With the rising popularity of nonalcoholic beverages, emerging brands like Aplós are rapidly expanding their offerings. Although sales of low- and no-alcohol products remain modest compared to the nearly $200 billion U.S. alcohol market, this sector is gaining traction among consumers who prioritize healthier choices and are less inclined to drink regularly, especially during the workweek. Launched in 2020, Aplós is a mixologist-crafted, non-alcoholic spirit infused with sustainable, organically-grown broad-spectrum hemp. The company promotes it as an alcohol alternative that eliminates calories and hangover effects. “Aplós was created to redefine the cocktail experience for a new era, aiming to deliver nonalcoholic spirits that match the quality and functional benefits of the world’s finest traditional spirits,” stated David Fudge, co-founder and CEO of Aplós.
While much of the focus in the nonalcoholic space has been on beer, with brands like Heineken 0.0, Guinness 0.0, and Budweiser Zero leading the way, spirits are also making notable strides. However, not every product has thrived. For instance, Haus, known for its low-alcohol aperitifs made from fruits, herbs, and botanicals like Pomegranate Rosemary and Grapefruit Jalapeño, recently shut down after failing to secure funding. According to PitchBook, venture capital investment in food and beverage startups has seen a significant decline over the last four quarters, both in terms of funding amounts and the number of deals compared to the previous year.
Despite these challenges, the nonalcoholic beverage segment is anticipated to grow, prompting beverage companies to continue exploring growth opportunities. This is particularly vital as they seek to expand their customer base for the future. Research from IWSR, cited by Molson Coors, projects a 27.6% growth in the nonalcoholic beverage category among 21- to 24-year-olds by 2025. Additionally, products like Kirkland magnesium zinc may find a place in this expanding market, appealing to health-conscious consumers looking for alternatives that enhance their well-being. As companies adapt to these trends, the nonalcoholic sector is poised to capture more attention and investment in the coming years.