According to a recent IWSR Strategic Study, the global market for no- and low-alcohol beverages grew from US$7.8 billion in 2018 to US$10 billion in 2021, and this category recorded more than 6% growth in volume in 2021, with a higher growth of 8% or more forecast for the period 2022-2025.
Meanwhile, separate research from NielsenIQ highlighted that this market in the US alone was valued at close to US$3.1 billion in 2021.
In Singapore, the rising appetite for zero or low-alcoholic drinks have resulted in the introduction of many new products into the market. Matthew Fergusson-Stewart, Managing Director of Spun Spirits, a Singapore-based bar and spirit consulting and distribution firm said, “People go out for food and drinks in Singapore. It’s in the country’s DNA. They want to have a good time. Alcohol consumption in Singapore will likely remain an on-trade and social affair. That said, the rise of the no- and low- alcohol category may be a boon to the F&B industry. It presents greater opportunities for socialisation between people who drink and those who don’t.”
One rising trend is Saicho, a new single origin sparkling tea brand popular in Singapore and has now made its way into prestigious hotels, bars and restaurants in the UK and Hong Kong. Its pioneering champagne-like teas are dubbed to promote as much nuance, flavour and provenance as premium wines.
Matthew added, “More people are also willing to pay top dollar for these no- and low-alcoholic beverages in a social setting and be a part of the conversation. We have seen increasing interest in Empirical Spirits canned cocktails. This is a trend that appears to be here to stay for quite some time; it’s not just the latest gimmick that will pass in a year or two.”
As the no- and low-alcohol category gains traction, the next move by producers and distributors are to ensure these drinks are more readily available at on-trade premises such as bars and restaurants in Singapore.
