The non-alcoholic beverage market is booming, driven by increasing sales and extensive product innovation. According to Grand View Research, the global market is estimated to be worth $1.46 trillion, with an impressive CAGR of 6% over the next five years.
Despite this growth, debates persist about the quality of these drinks. Critics argue that non-alcoholic beverages often fail to meet expectations on flavor. Yet, paradoxically, this difference in taste may hold the key to their continued success.
Taste Debate: An Obstacle or Opportunity?
While non-alcoholic beverages have made significant progress, skepticism remains. Andy Crouch from All About Beer bluntly states, “Most non-alcoholic beer isn’t good.” Traditionalists in the beer industry echo this sentiment, and similar criticisms are directed at the rising number of non-alcoholic spirit alternatives.
However, despite these critiques, non-alcoholic beverages are growing in popularity, even as their alcoholic counterparts struggle to maintain sales.
Donna Eastlake from Food Navigator notes, “In short, taste is not the top priority.” Brian Rosen, founder of InvestBev, adds, “Consumers in this category are often motivated by health and wellness benefits, which can outweigh minor differences in taste. Many are willing to accept a slightly different flavor profile if the beverage aligns with their lifestyle goals.”
A Different Take on Taste
Having spent 20 years studying how consumers emotionally respond to taste, I see things differently. While Eastlake is correct that taste may not always be the top priority, dismissing it entirely misses the mark. Taste remains integral—but not in the way we traditionally think.
Rosen’s observation—that consumers tolerate a different taste if it aligns with their goals—comes closer to the truth but still falls short. Consumers are not just tolerating non-alcoholic beverages; many are actively increasing their consumption of these products because they enjoy them.
Here’s the critical insight: a “different taste” is not necessarily an inferior taste.
How Consumers Learn to Love Non-Alcoholic Beverages
Consumers choose non-alcoholic beverages for various reasons—health, wellness, or simply the desire to avoid alcohol on certain occasions. Initially, these drinks may taste unfamiliar or even less appealing compared to their alcoholic counterparts. But over time, something fascinating happens.
The difference in taste starts to symbolize the benefits the consumer seeks: better health, improved sleep, fewer calories, or the ability to stay sharp. The brain makes an emotional connection between the unique taste and these positive outcomes. Eventually, consumers may come to prefer the non-alcoholic version because it aligns with their lifestyle and aspirations.
Consider the example of Coca-Cola and Coke Zero. Die-hard Coke fans often claim the sugar-free versions don’t measure up. But for a significant segment of consumers, Coke Zero’s lighter taste now feels superior. Why? Because the original’s richer, sweeter flavor has become associated with excessive sugar intake, while the alternative aligns with their health goals.
Similarly, think about reducing sugar in tea or coffee. Initially, the less-sweetened version may seem unpalatable, but over time, your palate adjusts. The sugary version that once seemed so appealing now feels cloying.
Moving Beyond Mimicry
This phenomenon suggests that striving to replicate alcoholic beverages exactly may not be the best approach. Instead of trying to close the taste gap completely, developers could focus on engineering the taste difference to have positive meaning for consumers.
Imagine designing a beverage where the subtle differences in flavor reinforce the idea that it’s healthier, lower in calories, and will leave you feeling better tomorrow. This approach shifts the focus from imitation to innovation—crafting experiences that confirm the consumer’s choice and reassure them they’ve made a good decision.
The Role of Emotion in Taste
To succeed in this space, we must move beyond the rational, measurable aspects of taste and delve into the emotional needs of consumers. Non-alcoholic beverages thrive not because they taste the same as alcoholic ones but because they fulfill emotional and sensory expectations that align with the consumer’s goals.
Functional beverages—those targeting specific health benefits—are already leading the way. These drinks don’t mimic alcohol but instead create unique taste profiles that enhance their health claims. The most successful products prompt consumers to feel that their choices are not only beneficial but enjoyable.
Creating Truth in Consumption
When a consumer chooses a product for a specific reason, the consumption experience must reinforce that decision. There needs to be an aspect of the taste, aroma, or texture that confirms their belief that the product delivers the benefits they seek. This isn’t just a rational acknowledgment—it’s a deeply emotional experience.
Non-alcoholic beverages will succeed not by mimicking the exact taste of their alcoholic counterparts but by being perceived as better suited to the consumer’s needs and aspirations.
A New Era of Beverage Development
The non-alcoholic beverage market offers a unique opportunity to redefine taste through emotional connections. By focusing on why consumers are choosing these products and engineering experiences that validate their choices, we can create a new category of beverages that aren’t just alternatives but preferences.
The future of this market lies not in imitation but in innovation—designing products that inspire loyalty, resonate emotionally, and leave consumers feeling satisfied, confident, and empowered.
Order my book “The Shape of Taste” here:
Chris Lukehurst is a Consumer Psychologist and a Director at The Marketing Clinic:
Providing Clarity on the Psychological relationships between consumers and brands
