The Real No/Lo Opportunity

Five Shifts Shaping the Category’s Future

For years, No/Lo has been viewed as a niché; an alternative for the designated drivers, dieters or those choosing total sobriety. But our latest research at Shoppercentric shows the category is entering a new phase. Consumers are shifting from seeing these drinks as just substitutes, towards seeing them as legitimate choices. No/Lo is now visible, available and increasingly socially accepted.

Across in-depth interviews, accompanied shopping trips and our WindowOn 2025 shopper data, one thing became clear: the No/Lo category has ‘landed’ but the rules for growth are changing fast. Below are the headlines, pulling out the most compelling insights.

1) The real competition isn’t alcohol, it’s soft drinks.

One in three UK adults now drink a No/Lo option at least once a month, and 96% of these drinkers regularly consume full-strength options. No/Lo isn’t a gateway into alcohol, nor is it the path out; instead, it lives alongside traditional Beer/Wine/Spirits (BWS) as a moderation tool. A way to stay in the category while dialling things down, not stepping away entirely.

No/Lo instead competes far more directly with soft drinks than alcohol. When consumers are switching out of alcohol, they typically revert to everyday choices like Coke, Sprite, lime and soda – not because it fulfils that moment, but because No/Lo options aren’t yet compelling enough.

Soft drinks feel familiar and safe. Consumers know what to expect and know they won’t be disappointed; the established taste expectations and better availability mean they often win when No/Lo options fall short. The real opportunity lies in recreating the emotional cues that makes alcohol feel special. Without this, people easily fall back into the safety net of soft drinks because No/Lo doesn’t feel worth it.

Too many currently view the category as a compromise as the options are too expensive, inconsistent on taste and too hard to find when drinking out of home. If No/Lo fails to win the occasion, consumers slip out of a BWS mindset and revert to these everyday choices instead.

The real challenge is keeping consumers in the BWS mindset. No/Lo needs to elevate the occasion by truly embodying the ritual of a pint, the elevation of a spritz, the comfort of a glass of wine.

2) Younger consumers are leading the charge, but not as obviously as people think

While every generation sees the category as growing, they each believe it is another group that is driving this growth. Gen Z assume older drinkers are trying to cut back, whilst Gen X place blame on the youngsters.

It’s the older generations that have a stronger relationship with alcohol in the first place; they need these replicas. They’re older so more likely to encounter health problems which might restrict drinking. They also tend to have more disposable income so they can afford to try things and risk them being wrong.

The younger ones are sober; they’re killing the drinking culture. Sober curious Gen Zs must be the ones buying this stuff. They’re not drinking anymore; they’re going on wellness walks and getting matcha.

All assumptions, all finger pointing - the data tells a more nuanced story.

No/Lo is currently more likely to be drunk by younger, more affluent men with families, likely seeking to ‘stay’ with their preferred drink type.

But what does this mean for brands and retailers? Does this suggest No/Lo is life-stage driven and not simply age-driven? Should strategies be tailored towards different generations?

3) Core drivers go beyond function: holistic health and great taste matter just as much.

Health benefits and lifestyle-led motivations sit at the core of No/Lo consumption. Functional needs (such as wanting to stay safe, maintain control and being the designated driver) still play an important role but they are not the whole story. Those who look at No/Lo through a functional lens often miss the wider appeal, it’s easy to overlook the benefits if you don’t need the functional replacement in the first place. For non-No/Lo drinkers, this functional mindset reinforces the traditional, and arguably outdated, belief that No/Lo is a compromise creating a category barrier.

Growth in the category is strongest among younger adults and families, reflecting this shift toward holistic health, moderation and the desire for ‘special’, more adult alternatives. This shift signals the movement from compromise to true selection, shoppers are being delighted in what they’re drinking and can see the benefit of engaging with the category beyond the functional use.

Yet, the category is still competing with soft drinks. To tip the balance from ‘acceptable substitute’ to ‘preferred option’, brands need to amplify the more holistic drivers. Especially flavour complexity, moderation benefits and emotional uplift. This distinctiveness versus soft drinks is crucial, brands need to showcase these ‘adult’ flavours and benefits.

Social inclusion also plays a key role. For many new or hesitant shoppers, No/Lo offers a social camouflage that you can’t get from soft drinks. This ability to blend in and feel confident is part of an elevated experience which can’t be achieved in the same way by drinking soft drinks.

4) Price, taste and availability are holding the category back.

