How to Understand the Rise of Alcohol Alternatives and Adaptogen Drinks

The beverage industry has undergone a significant transformation, driven by a growing emphasis on health, wellness and mindful consumption. I’ve written extensively on the growth of the non-alcoholic and low-alcoholic beverage space, including Dry January, and have seen firsthand how this shift reflects changing social norms.

Personally, while I don’t feel the need to eliminate alcohol altogether, I’ve found I feel better without it. I still enjoy a cocktail on special occasions or from a renowned mixologist, but I’ve grown to love some of the adaptogen-based and non-alcoholic beverages on the market even more than traditional drinks.

For those unfamiliar, adaptogens are substances that help the body manage stress, ease anxiety and promote relaxation, acting as your body’s stress management consultants. Nootropics, another common ingredient in non-alcoholic beverages, enhance memory, creativity and motivation, similar to caffeine. Together, these functional ingredients create drinks that feel as purposeful as they are enjoyable.

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The growth of this market is undeniable. A May 2024 report by IWSR Drinks Market Analysis revealed a 29% increase in the U.S. no-alcohol category compared to 2022, far outpacing the 7% growth of low-alcoholic beverages. The non-alcoholic beer market alone was valued at $22 billion in 2023 and is projected to grow to $40 billion by 2032, according to Global Market Insights. Athletic Brewing, valued at $800 million, exemplifies this success alongside other top sellers like Anheuser-Busch’s Corona Zero, Diageo’s Guinness 0.0 and Budweiser Zero.

Low-alcoholic beverages, defined as having an ABV between 0.05% and 1.12%, are also gaining traction as consumers seek healthier alternatives without going dry altogether. For example, Surely Wines recently launched a sister company, Arlow, a low-alcohol line with 6.5% ABV, offering “half the calories” and “full flavor.” Brandon Joldersma, CEO of both Arlow and Surely, explained that “Arlow is perfect for those who want to enjoy delicious wine without guilt or next-day consequences.”

When advising companies in this space, I emphasize shifting the narrative away from ABV levels. Instead, focus on the social experience — holding something delicious and calming in your hand while enjoying a moment. Drinks don’t need to contain alcohol to foster connection, and many bars and restaurants now feature robust mocktail menus.

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Beyond non-alcoholic and low-alcohol beverages, the market is also embracing innovative alternatives like THC and CBD-infused drinks. Nowadays, a THC beverage brand has seen explosive growth — 500% year-over-year — with revenues jumping from $750K in November 2023 to $3.8M in November 2024. They sold out their first run of canned cocktails (one million units), followed by a limited Holiday Cranberry flavor that sold out in a month. Founder Justin Tidwell explained to me, “If you’re going to drink water, just drink water. But if you want to have some fun, grab a THC drink — but always drink responsibly.”

Also THC-infused, Sober(ish) offers a calorie-free line of on-the-go “buzz without the booze” drops. Pamos and Brēs are two other THC drinks on the rise.

CBD-infused beverages, which are non-psychoactive, tout their calming benefits and relaxation. I have grown fond of a handful of these drinks including Aplós Calm, made with functional botanicals and adaptogens, Little Saints, using functional mushrooms like lion’s mane and reishi, and Kin Euphorics, infused with adaptogens and nootropics and co-founded by celebrity Bella Hadid.

Little Saints was on Shark Tank, and I applaud Founder Megan Klein for turning down three offers from Rashaun Williams and Kevin O’Leary that were close to her asking for investment but not what she desired. Sales for Little Saints grew nearly 600% from 2023-2024, and 2024 gross revenues approached $10M. Their St. Ember’s mezcal-inspired drink stands out among those seeking a smoky flavor profile.

Celebrity endorsements have helped many of these brands grow, including De Soi, co-founded by Katy Perry and led by Scout Brisson, a woman I admire for the creativity of her campaigns, her focus on event marketing and her strategic product launches.

For example, this past winter, De Soi partnered with Halfdays and Meier Skis to launch their limited edition St. Moritz Mule flavor. They ran a “This Way to the Après” giveaway that included a prize package consisting of a custom pair of De Soi x Meier skis, a stylish Halfdays ski suit, an Ikon pass, and 4-packs of St. Moritz Mule to sip throughout the season.

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Blake Lively is another celebrity who founded her own line of sparkling non-alcoholic cocktails with the goal that our drinks should be held to the same standard as the foods we eat — real, delicious and made from high-quality ingredients. Launched in the fall of 2021, Betty Buzz is now a top ten ready-to-drink non-alcoholic beverage at Total Wine & More and is nationally available in over 6,000 accounts. Prior to Betty Buzz, Lively launched Betty Booze, a line of sparkling gourmet low alcoholic cocktails founded on the same philosophy as Betty Buzz.

The rising availability and acceptance of non-alcoholic and low-alcohol beverages continue to reshape social norms around drinking. We see this shift at social events, work gatherings and offerings on bar and restaurant menus, and I encourage my friends and peers to feel empowered to choose alcohol-free options without social stigma. Apps like Sunnyside or Reframe are great accountability tools to help you be more mindful about drinking habits, while stores like The Zero Proof cater to those seeking a variety of alcohol-free options.

If you’re curious about mindful drinking or participating in Dry January, treat it as a learning experience. Ask yourself: What benefits do I feel from not drinking? How can I replace drinking-focused habits with new ones? What triggers my desire to drink? Many find they sleep better, feel less anxious and wake up more energized, often discovering that alcohol alternatives become a new staple in their routines.