By Jamie Martin
The U.S. beverage landscape is undergoing a transformation as consumers drink less alcohol and explore healthier, more affordable alternatives. The decline in alcohol use is particularly evident among younger generations, who are prioritizing wellness and moderation.
CoBank’s Knowledge Exchange report highlights that nonalcoholic beverages have become a key growth driver in the market. Both established and emerging brands are investing heavily in developing new products with distinct flavors and experiences.
In 2024, global wine consumption dropped to its lowest level in over six decades, and U.S. wine sales fell by 5.8%. Meanwhile, nonalcoholic beverages gained ground. Beer alternatives saw a 22% rise in purchases, and nonalcoholic wines reported a 41% increase in sales value.
Nearly 50% of Americans plan to drink less alcohol in 2025, with Gen Z and millennials leading the movement. The “sober-curious” trend has surged 44% in the past two years, showing how wellness, not abstinence, drives consumer choice.
As alcohol sales shrink, cannabis beverages are becoming a popular alternative. The U.S. market is projected to grow to $2.8 billion by 2028, driven by younger consumers seeking natural, lower-calorie options. Older adults are drawn by perceived relaxation and health benefits.
“The trend toward non-alcoholic beverages and their rapid growth in sales is prompting considerable innovation in the space,” said Billy Roberts, food and beverage economist with CoBank. “Beverage producers in the consumer-packaged goods space are introducing options with novel sensory experiences that can stand on their own, rather than simply mirroring alcohol-based counterparts.”
Despite pricing challenges, experts foresee rapid expansion supported by innovative product development. CoBank’s Billy Roberts notes that both nonalcoholic and cannabis-based drinks will continue to gain share, appealing to modern consumers’ lifestyle and wellness goals.
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Categories: National