The Hot Trend for Americans Cutting Back on Alcohol, If Only a Little

Hold my beer.

Health oriented consumers are driving demand for a burgeoning category of drinks called “functional beverages” — drinks that producers tout as having health benefits because they have been infused with herbs, amino acids, CBD, and other bioactive compounds.

On the Wagon. Or is it Off the Wagon?

In addition to the Bud Light boycott last year, consumers — especially younger ones — have been cutting back on beer in general, and overall US beer production and imports dropped 5% in 2023, according to the Brewers Association. Consumers’ alcohol curtailing goes beyond brewskies as more than 40% of Americans said they’re trying to drink less this year, up from 34% in 2023, according to NCSolutions. For Gen Z and Millenials, those figures are higher at 61% and 49%, respectively.

This trend has given rise not only to non-alcoholic drinks that are getting better at mimicking their boozy counterparts, but drinks that are allegedly good for your body:

• Functional beverages include names like Wildwonder, Vita Coco, Odyssey, and more. The brands behind these products say their drinks can provide all sorts of support for a healthy body and mind. Whether that’s true remains to be seen, but consumers are sure spending like it’s true. 
• The global functional beverage market reached a value of roughly $155 billion last year and is expected to grow to $278 billion by 2033, according to Research and Markets. Functional beverage sales in the US topped $9 billion in the 52 weeks ending March 30, almost 10% of total beverage sales, CNBC reported. 

Americans sound like they are trying to be more health conscious, but 82% of people who buy non-alcoholic drinks and functional beverages still buy booze and beer. 

Are They Good for You? Though a brand like Poppi claims its soda is good for digestion, the jury is still out on whether it and other functional beverages actually provide much in the way of health benefits. Poppi is currently facing a lawsuit for false advertising regarding its gut health marketing. We could be on the verge of another scenario similar to how Red Bull’s slogan had to be changed slightly because it does not in fact give you wings. For now, we’ll be like a shy customer talking to a server: Fine with just water.