The Rise of the Mocktail

Over the past decade, sales of soda drinks and alcoholic beverages have declined while sales of non-alcoholic beverages have increased.  This could be attributed to various governments placing taxes on sugary drinks to discourage consumption.  As a result, the beverage market is experiencing innovation and change favoring non-alcoholic alternatives. 


One alternative is functional waters, the market for which many expect to reach $18.24 billion by 2025.  Functional waters are still or sparkling, herb-infused waters that include common additives such as vitamins, acids, fruits, and vegetables.  The shift is supported by the growing attention of the public (mostly the working class and millennial populations) to products infused with healthy and weight loss-friendly ingredients.  However, fluctuations in cost and increasing customer bargaining power have caused some problems with consumer popularity.  


The organic beverages market is also rising as brands are crafting organic drinks to help customers address specific wellness goals.  Awareness of health benefits associated with organic products and growing demand for sugar-free caffeine-free beverages is creating interest in the organic beverages market, which is anticipated to reach $32.78 billion by 2027.  Health-conscious consumers looking for a caffeine-free energy boost are choosing herbal teas as well.  The revamping of the cold tea industry through cold brews, nitro offernings, and plant-based milk blends and the increasing awareness of healthy lifestyle habits by the public are driving the growth of the tea industry. 


Drivers such as preference for low- and no-alcohol content drinks and awareness of the effects of excessive alcohol consumption have led to some brands offering ready-to-drink (RTD) alcoholic beverages that feature new and interesting flavors including apple, tropical fruits, and berries.  The wide availability and range of flavors has led to many consumers trying RTD alcoholic beverages instead of regular alcohol.  The lean towards non-alcoholic alternatives has also led to the growth of the mocktail (or alcohol-free mixed drinks).  A mocktail allows those who are less likely to drink alcohol regularly to still partake in the bar scene and enjoy the luxurious, complex flavors found in mixed drinks. 


With new beverage trends currently on the rise, it’s best for brands to expand into new markets by pursuing opportunities that resonate with the customers.

The Rise of the Mocktail