The zero-proof spirits segment is booming. Non-alcohol spirits posted big growth numbers last year, far outpacing the growth of their traditional spirits counterparts, albeit from a small base. And industry estimates are bullish on continued growth for 2025 and beyond, with some predicting that non-alcohol spirits will top $1 billion in value in less than ten years. Zero-proof spirits had much larger gains in the off-premise than any traditional spirits segment for the 52 weeks ending December 28, 2024. Sales surged 108% by case volume and 86% by dollar sales for the year, according to NielsenIQ.

There are many factors contributing to the success of non-alcohol spirits. The trend toward healthy and mindful drinking is key, but the zero-proof segment’s continued focus on quality and innovation is also boosting the overall category, as is increased distribution and availability for the products in retail stores, restaurants, and bars.

“Awareness in the U.S. has grown considerably over the past few years,” says David Crooch, general manager of non-alcoholic beverages at Diageo North America, which now owns the Seedlip and Ritual Zero Proof brands. “The non-alcoholic spirits market is in a strong growth phase, both in the United States and globally. While the category is still relatively new, it’s evolving quickly. The consumer base is broad and growing.”

Seedlip’s portfolio highlights botanical-based products that don’t necessarily aim to mirror traditional spirits, though they’re intended for use in cocktails. The brand’s core products include Notas de Agave, made with prickly pear, lime, and agave, as well as the citrus-based Grove 42, the herbal Garden 108, and the aromatic Spice 94 (each $32 a 750-ml.). Conversely, Ritual Zero Proof offers a full range of products designed to replace traditional spirits in classic cocktails, including Tequila Alternative, Rum Alternative, Whiskey Alternative, Gin Alternative, and Aperitif Alternative (each $33).

“Both brands are performing well,” Crooch says, pointing to key markets like New York, southern California, and Chicago. He adds that both the on- and off-premise have embraced Seedlip and Ritual Zero Proof and points to Ritual’s new brand messaging— “don’t go dry, go zero-proof”—as a key example of how the brand is reaching new consumers. “It helps make the concept easy to grasp and encourages consumers to make the switch without giving up the experience of a great cocktail,” Crooch says. “On-premise presents the greatest opportunity, as bars and restaurants are essential discovery spaces and help drive trial, visibility, and cultural relevance. Off-premise is equally important, particularly e-commerce. With Diageo’s acquisition of Ritual in 2024, we’re now scaling distribution and access across all consumer touchpoints.”

Cocktail Culture

As drinking trends shift, zero-proof spirits marketers say mixed drinks are one of the main sectors driving growth for their products. Crooch says modern cocktail culture not only encourages trial, it also debunks the stigmas associated with the zero-proof space. Both Seedlip and Ritual Zero Proof are designed for mixability, and Diageo’s goal is to integrate them fully into a range of applications. “Our vision is clear: Everywhere there are alcoholic beverages sold there should also be non-alcohol choices,” Crooch says.

Along with Diageo, some other big-name spirits players have also entered the zero-proof arena. Pernod Ricard now counts labels like Beefeater 0.0 gin, Suze Tonic 0%, and Cinzano Spritz 0% as portfolio players, while Bacardi Ltd. houses Martini Floreale vermouth and Vibrante aperitif, as well as the Palette Bold and Roots non-alcohol spirits. Even so, many of today’s more popular zero-proof brands remain independently owned.

Lyre’s Spirit Co. launched in 2019 and today boasts a lengthy roster of spirits alternatives, ranging from Bourbon, Tequila, and both white and dark rums to orange and coffee liqueurs and Pink Gin ($38 a 700-ml.). In addition, the company has a full roster of RTD zero-proof canned cocktails, another parallel to traditional spirits category trends. Lyre’s RTDs include zero proof versions of the Margarita, Amalfi Spritz, Gin & Tonic, Dark N Spicy, and Malt & Cola, among others ($15 a 4-pack of 8.45-ounce cans). Retail trade marketing manager Kerry Szostak says awareness of the non-alcohol category has definitely grown over the last few years, adding that Lyre’s is now sold in more than 60 countries globally.

“People of all ages are buying zero-proof spirits,” Szostak says. “We’ve seen an uptick in Gen Z and Gen Alpha drinking less, as they’re seeking things to enjoy that don’t contain alcohol. We’ve also noticed that millennials who are looking to consume less alcohol purchase Lyre’s.” Szostak adds that the vast majority of people who buy non-alcohol spirits products also purchase full-proof spirits. Lyre’s refers to them as “substituters” who choose no- and low-alcohol products on certain occasions but don’t abstain fully.

For future growth, Lyre’s is looking at both the on- and off-premise. Szostak says bars and restaurants have traditionally been bigger movers for the brand, but the off-premise has shown increasing promise recently, especially with the rise in RTDs. This supports the idea that cocktail culture is driving non-alcohol spirits sales. “We expect to see non-alcoholic spirits continue to grow in the U.S. in the years to come,” Szostak says. “Strong growth across non-alcohol categories has continued throughout 2024, with RTDs expected to have the fastest growth rate through 2028.”

Other brands in the zero-proof sector are also betting big on RTDs. The De Soi brand of non-alcohol RTD cocktails launched in 2022 with support from singer Katy Perry, and CEO Scout Brisson says 2024 was a breakout year. Last year, De Soi saw 150% year-on-year wholesale growth and rose to become one of the top-selling SKUs in mass retailer Target’s non-alcohol section, according to Brisson. She says cities like Los Angeles, New York, San Francisco, and Austin, Texas are leaders for the brand, adding that suburban markets are coming on too.

