Something is brewing…

But this time, we’re not talking about alcohol.

Moms, we’ve got good news.

According to LikeFolio trend data, consumer demand for alcohol-free beverages is on the rise.

Consumer demand for non-alcoholic drinks have increased by +18% QoQ and +5% YoY.

This is a continuation of a top consumer wellness trend we noted last summer.

The main driver: Younger generations are drinking less versus the generations that came before. 

Berenberg Research reported that Gen Z drinks 20% less than millennials per capita. And millennials already drink less than Gen Xers and Boomers did at their age. 

What are younger consumers turning to?

As more and more research on the effects of alcohol on the human body surfaces, we’re seeing a rise in functional health ingredients.

The top 2 functional wellness trends we see gaining traction are:

• Adaptogens
• Nootropics

These ingredients provide consumers with functional health benefits, like reduced stress, anxiety, and increased energy. On the other hand, most alcoholic products provide a buzz… with no health benefits attached.

You can see the rise in the total of people mentioning these functional ingredients in the chart below.

That’s impressive.

These functional ingredients are helping non-alcoholic beverage companies make waves.

Even more, we’re seeing a rise in one particular adaptogen in the LikeFolio universe.

Ashwagandha.

Consumer mentions of this ingredient are surging, up +249% YoY and +150% QoQ.

Ashwagandha is most commonly known for its anti-anxiety and stress-relieving properties.

Products featuring the sought-after nootropics and adaptogens are surging in popularity too.

Hopwter and Hiyo are two examples of alcohol replacements consumers are reaching for.

While there are signs that the culture around alcohol use is shifting, that doesn’t mean booze companies won’t adapt.

Take Budweiser, for example.

We featured BUD on the February MegaTrends report and its ability to lean into growing consumer trends, booze-free options included.

The key: companies who get ahead of key consumer macro behaviors are best positioned to thrive…even Budweiser Zero.