By: The Ars X Machina (AXM) Media Team
As generational shifts in alcohol consumption reshape the beverage landscape, beverage brands are finding themselves at a crossroads. The growing popularity of non-alcoholic beverages, driven largely by Millennials and Gen Z, presents both challenges and opportunities. This poses a huge opportunity for non alcoholic brands as well as opportunities for alcoholic brands to expand their offerings and reach new audiences with an updated approach to media and advertising strategies that connect with these health-conscious, digitally-savvy consumers. Let’s take a look at alcohol consumption habits over time to understand how this trend has emerged.
Alcohol Consumption by Generation Over Time
Alcohol consumption patterns have varied significantly across different generations, influenced by cultural, economic, and social factors. Here’s a brief breakdown of how alcohol consumption trends have evolved over time and how these changes are impacting the non-alcoholic beer and drinks categories.
1. Baby Boomers (Born 1946-1964)
- Historical Trends: Baby Boomers grew up during a time when alcohol consumption was socially accepted and even encouraged in many social situations. Their drinking habits were largely shaped by the cultural norms of the 60s and 70s, with alcohol often being a central part of social gatherings.
- Current Trends: As Baby Boomers age, many are reducing their alcohol intake due to health concerns. This generation is becoming more health-conscious, which is leading to a decline in their alcohol consumption.
2. Generation X (Born 1965-1980)
- Historical Trends: Generation X grew up in a time of economic uncertainty and witnessed the rise of the fitness and wellness industry. This generation has a balanced approach to alcohol, enjoying it socially but also being aware of its potential health impacts.
- Current Trends: Many Gen Xers are now in their 40s and 50s and are experiencing the health effects of long-term alcohol consumption. As a result, there’s a growing interest in reducing alcohol intake, leading to increased curiosity about non-alcoholic alternatives.
3. Millennials (Born 1981-1996)
- Historical Trends: Millennials have been known for their “work hard, play hard” mentality, with alcohol consumption often tied to socializing and networking. However, they are also highly health-conscious and driven by wellness trends.
- Current Trends: Millennials are increasingly turning towards moderation or abstinence from alcohol, driven by health, wellness, and mental clarity goals. This generation is a significant driver of the growth in non-alcoholic beverages, as they seek to balance social enjoyment with health consciousness.
4. Generation Z (Born 1997-2012)
- Historical Trends: Gen Z is the most health-conscious generation to date. They are more likely to abstain from alcohol altogether, driven by concerns about mental health, physical wellness, and social media culture.
- Current Trends: This generation is fueling the rise of the “sober curious” movement, where people choose to reduce or eliminate alcohol from their lives. Gen Z’s preference for experiences over substances is significantly impacting the market for non-alcoholic beverages.
Understanding the New Consumer Mindset
The decline in alcohol consumption among younger generations is not merely a passing trend; it reflects a fundamental shift in consumer values. Millennials and Gen Z are more health-conscious than their predecessors, prioritizing mental and physical wellness in their lifestyle choices. According to a Nielsen survey, 66% of Millennials are actively reducing their alcohol intake, while 43% of Gen Z have reduced their consumption in the past year. These consumers are not just cutting back on alcohol—they are seeking alternatives that align with their desire for healthier, more mindful living.
This shift has led to the rapid growth of the non-alcoholic beverage market, with the global non-alcoholic beer market projected to reach $36 billion by 2030. For brands, this presents an opportunity to tap into a lucrative market, but doing so requires a nuanced approach to media and advertising.
Redefining Brand Messaging
Traditional alcohol marketing often revolves around themes of celebration, socialization, and indulgence. However, the rising popularity of non-alcoholic beverages calls for a different narrative. Brands need to craft messaging that resonates with the values of health, wellness, and mindfulness that are central to Millennials and Gen Z.
- Health and Wellness as Central Themes: Advertising for non-alcoholic beverages should emphasize their health benefits without sacrificing enjoyment. Campaigns could highlight the absence of hangovers, lower calorie counts, or the benefits of maintaining mental clarity while still partaking in social activities. Brands like Seedlip and Athletic Brewing are examples of those who have successfully marketed their products as sophisticated alternatives that allow consumers to enjoy the social aspects of drinking without the negative health impacts.
