Angad Sethi (name changed on request), a 27-year-old MNC executive based in Gurugram, swears by his drinks and the social experiences that he partakes in every now and then. At the same time, he’s mindful of the negative health consequences of alcohol and doesn’t want to wake up feeling groggy every time he tipples. This holds true especially for Diwali and the festive season when the number of parties and social events grows manifold.
But, truth be told, he doesn’t worry much. He grabs a Heineken 0.0 or a Coolberg from the bar counter whenever he goes to a party. If he’s in the mood for something ‘stronger’, he chooses a Sober ‘whiskey’. Such non-alcoholic beverages provide him a healthier, guilt-free alternative to traditional liquor, and allow him to participate in social drinking without the unwanted side effects.
Sethi is not alone. A growing number of people, particularly young adults, are choosing to drink less alcohol, and even abstain, leading to a rise of the ‘no-lo’ (no alcohol, low alcohol) category in the alco-bev market.
And the figures speak for themselves. Across the top global markets, 61 million people were recruited into the ‘no-alcohol’ category between 2022 and 2024, and 38 million into ‘low-alcohol’, according to a study conducted by IWSR, a global authority on beverage alcohol data and intelligence.
“Consumers are drinking responsibly and occasionally. There’s a shift towards moderate and mindful drinking—low sugar, low calories, low ABV. It is ‘cooler’ to be seen at a morning marathon than a nightclub,” says Vansh Pahuja, founder of non-alcoholic spirit brand Sober.
Leading this ‘healthy’ alcohol trend is also an array of low-alcohol and no-alcohol beers, as consumers, particularly youngsters, drive a dramatic shift in the market. “Non-alcoholic beer allows people to enjoy the occasion, the flavour, and the sociability of beer, minus the alcohol, making it both a smart and social choice,” offers Vikram Bahl, chief marketing officer of United Breweries, India’s largest beermaker and producer of the Heineken 0.0 premium non-alcoholic beer.
“Heineken 0.0 is crafted with the same care and quality as the original Heineken. It delivers the unmistakable Heineken taste and refreshment, without the alcohol. The beverage gives consumers the freedom to enjoy a beer on more occasions— whether at lunch, after a workout, during workdays, or when choosing not to drink alcohol,” Bahl adds.
According to Vinod Giri, director general, Brewers Association of India, the alco-bev sector is seeing a rise in the ‘no-lo’ segment particularly due to the improvement in brewing process and quality of the product. “Today, it is very difficult to taste the difference between an alcoholic and a non-alcoholic beer. This provides a great alternative to anyone who wants to avoid alcohol but enjoy the taste of beer,” he explains.
The growth of ‘no-lo’ beverages is closely tied to changing consumer values. According to IWSR, 41% of global adult drinkers now regularly moderate their alcohol consumption. Millennials and Gen Z are leading this change, prioritising health, mindfulness, and social experiences that do not rely on alcohol. “In India, urban consumers are increasingly influenced by global trends, wellness culture, and premium hospitality experiences. The appeal for businesses is also strong—offering a curated ‘no-lo’ menu can increase dwell time and encourage higher spending per guest,” says Germain Araud, managing director of Monin India, makers of artisanal liqueurs, syrups and fruit purees.
Monin offers a comprehensive portfolio of zero-alcohol syrups, fruit mixes, and botanicals that help bartenders recreate the depth and balance of cocktails without alcohol.
According to Adarsh Gadvi, founder of Davana Vermouth Indica, whose fortified wines are naturally lower in alcohol, the no-lo alcohol movement will continue to grow. “Moderation, health consciousness, and shifting demographics are key drivers. Far from being a fad, this movement reflects a lasting change in consumer behaviour, with demand growing for balance, variety, and more mindful choices across categories,” he adds.
Agrees Pahuja of Sober. “Wellness and mindful consumption isn’t a fad—this is just the beginning. Consumers today really care about what goes in their bodies and they like to read every label, which isn’t just a trend, it’s the new normal. As this number grows and multiplies, Sober will keep growing with it,” offers Pahuja, adding that his business has seen a 10x jump in terms of revenue over the past one year.
Sober is currently working on creating its non-alcoholic wines in Italy. “The spirit alternatives are priced at Rs 1,999 each, whereas the wines are expected to launch at a price point of Rs 2,499,” Pahuja adds.
This is a long-term shift and not a passing trend, says Bahl of United Breweries. “ Around the world, consumers are redefining what responsible enjoyment means, driven by health consciousness and inclusivity. Global data shows that the low- and no-alcohol segment is among the fastest-growing categories in beverages, and this trend is mirrored in India, albeit from a smaller base,” he adds.
Heemanshu Ashar, global brand ambassador of John Distilleries, an Indian alco-bev company that produces the award-winning Paul John single malt whisky, says ‘no-lo’ is “a +7% CAGR engine globally through 2028, though in India it may take time to build as a category”. “However, the opportunity lies in consumption during off-days of alcohol (very prevalent in India), periods of lent and fasting, early weekday and day drinking and long medication or recuperating periods,” he adds.
Meanwhile, restaurants and cocktail bars are also rising to the occasion. Mumbai’s Scarlett House, for instance, offers a ‘zero-proof’ menu with seven non-alcoholic beverages priced between Rs 650 and Rs 700. “These drinks are chosen not just by teetotallers but by many guests looking to pace their evening or enjoy the ritual of a drink without the alcohol. Our ‘Breakfast in Bed’ is made with Sober whisky, cranberry, and espresso, and our ‘Melon Felon’ has Sober pink gin, watermelon, and ginger ale,” says Dhaval Udeshi, co-founder, Scarlett House.
According to Udeshi, people want to enjoy the ritual of drinking, but they’re not always looking for alcohol. “Wellness and inclusivity play a role, with guests seeking options that let them stay part of the occasion on their own terms. Add to that the rise of innovative non-alcoholic spirits and fresh and functional ingredients, ‘no-lo’ is no more a compromise, it’s a new way of drinking that’s both intentional and exciting,” he adds.
Similarly, Atelier V, a fine-dining restaurant and cocktail bar in Indore, Madhya Pradesh, offers drinks like ‘Sunset Colada’ in its non-alcoholic menu. “It blends pineapple, mango, passionfruit, and coconut into a tropical, indulgent serve. At the same time, the ‘Spicy Guava Chaat’ brings tangy, spicy notes inspired by Indian street flavours. Both have quickly become guest favourites, and their popularity reinforces that ‘no-lo’ drinks aren’t just a passing trend—they’re an essential part of how people want to enjoy hospitality today,” says Vedant Newatia, founder and head chef, Atelier V.
As someone with a deep passion for cocktails, Newatia says he might have been skeptical a few years ago. “But even during my time abroad, I could see the shift beginning—bars in Europe and the US were already giving zero-proof drinks equal respect. In India now, it makes complete sense. People are becoming more conscious of their consumption and want to be part of the social experience. Younger guests, especially, are curious about new flavours and see these drinks as exciting in their own right, not just substitutes,” adds Newatia.
Meanwhile, Giri of the Brewers Association of India expects non-alcoholic beer to cross a million cases in India next year. “However, unfortunately, and in my view, unfairly, non-alcoholic beer is now reclassified under GST, rising from 18% GST to the 40% ‘sin’ category along with soft drinks. We hope this classification does not affect the growth of the category,” he adds.
