September 10, 2021
Reaching New Consumers Through Product Innovation
Addressing the Needs of Changing Consumer Preferences
As consumers increasingly look for non-alcoholic alternatives, it’s more important than ever to optimize consumer based strategies through product innovation. One of the fastest growing trends in BevAlc is non-alcoholic beverages, and now is the time to consider adding them to your product portfolio. And, if you haven’t yet tried one of the new non-alcoholic beverages on the market, you may want to, especially if you lead a product team at a current alcohol brand.
The Chalkboard Mag recently posted an interesting article pointing to reasons one might consume a non-alcoholic beverage, and therefore why this new category may be of interest. The main takeaway, if consumers are not buying your brand, they are switching to someone else’s. So what’s changed? Consumers.
There was a roughly 33% increase in volume of no/lo alcohol products through 2020 and that number is expected to grow at an 11% CAGR through 2024. There are several segments where these trends are most notable, specifically beer and wine. While beer is a more obvious transition given the efforts to create “alcohol free” alternatives over the years and requiring less education for consumers, wine and even spirits are experiencing significant growth due to many factors, including improved technology, resulting in better tasting products that are produced in more efficient ways.
Much of the change driving this new demand includes those looking to reduce or eliminate alcohol intake to lead more healthy lives, avoid the side effects of drinking alcohol, seeking out lower calorie options, and looking for an alternative when having to drive, or just enjoying social consumption without the buzz.
Of the occasions you may find your consumer looking for an NA alternative, there is one that clearly stuck out to us. What if your non-drinking guest wants a flavorful alternative? They may reach for a tonic and lime, but are more likely looking for something that looks and tastes like what “everyone else is drinking.” While many think alcohol alone is the social lubricant, the social behavior of having a “beverage” in hand is just as powerful. Help your customer stick with your brand for all of their, and their guests’, beverage needs.
Which brings us to another strong occasion for abstinence, you’re pregnant. We can substitute that for other reasons, but again, the takeaway is that you have the chance to continue to create those meaningful moments with your customers and can keep them loyal through those periods where they may physically not be able to drink alcohol.
It may be hard to believe, but if you follow the data, it will become clear. 58% of consumers expressed interest in switching to lo/no alcohol alternatives in social settings, based on survey results released recently during the No & Lo Beverage Summit North America.
Need help thinking through your new strategy or ways to bring a lo/no alcohol product to market? Contact us today to schedule an introductory call.