Only 54% of U.S. adults reported drinking alcohol in the past year, down from 62% in 2023—the lowest rate recorded in nearly 90 years. Fueled by wellness goals, this shift has opened the door for a new kind of innovation. The beverage industry is responding with a wave of low-ABV, functional, and non-alcoholic innovation that meets consumers wherever they are on the moderation spectrum.
Non-alcoholic beer, wine, and spirits sales surpassed $1 billion in 2025, and 92% of those buyers also purchase traditional alcohol products.
A few things are converging to drive this behavior:
Understanding this space requires more than tracking category growth. Research helps brands get beneath the surface of what’s driving choice:
Brands that can answer these questions with confidence, backed by real consumer insight, will be better positioned to launch with intention.
Winning brands will build for both ends of the spectrum: premium NA for alcohol-free occasions and functional low-ABV for mindful drinking moments.
Understanding where your consumer sits on that spectrum, and what “better for you” means to them specifically, is the strategic question that separates reactive innovation from category leadership.
Want more insight on how wellness trends are influencing beverage choices in 2026? Download MDRG’s full 2026 Wellness Beverage Trend report or contact MDRG today!
Gallup. (2025, August 13). U.S. drinking rate at new low as alcohol concerns surge. https://news.gallup.com/poll/693362/drinking-rate-new-low-alcohol-concerns-surge.aspx
NielsenIQ. (2026, January). 2025 beverage alcohol year in review. https://nielseniq.com/global/en/insights/analysis/2026/2025-beverage-alcohol-year-in-review/
Southey, F. (2025, November 26). Functional non-alcoholic drinks: Innovation, opportunity and growth. FoodNavigator. https://www.foodnavigator.com/Article/2025/11/26/functional-non-alcoholic-drinks-innovation-opportunity-and-growth/
Wirecutter. (2026, January 16). 14 best nonalcoholic drinks of 2025. The New York Times. https://www.nytimes.com/wirecutter/reviews/best-non-alcoholic-drinks/