Why low-abv spirits are reshaping global drinking culture?

For years, growth in beverage alcohol meant more occasions, more volume, more everything. Today, the story is different. Around the world, consumers are choosing to drink less, less often—and when they do drink, they’re more selective about what ends up in the glass. This isn’t a blip; it’s a structural shift that is reshaping categories, occasions, and the very idea of what “a drink” can be. 

Why low-abv matters? 

Moderation has moved from niche to mainstream. Nearly half of drinkers in major markets say they’re actively choosing to drink less—rising to two-thirds among people who already buy no/low options. That means fewer drinks per occasion, more intentional choices, and greater competition for the first and sometimes only serve of the night. Brands that understand this consumer logic win the right to be chosen. 

The global growth curve 

Low- and no-alcohol isn’t a sideshow. It’s where real momentum lives. Forecasts point to sustained expansion: no-alcohol is set to grow ~7% CAGR to 2028, outpacing total beverage alcohol as consumers shift toward lighter styles and flexible occasions. 

This is not just about abstinence or “Dry January.” As quality improves and portfolios mature, motivations now include taste, brand, and availability. Especially among younger legal-drinking-age consumers who are establishing habits with fewer legacy rules. 

What’s happening in the U.S.? 

The U.S. illustrates the trend’s nuance. According to IWSR No-alcohol spirits, still small in absolute volume, are the fastest-growing no-alcohol segment, compounding at 60%+ over the past five years. Seasonality matters: January volumes more than double the monthly average, with spring also strong. Coastal leaders like California and New York account for a third of volume, but smaller places punch above their weight. Rhode Island and Washington D.C. for example rank at the top for demand intensity, signaling targeted regional plays that can scale. 

Meanwhile, moderation strategies are evolving. Light-consumption cohorts now lead across key markets; temporary abstinence and “single-category occasions” (sticking to one type of drink) have grown sharply. Behaviors that reduce total drinks per occasion and raise the bar for quality. 

And about Gen Z: the narrative that they’re abandoning alcohol altogether is too simple. Participation among LDA Gen Z has rebounded toward market norms, but with different patterns, broader repertoires, high curiosity, more on-premise, and a more relaxed stance on sustained moderation. In other words, they’re drinking more thoughtfully, not necessarily less. 

Opportunities for bold scale-ups 

Design for the modern occasion. 

Low-abv thrives when it’s easy to understand and effortless to enjoy spritzable formats, lighter serves, and cocktail-friendly botanicals. As consumers adopt “single-category occasions,” your product must earn the first pour with clarity of purpose and great taste. 

Treat low-abv like a premium choice, not a compromise. 

Premium-and-above tiers are driving much of the value growth in no-alcohol beer, wine, and spirits. Younger buyers increasingly choose brands they already know and trust, and they reward products that deliver flavor and craft. Not just the absence of alcohol. 

Time your market pulses. 

Build “seasonal velocity stacks” campaigns and retail activations that peak in spring or summer, when category curiosity in most markets spikes. 

Innovate with integrity. 

From advanced de-alcoholisation to botanical stacks that emulate the social feel of alcohol, innovation is accelerating. Explore partnerships and claims carefully; consumers expect transparency and regulators are watching. 

Challenges to plan foravailability. 

If consumers can’t find it cold, they won’t buy it. Close gaps in key channels and ensure the right formats sit where low-commitment choices are made. 

Price vs. value. 

Production costs are often higher than buyers expect for “alcohol-free.” Solve with visible craft cues, elevated design, and occasions that justify the spend. 

Taste leadership. 

Frequent buyers are driven by better-tasting options. If your liquid isn’t best-in-class, nothing else matters. 

Macro headwinds. 

In mature markets, total beverage alcohol remains under pressure; competition at each occasion is tighter. The task is not to sell another drink. It’s to be the one drink consumers choose. 

The Russell & Stellar perspective 

We’re not in the business of postcard moments. We search beneath the surface, where moderation isn’t a threat but a map of new occasions, where lighter serves unlock new stories, and where 

low-abv becomes a premium choice with purpose. The opportunity is clear: fewer drinks, higher expectations, richer experiences. For brands ready to play at that level, momentum follows. 

Ready to explore? 

If you’re building a low-abv or no-alcohol range or repositioning an existing one. We can help you shape the right markets, formats, and narratives to win the first pour. Contact a Russell&Stellar partner for a free consultation and let’s build a plan that fits how people actually drink now.