- Positioning Non-Alcoholic Beverages as Premium Choices: It’s important to avoid positioning non-alcoholic beverages merely as alternatives to alcoholic ones. Instead, they should be marketed as premium choices in their own right. This can be achieved by emphasizing high-quality ingredients, unique flavors, and the craftsmanship behind the products. Premium positioning not only attracts health-conscious consumers but also helps justify a higher price point, appealing to a demographic that values quality over quantity.
Leveraging Social Media and Influencer Marketing
Social media plays a critical role in shaping the preferences of Millennials and Gen Z, particularly when it comes to health and wellness. Brands must leverage these platforms to reach their target audience effectively.
- Influencer Partnerships: Collaborating with influencers who embody the values of health and mindfulness can be a powerful way to reach younger consumers. Influencers in the wellness space, particularly those who promote sober living or the “sober curious” movement, can lend credibility to non-alcoholic brands. These partnerships should focus on authentic storytelling, with influencers sharing their personal experiences with non-alcoholic beverages in a way that resonates with their followers.
- User-Generated Content (UGC): Encouraging user-generated content can also be highly effective. Brands can create campaigns that invite consumers to share their own experiences with non-alcoholic drinks, whether it’s enjoying a mocktail at a social event or incorporating a non-alcoholic beer into their post-workout routine. UGC not only provides social proof but also fosters a sense of community around the brand.
- Interactive Content and Experiences: Gen Z, in particular, values interactive and engaging content. Brands can create online experiences, such as virtual tastings or mixology classes, that allow consumers to engage with the product in a meaningful way. These experiences can be shared on social media, amplifying the brand’s reach and creating a buzz around non-alcoholic offerings.
Adapting Media Strategies for Targeted Reach
To effectively reach health-conscious consumers, brands also need to rethink their paid media strategies. This involves both selecting the right channels and crafting targeted messaging that speaks directly to the values of Millennials and Gen Z.
- Digital-First Approach: Given the online habits of younger generations, a digital-first approach is essential. Brands should focus on digital channels where their target audience spends most of their time, such as Instagram, TikTok, and YouTube. Programmatic advertising can be used to serve personalized ads based on consumers’ interests, behaviors, and past purchases, ensuring that the message is relevant and timely.
- Content Marketing: Content marketing is another crucial element. Brands can produce blogs, videos, and social media posts that explore topics related to health, wellness, and mindful drinking. Educational content, such as the benefits of non-alcoholic beverages or tips for maintaining a balanced lifestyle, can position the brand as a thought leader in the space.
- Experiential Marketing: Finally, experiential marketing—both online and offline—can help create memorable brand interactions. Pop-up events, branded experiences at fitness and wellness festivals, or partnerships with health-focused organizations can effectively introduce non-alcoholic products to a wider audience. These events can be amplified through social media and influencer partnerships, extending their reach beyond the immediate participants.
Sierra Nevada Brewing Company’s Non-Alcoholic Line
Quenching New Thirsts: How Sierra Nevada Embraced the Non-Alcoholic Wave
In recognizing the shift in consumer preferences, our client, Sierra Nevada Brewing Company (SNBC), responded to the growing non-alcoholic trend by expanding their portfolio beyond beer and launching Trail Pass, a non-alcoholic beer line.
Media Strategy and Tactics
Trail Pass was one of the products featured in Sierra Nevada’s newest marketing campaign “Runs in the Family” where AXM developed a targeted, customized media approach, leveraging both paid search and retail media.
Paid Search
- By targeting relevant non-alcoholic keywords, SNBC secured keyword coverage, enabling the brand to show up against relevant searches. Specific SNBC non-alc ad copy ensured the messaging was relevant to the users search query.
- By analyzing how consumers are searching for non-alcoholic beer, we identified the most common search query and updated ad copy messaging to align with the users’ query, resulting in significant quality score & ad relevance rank increases.
Retail Media:
- Utilizing a mix of retail media partners, SNBC was able to target key 1P shopper segments with personalized ads based on user behavior and preferences.
- In-store media encouraged purchase directly at the point of non-alcohlic decision-making.
Results
SNBC experienced a significant 124% increase in in-store Trail Pass sales, highlighting the success of our media strategy in aligning with client insights on the growing trend of non-alcoholic beverage consumers.
To sum it up
The non-alcoholic beverage trend is more than just a passing phase; it’s a significant shift in consumer behavior that presents substantial opportunities for brands. By understanding and embracing this trend, beverage brands can not only expand their market share but also align with the evolving preferences of today’s health-conscious consumers.
