Non-Alcoholic Drinks Gain Ground in Canada
Non-alcoholic beverages are increasingly becoming an option for Canadians, according to a NIQ study.
The marketing agency issued a report in 2024 that found 75% of non-alcoholic beverage consumers in Canada also purchase alcohol products, and that the non-alcoholic options aren’t necessarily replacing alcohol, but they are often being integrated into a more balanced lifestyle.
The report also found that non-alcoholic beverages tend to appeal more to younger and middle-aged consumers, with a strong focus on health and wellness. These groups also tend to have higher household incomes, in excess of 70,000 Canadian dollars.
That data aligns with longer-term trends that suggest Millennials and Generation Z drink less than previous generations. A 2023 Statistics Canada report found two-thirds of Canadians ages 18-22 reported no alcohol consumption in the previous seven days, in comparison to between 51% and 57% of all other age groups.
The cutting back could be linked to updated guidelines that were issued by the Canadian Centre on Substance Use and Addiction. The 2023 guidelines stated that anything exceeding two standard drinks a week could raise the likelihood of health risks, including cancer. The research was funded by Health Canada, but the government agency has not endorsed the updated guidelines.
Between June 2023 and June 2024, NIQ found the non-alcoholic beverage market experienced significant growth. Total sales for the period amounted to 199 million Canadian dollars — an increase of 24% compared to the previous year.
In line with that data, Ontario’s largest alcohol seller, LCBO, reported that sales of non-alcohol drinks grew 73% over the last year, and it saw 189% growth since 2022.
Other NIQ findings include:
Non-alcoholic beer accounts for 76% of total sales, and beer alone experienced a 23.3% growth rate.
Non-alcoholic spirits' sales are up 67.7%.
Ready-to-drink mocktails saw 168% growth.
70% of on-premise consumers in each non-alcoholic segment intend to continue with their non-alcoholic choices beyond Dry January, suggesting it is a shift in consumer habits rather than a trend.