Now a mainstay in most retailers, Jo Gilbert questions whether low & no actually means healthier…

The low & no category has been one of the most talked about in recent years, often framed through the idea that less alcohol automatically equals healthier choices. However, now the category is reaching a point of relative maturity, industry experts are beginning to question the ‘health halo’ around low & no – and, in some cases, ask whether it is misleading.

“The general feeling is that low & no-alcohol beverages are in some way healthier,” explains Ananda Roy, senior vice president of global thought leadership and strategic insights at Circana. “But in reality, they are ultra processed… they have two or three additional processes to remove the alcohol.”

Removing alcohol is not a neutral act. While most modern dealcoholisation methods retain many non-volatile compounds such as polyphenols, the process can still alter aroma, flavour and mouthfeel.

As Roy puts it, “you’ve got to put all that back in”, which means additional additives can be needed to rebuild taste and structure. The result is often a more complex formula than the original alcoholic product. In many cases, that complexity extends to sugar content too, with some low & no variants ending up being more calorific than their full-strength equivalents.

The perception of ‘better for you’, therefore, does not always chime with reality.

This disconnect becomes particularly poignant in the context of the rapid rise of GLP-1 weight-loss drugs such as Ozempic, Mounjaro and Wegovy. These drugs are already reshaping consumption patterns across categories – and alcohol is no exception. According to Circana data, 43% of people who are on these jabs quit the category altogether, while 50% of 21 to 35-year-olds drink less, stock up less and buy less alcohol overall.

The reasons for these shifts point in two directions, towards physiology and psychology. Alcohol can exacerbate the side effects of weight-loss drugs, such as nausea and bloating. Meanwhile, its sugar content runs counter to their goal of stabilising blood glucose levels. As a result, many consumers on GLP-1s are actively seeking alternatives in the low & no space, not necessarily because they are healthier, but because they offer a familiar format without the abv.

At the same time, a broader shift is underway that goes beyond switching out alcohol for low & no-abv drinks.

Roy points to the emergence of ‘adult beverages’ which tap into a wider wellness mindset via layered flavours and functional benefits. These are products like Lyre’s, which replicate classic spirits and aperitifs (though it should be noted that Lyre’s does not remove alcohol as part of its process, but instead builds its flavour profiles via a combination of natural extracts, essences, distillates and flavour compounds), and Dash Water – a sparkling water made using ‘wonky’ used fruit – which is being positioned as a sophisticated alternative to sugary soft drinks.

It seems, therefore, that this space is being fuelled from two directions. On one side are the drinkers moderating or exiting alcohol altogether thanks to health, lifestyle or the influence of pharmaceuticals. On the other are consumers who may never have been heavy alcohol users but are now looking for more interesting, less sugary alternatives to traditional softs.

There are obviously opportunities for brands and retailers here. There is almost an infinite space for innovation between alcohol and no alcohol as boundaries continue to blur.

As time goes by, this category is redefining what ‘drinking’ means altogether. But transparency around health will be increasingly necessary to make brands stand out – and ensure they don’t fall between the gaps.