Non-alc trends at a glance:
Growth in Non-Beer Categories: While beer remains the most commonly purchased zero-alcohol beverage, the growth in zero-alcohol wine, spirits, and cider is rising rapidly, offering new opportunities for retailers to expand their product offerings in these categories.
Increasing Demand for Moderation: Nearly 29 per cent of shoppers have either stopped buying or reduced their alcohol purchases in the past six months. This shift toward moderation is driving interest in zero-alcohol alternatives, particularly among those under 40 and over 65, highlighting a clear trend toward more mindful drinking.
Innovation is Key to Continued Growth: Retailers must invest in zero and low-alcohol products that match the taste and quality of their alcoholic counterparts to meet consumer expectations and keep up with evolving preferences. Brands and retailers that innovate in this space will be better positioned to capitalise on the growing market demand.
Australians’ adoption of zero-alcohol alternatives has skyrocketed, more than doubling between August 2020 and early January 2025, according to data from Circana.
This shift in consumer behaviour is reshaping the landscape of the liquor industry, with new opportunities emerging in beer, wine, spirits, and ready-to-drink (RTD) categories.
Beer remains the most commonly purchased zero-alcohol drink, but its sales growth has started to plateau. Meanwhile, categories such as wine, spirits, and cider are seeing notable increases in consumer uptake.
Zero-alcohol beverages are particularly popular among those under 40 and over 65, predominantly those in pre- and post-family life stages. These consumers are often motivated by a desire for moderation and health-conscious living.
According to Circana’s data, a significant 29 per cent of shoppers reported buying fewer alcoholic beverages or halting alcohol purchases altogether in the six months leading up to January 2025.
“Zero alcohol and moderation are interlinked with nearly one-third of zero alcohol buyers motivated by a desire to reduce overall alcohol consumption.”
Andrew Gerrard, Senior Consultant, Circana
“This shows a clear shift toward more mindful drinking choices, and it’s clear that moderation plays a central role in Australians’ evolving drinking habits,” says Gerrard.
The motivations and challenges
In 2022, the top reason Australians bought zero-alcohol drinks was ‘curiosity to give it a try.’ However, by 2025, this had slipped to the fourth position, as safety concerns, particularly around drink driving, gained prominence.
Gerrard commented, “One thing is clear, the messaging about the dangers of drink driving is cutting through. Consumers are much more conscious about making safe driving choices and being able to drive after consumption remains the top influence for Aussies choosing to purchase zero-alcohol beverages.”
While the beer category faces challenges, other segments such as wine and spirits are showing more promise. Wine is the next largest opportunity in the zero-alcohol space, although further refinement in taste and flavour is still needed to fully meet consumer expectations.
Similarly, spirits, while facing high per-unit costs, hold significant potential if brands can offer products that are on par with their alcoholic counterparts.
Craft-style brands, particularly in the beer segment, are benefiting from a growing trend toward local, independent producers. Many of these brands are leveraging opportunities in the zero-alcohol space, not only in liquor retailers but also in grocery stores such as Woolworths, Coles, and IGA. This exposure is helping to broaden market reach.
In addition to craft beers, other trends are emerging, such as the growing popularity of low-carb beers and lighter lager styles, like ‘Cerveza’. There are also signs that innovation in spirits, particularly around agave-based products, is likely to gain traction as the global popularity of Tequila continues to rise.
As Australia becomes more health-conscious and mindful about alcohol consumption, the demand for zero-alcohol beverages will continue to grow. To capitalise on this shift, brands must invest in developing innovative products that match the taste, appearance, and quality of their alcoholic counterparts.
“Being able to offer high-quality, great-tasting alternatives is key to attracting and retaining consumers in the zero-alcohol space,” said Gerrard. “With more investment into zero and low alcohol alternatives, there is strong potential for continued growth.”
As the market matures, the role of innovation in maintaining momentum and meeting evolving consumer preferences will be crucial. Liquor retailers who stay ahead of these trends and adapt to consumer demands will be best positioned to thrive in an increasingly complex market.
Sources:
- Circana Market Edge – Liquor
- Circana Shopper Panel