When most people think of non-alcoholic beverages, they think of drinks that are consumed by people who are not allowed to drink alcohol. This could be for health reasons, because they are underage, because of their religious belief, because they are pregnant, etc.
But the surprising fact is that there is a growing market of people who choose to not drink alcoholic beverages even when they could.
In this article, we will review the target market for non-alcoholic beverages by studying the reasons why people choose non-alcoholic beverages over alcoholic ones. We hope this article will help you better understand the psychology and the motivating factors that influence consumer choice in this market segment.
So, whether you are looking at bringing out a product or a service that caters to this market or you’re just interested in understanding and learning more about it, read on!
Types of non-alcoholic beverages
When most people think of non-alcoholic beverages they think of soft drinks, juices and other popular refreshments. While these are common ones there are many other beverages that can also be sold into the target market for non-alcoholic beverages.
These include (amongst others):
- Sports drinks
- Energy drinks
- Bottled water
- Flavored waters
- Milk
- Fruit juices
- Vegetable juices
- Coconut water
- Tea
- Coffee
- Hot chocolate
- Soymilk
- Kefir
- Non-alcoholic beer and wine
- Smoothies
Each of these types of non-alcoholic beverages targets different consumers.
Understanding the target market segments for these different types of non-alcoholic drinks is essential to selling into them successfully.
For example, sports drinks are most popular with active people who need a beverage to replenish their electrolytes and stay hydrated.
Energy drinks are most popular with those looking for an energy boost to stay alert or get stimulation.
Similarly, bottled water is attractive to people who are looking for a healthier beverage option or have safety concerns about tap water.
Likewise, flavored water is a great option for people who want something flavorful without the alcohol.
For those looking for a non-alcoholic party drink, non-alcoholic craft beer can be an attractive option.
Another growing market for a healthy non-alcoholic beverage is the market for green tea. Green tea, with its well-known health benefits like boosting the immune system, reducing the risk of heart disease, protecting against cancer, etc., is growing in popularity everywhere.
As you can see, different non-alcoholic beverages cater to different needs of different consumers.
Understanding these differences and understanding the perceived benefits that make people purchase one non-alcoholic beverage or another is key to serving this market.
Understanding the Target Market for Non-Alcoholic Beverages
The Target Market for Non-Alcoholic Beverages can be best understood by understanding the motivations and the reasons why some consumers choose non-alcoholic beverages over alcoholic beverages.
These are the top 10 reasons:
- Age
- Medical Reasons
- Religious Reasons
- Pregnancy
- Nursing
- Addiction
- Driving
- Dietary Restrictions
- Taste
- Personal Preference
Let’s look at each of these briefly.
1. Age
Children below a certain age are prohibited from buying or drinking alcohol. While the legal age for drinking changes from country to country, almost all countries impose a minimum age. This target market, therefore, is ideal for many non-alcoholic beverages.
2. Medical Reasons
People with heart issues, diabetes and other medical conditions may be advised by their doctors to limit their alcohol consumption. In some cases, they might need to avoid it altogether in order to maintain a healthy lifestyle.
Also, some people suffer from allergies to alcohol and so cannot touch it. Others might be taking medication that doesn’t mix well with alcohol.
In such cases, drinking non-alcoholic beverages can help people socialize without worrying about the adverse effects of drinking alcohol.
3. Religious Reasons
Certain religions prohibit the consumption of alcohol. The consumers in this target market are spread across geographies but they all shun alcohol for the exact same reason.
And so non-alcoholic beverages can be marketed to this geographically distributed group of people by using Intermarket Segmentation techniques.
In Intermarket Segmentation, we create a single target segment of consumers who are based in disparate markets or geographies by focusing on what is common between them.
4. Pregnancy
The CDC makes it clear that there is no safe amount of alcohol during pregnancy.
But certain non-alcoholic beverages can be a great choice for pregnant women who want to avoid drinking alcohol. Some of these beverages can also offer health benefits for both the mother and child.
5. Nursing
Nursing mothers also often choose non-alcoholic beverages as they are breastfeeding. This is to avoid the risk of alcohol entering their breastmilk which could harm their baby.
Nursing mothers, therefore, are a great target market for health-based non-alcoholic beverages as the benefits that go to the mother could also pass on to the nursing child.
6. Addiction
Those recovering from alcohol addiction are clearly in the target market for non-alcoholic beverages. Abstaining from alcohol can be difficult and having a tasty and healthy alternative like soft drinks and juices can help recovering alcoholics avoid a relapse.
7. Driving
Most people who are soon about to drive prefer a non-alcoholic drink to an alcoholic one. This is because drinking alcohol and then driving can lead to accidents, fines, and even imprisonment. Offering a range of great-tasting non-alcoholic drinks can help people make the responsible decision to not drink and drive.
8. Dietary Reasons/Restrictions
Dietary Restrictions like reducing the amount of sugar intake attract people to non-alcoholic drinks which are not just water. Having a choice of a delicious and healthy alternative can help people stick to their dietary restrictions while still enjoying a great beverage in social company.
9. Taste
Some people just don’t like the taste of alcohol. Offering a broad range of delicious non-alcoholic drinks can help these people enjoy their time out with friends and family without feeling the need to drink something with alcohol in it.
10. Personal Preference
And finally, some people are teetotallers and just don’t drink alcohol. Others decide to stop drinking alcohol altogether. This could be for any number of reasons, and it could be temporary or permanent.
A common reason is to “get healthy” and increasingly people are giving up alcohol and choosing fruit juices, smoothies and other non-alcoholic beverages instead.
This segment of the market can be targeted with non-alcoholic beverages that have a clear and distinct health angle.
They can also be attracted to the feeling of an alcoholic drink without having any alcohol in it. An example is a Mocktail.
People who “convert” to non-alcoholic drinks are often willing to pay more for them because of the sacrifice they have made. So, by segmenting the market based on price (ie the consumer’s willingness to pay), non-alcoholic drink manufacturers can sell certain health-based non-alcoholic beverages at premium prices.
Summary
- The target market for non-alcoholic beverages includes those individuals who either do not drink alcohol or choose to abstain from drinking alcohol.
- Children below a certain age are prohibited by law from drinking alcohol. Others are prohibited based on their religious beliefs.
- Some people prefer non-alcoholic beverages for medical, dietary or health reasons like recovery from addiction. Pregnant women and nursing mothers avoid alcohol to prevent harm to their child.
- And others choose to avoid alcoholic drinks for personal reasons, for instance, just before driving or because of a personal decision or simply because they don’t like the taste.
- The target market for non-alcoholic beverages is a growing one, and a large number of non-alcoholic drinks have been entering the market in recent years.
- So, anyone planning to enter this market, either as a manufacturer of a new non-alcoholic beverage or as a retailer, is best advised to be clear who their target market is, what drives them away from alcoholic drinks and which of the many non-alcoholic beverages satisfies their needs.