Youth are driving a shift away from alcohol: In the US, only 62% of 18–24-year-olds drink alcohol (vs. 72% two decades ago), and 39% of young adults in the UK abstain entirely — reflecting a widespread cultural shift toward sobriety among younger generations across developed markets.

Global alcohol market growth is slowing: Beverage alcohol volume is projected to grow just 0.5% globally — driven mainly by older consumers and developing markets. Youth disengagement is limiting growth in mature economies.

Multiple social and cultural factors are driving reduced alcohol use, including health consciousness, stronger social norms around self-control, cultural diversity, and the influence of social media, which amplifies reputational risk.

Young consumers are not just switching beverages — they’re redefining occasions: Rather than replacing alcohol at bars and clubs, they are embracing home-based, relaxed social settings (e.g., streaming nights, dinner parties, gaming).

Non-alcoholic drinks remain a small share of the total market: In the UK, no/low-alcohol options account for just 3% of alcohol sales — far from markets like Germany (16%) or Spain (11%). High growth is needed to reach meaningful scale by 2030.

Time spent at home is structurally higher than pre-pandemic levels: The average American spends over 2 hours more at home daily than in 2003, and digital socialising remains elevated in 2024 across most major markets.

Young consumers seek beverages that support relaxation at home — not energy or alcohol-fueled highs. They want drinks that are calming, social, and fit new home-based routines.

Emerging brands like Trip and Recess are leading the way, offering CBD- and adaptogen-infused beverages that position themselves as alternatives to alcohol, tailored to stress relief, mindfulness, and chill-at-home occasions.

A new white space is emerging in the beverage market: functional, mood-enhancing, non-alcoholic drinks for the “relax and unwind” occasion — a need historically underserved by traditional beverage categories.

To win in this space, brands must:

• Understand key drivers like wellness, stress management, and lifestyle alignment.

• Quantify category potential, including consumer adoption and market value.

• Tailor strategies to regional dynamics, identifying markets where sobriety and relaxation align most strongly.