Despite the category gaining popularity, these were reoccurring pain points that people struggle to get past. These barriers are holding people back from entering No/Lo in the first place, without trialling, many remain unconvinced.

Price – where is the value?

Put simply, people cannot understand why there is a minimal price differential between No/Lo and full-strength options. On the surface it feels counterintuitive: if something expensive (in this case, known to be heavily taxed) has been removed, why does the price remain almost the same? This disconnect creates cognitive dissonance, and for many this is enough to withhold trial.

Better by-the-glass or single-serve availability out of home could help to overcome this barrier. Presenting opportunities to try No/Lo without committing to a full bottle or multipack crate lowers the perceived risk and gives brands a greater chance of showcasing value through taste, experience and quality.

Taste Expectations – they don’t all taste the same...

There is a consensus that beers and ciders consistently deliver on taste. Whether this is due to genuine flavour performance or through the reassuring halo of an established and trusted brand is still to be truly untangled. Despite this debate, the perception of taste for beers and ciders is undeniably positive. However, wines lag significantly behind.

This lagging of wine, and in part aperitifs and spirits too, can negatively impact the overall category perception. Whether this be via direct experience, or through word of mouth, one bad wine can leave a terrible taste, exacerbating this hesitancy to trial.

Spirits and aperitifs show more potential, especially when enveloped by the ‘full’ experience. The theatre of garnishes, the inclusion of mixers and the elevated occasions associated with drinking spirits all combine to show promise for the category. However, simply pushing No/Lo spirits without this additional support will fall flat, particularly to those who are strictly functional in mindset.

What we know is that irrespective of the drink type, taste is non-negotiable. When taste is poor, people default to soft drinks – the tried, tested and safe options. When taste does deliver, No/Lo can become a meaningful part of an occasion, moving from a compromise to a valued choice.

Out of Home Availability – limited choices are limiting trial

Being in a pub, a restaurant, a bar all pose as prime opportunities for No/Lo to hit the spot. Despite the holistic ‘bettering yourself’ drivers, functionality still stands strong, but shoppers are being disappointed time and time again.

No/Lo menus, offer little beyond two lukewarm beer SKUs, and non-alcoholic pints on draught are all highly praised but hard to come by. Getting the basics right means No/Lo drinkers feel seen and have their needs met in environments which are all about occasion. Retaining the BWS mindset should be easy in these settings, but without the options, people have no choice but to revert to the everyday.

5) The category is evolving which excites but also confuses.

Mid-strength wines, functional beers, adaptogenic spirits are all part of a new wave of No/Lo options. The shift from simple functional replacements to experimental options excite consumers but is met with scepticism.

They ask:

“When would I drink this?”

“Does it replace alcohol, or soft drinks, or something else?”

“How does it boost my mood?”

The key question is whether the introduction of these products broadens the category or whether it blurs the lines? Currently, it feels like the evolution of these products isn’t bridging a gap and instead feels like they are caught between two categories.

The winners will be those who anchor to clear occasions, communicate simple and believable benefits, use familiar flavour cues and take care to not over-state wellness benefits at the expense of the functional grounding of No/Lo.

So What? What is the path forward for brands and retailers?

The main takeaway is clear, No/Lo won’t grow by trying to replace alcohol, it will grow by replacing soft drinks. To unlock that potential, brands and retailers must:

-        Speak emotionally, not just functionally

Own the moment, elevate the occasion, lean into ritual.

-        Justify the price

Explain the product, the craft behind it, ingredients, process, quality and most importantly why it’s worth paying for.

-        Elevate taste across the whole category, not just beers

Beer is leading, but don’t neglect the wine and spirits as these are impacting top level category perceptions.

-        Improve OOH visibility and range

Ensure No/Lo is more than just a few bottled beers; consumers want wines, spritzes and spirits. Broaden the ranges OOH to entice those functionally replacing – capture them whilst the occasion is top of mind.

Consumers are ready to embrace more mindful drinking, but they won’t work hard to do it. The category must make itself desirable and not be pigeonholed as a compromise, it will only achieve this through clarity and credibility. The brands and retailers that win will keep shoppers in a BWS mindset, keeping them in the moment and not feeling like they’ve stepped out of it.

Want to hear more about our work in the No/Lo category? Drop us a message on LinkedIn or to hello@shoppercentric.com and we’d love to set-up a short meeting to discuss or hear your needs.

Hannah Daniels

Research Manager, Shoppercentric

Assumptions cost money. Understanding behaviour makes it.