As younger consumers grow increasingly comfortable with abstinence, and the non-alcoholic sector grows, brands and retailers should reconsider how to approach Dry January.

The second-largest digital advertiser among industries will post strong ad spending growth in 2024, but deceleration is on the horizon, and its various subcategories have starkly different outlooks.

For the second year in a row, the US CPG industry will increase its digital ad spending more slowly than most other industries. However, a major growth rebound is in the cards for 2024.

This year, we forecast US off-premise alcohol retail sales (i.e., alcohol purchased for at-home consumption) will grow by a modest 3.5% to $178.20 billion. This growth will accelerate slightly through 2027, driven by three areas of opportunity within the industry: ecommerce, customers willing to splurge on premium beverages, and at-home consumption trends.

The nonalcoholic beverage market has burst open, and many nonalcoholic spirits companies are pushing marketing beyond sobriety to overall health. “We’re not trying to stop anyone from drinking,” said Hebe Mills, marketing manager at Pentire Drinks. Instead, Mills says the alcohol-free brand is “making sure [our customers have] a really good-tasting alternative.”