydrates. The drinks will seek to give the consumer the same kick as consuming wine but without the negative effects of alcohol.
The popularity of alcohol and cannabis is undeniable, with Millennials and Gen X leading the consumer base, followed by Gen Z. 66° Beverage Company catering to a distinct niche in the beverage industry and is the first-to-market provider of such a product. The CDB-infused no-alcohol wines come in different varieties, including Rosé, White, and Red, which are characterized by their flavor but come in low-alcohol content (0.5 ABV).
SipClean is an alcohol-removed wine for adults seeking a high-quality, real wine experience without the negative effects of alcohol. The female-founded brand is designed to share the wellness benefits of cannabis without the undesirable effects of consuming alcohol. Sip cozy has noticed a gap in the beverage market, creating the world's first alcohol-removed hemp-infused rosé wine. The wine offers a dealcoholized alternative, created with Millennial women in mind.
Picture: Sip Clean
Picture: Sip Clean
Picture: Sip Clean
Infused wines that offer a new flavor experience
The shift in focus to flavor and nutrition has caused consumers to demand new kinds of wine and has made brands more creative. Beverage brands are creating a wine with new and more unique flavor experiences. Wines infused with unlikely flavors are gaining popularity within the Gen Z demographic. Pairing ingredients not seen together results in new flavors that wake up consumers' attention.
The company Vin Crowd has entered a collaboration with the clothing brand Nasty Girl to create a new ready-to-drink wine brand that caters to Gen Z. Vin Crown's Brand Manager Fiona Nicholls states, "Nasty Gal taps into a young shopper demographic; for us, this is the of-age drinkers and students. We know from how these shoppers interact that they are looking for social tribes, which reflects in what they purchase." The wine only contains 91 calories and is priced at £2.25. The pink spritz drink comes in a strawberry flavor called "Strawberry Feels Forever," making it an optimal summer choice.
Mawdy Bubbs infuses sparkling wine with organic tea in their low-ABV drink, which only contains 6% ABV. They offer a low-sugar and all-natural alternative for consumers who want to enjoy the taste of real fruit juice, sparkling wine, and tea. Their sunlight wine is a summer season and white wine-based drink infused with a blend of organically grown botanicals. Their tropic wine is an all-year rosé infused drink with passion fruit juice, green jasmine tea, and dried flowers. Lastly, their Roobi drink is available in the fall and consists of Marquette Grapes, raspberry, vanilla, and Rooibos tea.
Lastly, Copenhagen Sparkling Tea creates sparkling tea based on a blend of high-quality organic teas, from delicate white teas to more intense and full-bodied black teas. Their organic low-/non-alcoholic sparkling drink contains up to 13 different tea sorts, creating a subtle and complex taste. Their sparkling tea "Vinter" only consists of 5% ABV and offer warm aromas of cinnamon, cardamom, clove, and raisins, as a result of chai tea, black tea, and white tea.
Picture: Copenhagen Sparkling Tea
Picture: Copenhagen Sparkling Tea