The De Soi lineup is made with adaptogens like L-theanine, lion’s mane, and reishi mushroom, providing functional benefits as well as an alcohol-free cocktail experience. The brand’s portfolio includes Spritz Italiano and the Moscow Mule-inspired Golden Hour ($20 a 4-pack of 8-ounce cans). “Non-alcohol options aren’t here to replace alcohol, rather they’re expanding the drinking occasion,” Brisson says. “A great non-alcohol cocktail list helps consumers see these products as just another part of a thoughtful menu. It’s about inclusion not exclusion. We expect continued double-digit growth through 2026 and beyond.”

Mainstream Moves

Continuing to gain visibility in high-traffic drinking and beverage purchasing areas is key to sustaining growth for zero-proof spirits. And it’s a clear focus for brand marketers moving forward. Spiritless CMO Tom Santangelo says the landscape for no-alcohol spirits has completely changed over the last few years. “The biggest shift we’ve seen is mainstream retailers beginning to bet on the category,” Santangelo says. “We’re seeing major national retailers like Kroger, Walmart, and Whole Foods building no-alcohol assortments.”

The Spiritless portfolio includes the whiskeys Kentucky 74 Original and Spiced ($36 a 700-ml.), as well as the Tequila Jalisco 55 ($38), the premixed canned cocktails Old Fashioned and Margarita (each $16 a 4-pack of 250-ml. cans), and the bottled Espresso Martini ($30 a 700-ml.). Santangelo says New York and California continue to be top performers for the brand, but he adds that Colorado and North Carolina are also over-indexing. Restaurants and bars have led the charge in attracting new consumers, he adds.

“We see more interest in RTD canned cocktails off-premise, where consumers are prone to convenience, and the on-premise has been more accepting of glass bottles,” Santangelo says. “We’re starting to see an uptick in sectors like concert venues, suggesting the overall desire for non-alcohol products is expanding. On-premise continues to be the best way to experience the non-alcohol category for the first time.”

Consumer interest is varied, Santangelo adds, stretching from Boomers who are drinking less for medical reasons and Millennials who are drinking less for health and lifestyle reasons to Gen Z, who are drinking less alcohol in general. Drink Monday founder Chris Boyd agrees that the consumer base for zero-proof products is wide. The Drink Monday brand includes a gin ($40 a 750-ml.), mezcal ($42), whiskey ($45), and rum ($45). Boyd notes that the off-premise initially led sales, but he says that’s changed today as both retail and restaurants and bars are split roughly evenly.

“When we got into this back in 2019, we believed the consumer was going to be a narrow niche of go-getters who wanted something flavorful to drink during the week that didn’t leave them hungover the next morning,” Boyd says. “Now, we have regular customers in all 50 states, in places both rural and urban, which supports the idea that people in all walks of life are understanding the benefits of avoiding alcohol on occasion. The amazing part of this journey so far is seeing how far and wide this movement is going.”

The majority of customers who purchase non-alcohol spirits also purchase fully-proofed spirits, and that has also been a boon to business. When the zero-proof category first launched, the focus was on abstaining from alcohol altogether, but that’s no longer the case. “We’re seeing interest from consumers in bars, hotels, airlines, corporate events, and much more, it’s happening everywhere and it’s an amazing time to be a part of the movement,” says Three Spirit cofounder Tatiana Mercer. “Most Three Spirit customers are drinkers. People are still drinking alcohol, they’re just drinking less and are more selective of what they’re drinking.”

Three Spirit offers a portfolio of alcohol-free botanical elixirs designed to enhance mood through various adaptogens. The portfolio includes Livener, made with guayusa, guava leaf, and schisandra; Social, mixing lion’s mane, yerba mate, and damiana; and Nightcap, comprising ashwagandha, licorice root, and lemon balm (each $39 a 16.9-ounce bottle). “A change is definitely occurring,” Mercer says. “The ‘no and low’ categories are now on menus in some of the world’s best bars.”

Expanding Presence

Indeed, restaurants and bars across the country now offer mixology-forward non-alcohol cocktails. At The Boca Raton resort in Florida, on-site bars and restaurants list a variety of zero-proof drinks, from crafted cocktails to pre-mixed RTDs. Beverage director Johathan Feiler says his venues average two no-alcohol cocktails each, with recent selections including the What Hangover? ($10), made with Lyre’s Agave Blanco, orange and pineapple juices, and Fresca. “We find that guests are ordering non-alcohol cocktails in addition to traditional cocktails,” Feiler says. “It seems to be more of a balance than a replacement, and it creates a more well-rounded program.”

At The Ritz-Carlton Half Moon Bay in California, beverage director Mariano Padilla has recently introduced seasonal zero-proof cocktails at each of the resort’s restaurants, mirroring what he offers on the traditional cocktail menu. Resort-wide, across the property’s four venues, the menus list roughly 20 distinct zero-proof offerings. The Conservatory Bar menu features the Pacific Velvet ($16), mixing Lyre’s Italian Orange aperitivo, lime and grapefruit juices, and agave syrup.

“We offer a minimum of two zero-proof cocktails at each of our bars, a number that has steadily increased in recent years, particularly since 2022 when the no-alcohol movement became a critical focus for our luxury brand,” Padilla says. “There’s still much to explore and discover in the realm of no-alcohol offerings. Advancements in non-alcoholic spirits are bound to drive improvements in the alcohol beverage industry as well, allowing both sectors to evolve and progress together.”