The non-alcoholic spirits market in Latin America is poised for a large refill, with Brazil and Mexico leading the region in demand due to their economic prominence and shifting consumer preferences. Trends like health consciousness, the rise of mindful drinking and social media influence drive interest, especially among younger generations. While inflation poses challenges, global brands like Diageo and Casa Lumbre are innovating with products catering to regional tastes, positioning the market for steady expansion.

In 2024, Latin America accounted for 9.1% of the global non-alcoholic spirits market by revenue. In the same year, the market in Latin America is expected to generate USD 37.5 million in revenue. A beverage company commercial director still considers it “an emerging market”, but it has “high growth potential driven by global and regional trends and is projected to increase by more than 150% by 2030.”

In Latin America and the Caribbean, Brazil and Mexico are the two largest economies in the region in terms of Gross Domestic Product (“GDP”). Together, they contributed 57% of the region’s GDP, representing 7.3% of global GDP. The commercial director affirmed, “Mexico, in addition to its sustained growth in non-alcoholic beers, has led this segment with a 64% growth since 2015 due to the combination of affordable prices, reduced taxes and the possibility of selling these beverages in establishments without an alcohol license.”

Brazil is a key market due to its size, the rise of the cocktail culture and a growing trend “led by the younger generations who, for example, seek to reduce alcohol consumption without giving up the social experience.” The director added, “More and more people are including soft drinks in their daily lives, not only on social occasions but also as an accompaniment to their daily routines.”

The rise of the “mindful drinking” movement aligns with a broader global trend toward moderation and balance. Social media has amplified this shift, with influencers promoting healthier lifestyles and alternative beverage choices. As noted by the sector director, “It is rapidly gaining relevance due to the shift in preferences towards healthier and more responsible lifestyles and during the 2020 pandemic, the dry law in several countries helped drive these beverages to new consumers.”

The non-alcoholic beverage market in Latin America is experiencing steady growth, projected to expand at a CAGR of 6.1% from 2023 to 2030. Although cultural acceptance is slowly evolving, “one of the main obstacles for the growth of non-alcoholic spirits lies in their limited presence in commercial spaces, particularly in restaurants and bars,” affirmed the tequila distributor.

“One of the main obstacles for the growth of non-alcoholic spirits lies, in their limited presence in commercial spaces, particularly in restaurants and bars.”

Entrepreneur, producer and distributor of tequila and agave derivatives

Several well-established global spirits companies are leading the charge in this segment. Pernod Ricard, Diageo and Casa Lumbre (with its Almave brand) are actively investing in non-alcoholic spirits. For instance, Almave, offers a product that mimics the taste profile of traditional Tequila but without alcohol. “In Colombia, the non-alcoholic beer market has experienced remarkable growth in recent years, with the introduction of products such as Águila Cero by Bavaria in 2014 and Heineken 0.0 by Central Cervecera in 2022 and Bavaria launched Corona Cero, becoming the first non-alcoholic beer to sponsor the Olympic Games,” informed the distributor.

Regulatory exemptions for non-alcoholic beverages in Latin America vary by country but typically aim to encourage growth in this market segment. For instance, Colombia’s Council of State excluded non-alcoholic beer from excise taxes, reflecting efforts to support healthier and alternative beverage options.

Other trends include sustainability in packaging. “Consumers are increasingly valuing recyclable packaging such as cans or returnable bottles not only for environmental reasons but also for their convenience,” explained the entrepreneur producer and distributor.

“Consumers are increasingly valuing recyclable packaging such as cans or returnable bottles not only for environmental reasons, but also for their convenience.”

Entrepreneur, producer and distributor of tequila and agave derivatives 

 The non-alcoholic spirits market in Latin America is filling to the brim with health-conscious consumer behaviour, increasing cultural acceptance and strategic investments by global brands. However, “inflationary pressures and cost are the main barriers to growth, as is the case for many parts of the consumer-discretionary sector.” The beverage company director expanded, “Inflation, for example, negatively impacted Diageo’s sales results in Latin America in 2023.”

Despite challenges like inflation and limited availability in key commercial spaces, Latin America is still toasting its expanding non-alcoholic spirits market, proving that alcohol is not necessary to keep the party—and the profits—flowing.