Investors Lab

The future of socializing is zero-proof

Ancient Greeks mixed wine with water in this vessel.

Our ancestors tended to drink in regulated environments, with relatively weak spirits. This ancient Greek vessel for mixing water and wine depicts a scene from the alcohol-fueled creative gatherings known as symposia.

Zde/Wikimedia Commons

By Susanna Camp

It’s last call for the debate over “healthy” drinking levels. According to the World Health Organization and some public health agencies, no amount of drinking is safe. The news coincides with a global trend toward teetotaling. SN’s Sujata Gupta reports on the data on non-alcoholic social drinking, and what this says about our health.

🍷 History and social customs

In ancient societies such as Greece’s, alcohol served as a profound social lubricant, binding communities through shared, mildly altered states. But libations back then were much weaker than the wines and spirits in today’s liquor stores, and revelry was more tightly regulated. These days, people are bringing nonalcoholic beverages into the mix.

🤑 The $46 billion solution

The no- and low-alcohol global market is expected to surge from $25.7 billion in 2024 to an estimated $46.5 billion by 2034. That’s almost double, signifying not just a trend but a structural realignment. There’s also a focus on quality, driving out the old, watery nonalcoholic beers and replacing them with high-margin, complex zero-proof spirits and ready-to-drink mocktails.

🍹 The New Adult Beverage Shelf

The biggest opportunity lies in scaling brands that appeal to discerning tastes, such as these:

  • We have already seen the exit validation: Ritual Zero Proof, a top seller in zero-proof spirits, was acquired by industry giant Diageo for a reported $23 million in 2024.
  • Athletic Brewing Company dominates the nonalcoholic craft beer space, with seemingly ubiquitous distribution. The company is valued at $800 million, after a 2024 funding round led by private equity giant General Atlantic.
  • Lyre’s is an Australian up-and-comer with global distribution. They’ve raised over $68 million in venture funding for their range of spirits and pre-mixed mocktails.

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