Startups Fuel the Rise of Nonalcoholic Drinks
As demand grows for zero-proof options, startup brands are leading innovation in the nonalcoholic beverage market.
Summer is here, and while people are still reaching for a cold drink, more are choosing options without alcohol. Sales data shows this shift is more than a trend—it’s a lasting change, and startups are playing a big role in making it happen.
According to industry group IWSR, global sales of nonalcoholic beer rose 9% by volume last year. The group predicts that by 2025, these alcohol-free brews will become the second-largest beer category, surpassing ale.
This shift isn’t limited to beer. Grocery stores now stock alcohol-free wines, spirits, and mixers. Bars feature full mocktail menus. In places like Napa Valley, visitors can even book alcohol-free wine tasting experiences.
Startups Driving the Booze-Free Boom
The surge in nonalcoholic beverage sales has opened doors for startup companies. In the past few years, investors have poured hundreds of millions of dollars into startups making alcohol-free beer, wine, cocktails, and spirits.
One standout is Athletic Brewing, a Connecticut-based startup known for its craft-style nonalcoholic beers. Sold in stores, bars, and restaurants across the U.S., their offerings have become so popular that they reportedly outsell some regular beers at Whole Foods.
Backed by major investors like General Atlantic and Keurig Dr Pepper, Athletic Brewing has raised close to $250 million and was valued at around $800 million last year.
These startups are not just targeting people who avoid alcohol entirely. Many customers are casual drinkers who want the flavor and experience without the downsides—like hangovers, drowsiness, or the inability to drive.
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Quality and Experience Matter
Modern alcohol-free drinks aren’t bland substitutes. Today’s startup brands focus on flavor, quality, and premium ingredients. Their products are often priced similarly to traditional alcoholic beverages.
Lyre’s Spirit Co, another fast-growing startup, produces alcohol-free spirits and ready-to-drink mocktails. The company has raised at least $68 million and promotes its use of high-quality extracts, distillates, and natural ingredients to deliver a full-flavor experience. A bottle of its gin alternative sells for around $38—on par with alcoholic versions.
In the wine space, French Bloom, a Paris-based startup, offers sparkling wines made from dealcoholized chardonnay and pinot noir. Co-founded by a former Michelin Guide director and a model, the brand markets itself for celebrations and upscale events.
Why the Trend Is Sticking
Despite a cultural focus on party scenes—like chart-topping songs about getting tipsy—nonalcoholic drinks are finding their place. The appeal of a good drink often lies in the moment: a barbecue, a beach day, or dinner with friends. That experience doesn’t need alcohol to be enjoyable.
More people are also choosing zero-proof options so they can enjoy social events and still wake up clear-headed for work or other responsibilities.
Looking Ahead
Startups have transformed the nonalcoholic beverage market, making it more appealing and accessible than ever. With continued investment and growing consumer demand, the space is set for even more innovation in the years to come.