3 actions to take advantage of a booming alcohol-free spirits market
Non-alcoholic spirits are gradually entering the beverage market, given the growing preference of young consumers for non-alcoholic beverages. A major reason for this preference is the growing awareness of one’s health and the products that can benefit from it.
We have therefore rounded up certain titles which are big players in the non-alcoholic spirits market. One can consider investing in them to take advantage of the growing popularity of these drinks.
The alcohol-free spirits market promises solid growth
According to a report by Global Market Insights, the wine and non-alcoholic beer market is expected to grow by more than $ 30 billion by 2025, up from around $ 20 billion in 2018. The growth of this market is mainly due to improving the standard of living and improving the standard of living. growing awareness of the health benefits that non-alcoholic drinks bring to the table.
Factors behind the consumption of non-alcoholic spirits
Diving deeper into the world of alcohol-free spirits, one can see that the growing number of health-conscious consumers is not the only reason the demand for these products is increasing. Strict alcohol consumption regulations in many countries go a long way to boosting their demand.
For example, restrictions on alcohol consumption in Islamic countries like Iran, Egypt, and Libya have boosted demand for alcohol-free wine and beer. In fact, the Middle East accounts for almost a third of the sales of non-alcoholic beer in the world.
Moreover, given the inclination of the younger generations towards non-alcoholic beverages, countries with a younger clientele could support the development of the industry. For example, a majority of the Iranian population is under the age of 30, demonstrating high potential for growth in the non-alcoholic spirits market, according to the Global Market Insights report.
Going through specific segments of the non-alcoholic spirits market, it can be noted that the beer segment accounted for over 60% of the wine and non-alcoholic beer market share in 2018. Higher demand was mainly observed in Europe and North America, due to the health benefits of the drink.
In addition, the wine segment is expected to experience a compound annual growth rate of over 8% through 2025. More and more people are opting for non-alcoholic cocktails instead of infused alcoholic beverages, which is expected to increase the rate. consumption of drinks and therefore demand.
In addition, the shift in consumer preference towards flavored wine is also another major factor driving product sales in the field. Finally, greater availability of premium brands offering alcohol-free spirits by wine makers and the rapid expansion of the distribution network are also expected to drive the market.
3 shares to buy
We have therefore chosen three stocks that offer a wide range of spirits and other non-alcoholic drinks. All of these stocks carry a Zacks Rank # 1 (strong buy) or # 2 (buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
National Beverage Corp. FIZZ develops and produces a portfolio of carbonated waters, juices, energy drinks and soft drinks. National Beverage, which is part of the Zacks Beverages – Soft drinks business, has an expected profit growth rate of 4.3% for the next quarter. Zacks’ consensus estimate for the company’s current year earnings has shifted 35.6% north in the past 30 days. The stock carries a Zacks Rank # 1. National Beverage shares closed the July 16 trading session at $ 67.01.
Celsius Holdings, Inc. CELH is a developer and distributor of functional, calorie-burning fitness drinks. Celsius, which belongs to the Zacks Food – Miscellaneous industry, has an expected profit growth rate of over 100% for next year. The stock carries a Zacks Rank # 1. Celsius shares closed the July 16 trading session at $ 13.85.
Monster Beverage Corporation MNST is a developer and distributor of energy drinks and concentrates. Monster Beverage, which is part of the Zacks Beverage Industry – Non-Alcoholic Beverages, has an expected profit growth rate of 14.9% for next year. Zacks’ consensus estimate for the company’s current year earnings has shifted 0.5% north in the past 30 days. The stock carries a Zacks Rank # 2. Monster Beverage shares closed the July 16 trading session at $ 72.62.
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