There’s more than one mega-trend happening in alcoholic bev choices these days. But everyone, in-cluding the experts, is surprised that non-alcoholic beverage sales are surging ahead of their alcoholic counterparts in Canada!
We’ve been hearing about the growing popularity of ‘non alcoholic’ beverages for a few years. But now, it appears the concept’s time has truly come. And its meteoric sales growth is being driven by the younger set.
Latest figures
… From the Liquor Control Board of Ontario – that province’s official, government-run beverage al-cohol sales organization – are unequivocal:
“Overall, lighter options – which can include lower sugar or low or no alcohol content – continue to be a popular choice among customers,” The official news release states. “Products with no alcohol saw growth of 73% over the last year and 189% growth since 2022.
“This year’s product trends could be described as Ontarians seeking products that were unique, lighter and smaller in size,” said Abhay Garg, LCBO’s Vice President, Merchandising. “We watch trends closely and aim to curate an assortment that provides perfect choices for everyone”
The details…
… Show that Gen Z drinkers are leading the trend to less- or zero-alcohol recreational beverages. Their motivations, according to recent surveys, are rooted in enjoying an alcohol-inspired lifestyle, while consuming less actual alcohol. This suggests that the younger set – Millennials and later gen-erations – are continuing to exhibit an elevated and growing awareness of, and interest in health and well being issues.
In general…
… “We’re seeing customers’ wine preferences change, with a shift away from heavier styles towards fresher styles of wine, including lighter reds, low and dealcoholized wines, and refreshing whites such as Sauvignon Blanc and Pinot Grigi,” the release says.
The economy is also having it’s inevitable effects: “[V]alue priced reds and whites are attracting cus-tomers who are exploring [cheaper] options offering quality and affordability.”
Folks want more options., and greater opportunity to try a wider range of products. “A notable trend in both spirits and wines is the demand for smaller [container] formats which provides a great option for those who don’t want to commit to a full-size bottle.”
Ready-to-Drink products, such as pre-mixed cocktails and coolers, rose to prominence back before the COVID crisis. And they’re still enjoying robust growth, “[…] but cocktails (+17%) stand out as the fastest growing segment. Customers also took advantage of variety packs which allowed them to try different flavours from their favourite brands.”
My take
It certainly sounds as though the younger generations, which are also the growing demographic seg-ments, are driving a general downplaying of alcohol consumption across society.
That’s great news for out overburdened hospitals and the folks who have to figure out how to pay the costs associated with our healthcare system.
But these apparent improvements in the overall ‘drinking culture’ picture may be counter-balanced or even overshadowed by the revenue losses in both alcohol taxes and LCBO profits, which have tra-ditionally paid a significant portion of the province’s social services bills.
One thing is certain… No one is in a position to tell, at this point, what the eventual outcome of all these changes will be…
~ Maggie J.