Non-Alcohol Spirits Gaining Traction In The U.S.
August 15, 2025Non-alcohol spirits posted big growth numbers last year, and they’re continuing to expand rapidly in 2025, with some predicting the category will top $1 billion in value in less than 10 years. Those projections are backed up by strong gains in the year-to-date through August 2, with non-alcohol spirits volume more than doubling and value up by 67% in NielsenIQ channels.
“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 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 includes botanical-based products that don’t necessarily aim to mirror traditional spirits, such as 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 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. “On-premise presents the greatest opportunity, as bars and restaurants are essential discovery spaces and help drive trial, visibility, and cultural relevance,” he notes. “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.”
Among other big-name spirits players, Pernod Ricard now counts labels like Beefeater 0.0 gin, Suze Tonic 0%, and Cinzano Spritz 0% in its stable, while Bacardi Ltd houses Martini Floreale vermouth and Vibrante aperitif, as well as the Palette Bold and Roots non-alcohol spirits. Lucas Bols USA has bet on the category with brands like Pallini Limonzero ($25 a 750-ml.), Damrak Virgin 0.0 ($30), and the Fluère portfolio of non-alcohol spirits offerings ($35). Even so, many of today’s more popular zero-proof brands remain independently owned.
Lyre’s Spirit Co. has spirits alternatives ranging from Bourbon, Tequila, and both white and dark rums to orange and coffee liqueurs and Pink Gin ($38 a 700-ml.), as well as zero-proof canned cocktails. “We expect to see non-alcoholic spirits continue to grow in the U.S.,” says retail trade marketing manager Kerry Szostak, “with RTDs expected to have the fastest growth rate through 2028.” Szostak adds that the vast majority of people who buy non-alcohol spirits products also purchase full-proof spirits.
The De Soi brand of non-alcohol RTD cocktails launched in 2022 with support from singer Katy Perry. 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 CEO Scout 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 biggest shift we’ve seen is mainstream retailers beginning to bet on the category,” says Tom Santangelo, CMO of the Spiritless brand. “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 Tequila Jalisco 55 ($38), premixed canned cocktails Old Fashioned and Margarita (each $16 a 4-pack of 250-ml. cans), and a bottled Espresso Martini ($30 a 700-ml.). Santangelo says New York and California continue to be top performers, with Colorado and North Carolina also overindexing. Restaurants and bars have led the charge in attracting new consumers, he adds.
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