Non-Drinker Income Divide Shapes the No-ABV Opportunity

Low-income consumers who have stopped drinking alcohol are far less likely to reconsider than their high-income counterparts, according to Datassential’s recent Drinker Habits reports.

Sixty-seven percent of low-income non-drinkers say they’ll never drink again, compared with 41% of high-income non-drinkers, according to the High-Income and Low-Income Drinker Habits reports. The gap holds on the other end of the spectrum, too, with just 5% of low-income non-drinkers saying they plan to drink again in the future, versus 32% of high-income non-drinkers.

Both groups skew toward former drinkers rather than lifelong abstainers, with 75% of high-income non-drinkers and 67% of low-income non-drinkers having enjoyed alcohol in some capacity before stopping. The top reason for abstaining is consistent across both segments: not liking the taste or effects of alcohol, cited by 35% of high-income non-drinkers and 38% of low-income non-drinkers.

Price may be reinforcing that divide. Datassential’s Alcohol Usage and Shifts report found that among consumers drinking less overall, rising alcohol prices are the top cited reason, ahead of health concerns, with 67% of drinkers agreeing alcohol has gotten noticeably more expensive and 41% saying they skip or limit drinking because they can’t afford it.

Awareness of no-ABV alternatives also diverges sharply by income. Four in five high-income non-drinkers have heard of or tried no-ABV beverages, and just 16% have never heard of them. Among low-income non-drinkers, that unfamiliarity more than doubles, with 36% saying they’ve never heard of no-ABV options. 

When low-income non-drinkers do seek an alternative to water or soda, they gravitate toward tobacco, vapes or cannabis products well ahead of no-ABV beverages — tobacco or vaping was cited by 23% as very or extremely likely at home, compared with just 4-6% for no-ABV beer, wine or mixed drinks. High-income non-drinkers show a more even split, with no-ABV beer alternatives nearly matching tobacco or vape (42%) as a likely choice at home.

That momentum has so far tracked with the high-income segment, where no-ABV awareness is already high — but it does little for low-income non-drinkers, over a third of whom haven’t even heard of the category, and who default to tobacco or vaping instead. Closing that awareness gap, rather than just adding more mocktails to menus that high-income drinkers already frequent, may be the bigger lever for operators looking to reach this group.