The nonalcoholic beverage moment is getting infrastructure. UNFI is pointing retailers toward alcohol-free options as a holiday opportunity backed by its own sales data, while Walmart is building a dedicated “Mood & Mind” functional beverage set in more than 1,000 stores.
Wellness is expanding the occasion
Alcohol consumption among adults 18-34 declined from 59 percent in 2023 to 50 percent in 2025, according to Gallup, and millennials now represent the largest share of no-alcohol beverage consumers in the U.S., with the market projected to approach $5 billion by 2028, according to IWSR, which compiles beverage alcohol data and insights.
“Today’s consumers, particularly millennials and Gen Z, are taking a more mindful approach to alcohol consumption,” said Amie Bonner, UNFI UpNext supplier development manager. “Consumers are seeking products that allow them to participate fully in social occasions without feeling that they are sacrificing experience, flavor or inclusion.”
UNFI’s sales data shows demand concentrating in seasonal moments: alcohol-free beverage sales reached $23.4 million during the 2025 holiday period – up $6.9 million from the prior year – and momentum continued into January, when New Year wellness goals and Dry January participation pushed category sales to $23.8 million.
The category now stretches well beyond mocktails. UNFI’s portfolio spans zero-proof ready-to-drink cocktails (Recess); alcohol-free sparkling wines (Silver Swallow, a recent UpNext Pitch Slam finalist); agave-based alternatives with adaptogens and botanicals (Parch); alcohol-free spirits for home mixing (Abstinence); and beer-inspired options such as Hop Wtr, which combines sparkling water, hops and functional ingredients.
For retailers, the breadth creates occasion-based merchandising opportunities from Thanksgiving toasts through Dry January, said Alicia Mansury, UNFI natural category manager: “Consumers still want those experiences.”
Independent retailers are making the same bet at store level. Kristie Maurer, who opened Maurer’s Urban Market in Madison, Wisconsin, earlier this month, dedicated 12 feet of the new store to the category.
“We actually focused on NA, non-alcoholic; it is such a high category,” Maurer told The Shelby Report. “We actually ended up with 12 feet of non-alcoholic, beer, wine and spirits, to really highlight the changes in consumer shopping behavior.”
Walmart’s Mood & Mind set
Walmart, meanwhile, is giving functional relaxation beverages a dedicated home. The retailer is working with Recess, which pioneered the relaxation beverage space with magnesium- and adaptogen-infused sparkling waters, to build out the new Mood & Mind set.
“Just as we did with the modern soda category, Walmart is listening to what customers tell us they want and moving quickly to deliver for them,” said Brian Salmon, VP of beverage at Walmart U.S. “Customers are choosing beverages based on the moment, whether they’re looking for energy and focus or something that fits into relaxing and unwinding. Recess helped define relaxation beverages, so when we set out to create Mood & Mind, they were a must-have for the assortment.”
Mood support beverages are growing faster than other functional segments including gut health, protein support, energy and hydration, according to Spins data cited by Recess.
“When we launched Recess eight years ago, consumers understood the idea of a relaxation beverage before much of the industry did,” said Ben Witte, founder and co-CEO of Recess. “Walmart is seeing that opportunity in its own shopper data. Working together to give the category a dedicated place in the aisle is an exciting next step.”
Recess Mood singles and four-packs will anchor the set, including a new Pink Lemonade 12-ounce single. Launched in 2018, Recess sells in more than 15,000 retail doors including Walmart, Target, Costco, Sprouts, Albertsons and Kroger.
Related: FitVine Wine Launches Functional Non-Alcoholic Line