O-I Glass sees structural growth in non-alcoholic beverages

Packaging plays a central role in this context.
Picture: Roberto Sorin / Shutterstock.com

O-I Glass sees sustainable growth potential in the market for non-alcoholic and alcohol-reduced drinks. According to the glass packaging manufacturer, the trend around „Dry January“ is no longer a short-term New Year effect, but an expression of a structural change in consumer behaviour.

Marie-Laure Susset, Global Marketing Director Beer, Non-Alcoholic Beverages and Food at O-I Glass, describes „Dry January“ as part of a broader „sober-curious“ movement. What once began as a seasonal initiative has evolved into a year-round attitude. Almost half of US adults have stated that they want to drink less alcohol in 2025 - a significant increase compared to 2023.

The global non-alcoholic and low-alcohol beverage segment is expected to grow at an average annual rate of around eight per cent until 2032. This means that „No-Lo“ („No and Low Alcohol“) is no longer a niche market, but a dynamic competitive environment in which breweries, wine and spirits producers and suppliers of RTD (ready-to-drink) and functional beverages are becoming active.

Packaging as a strategic factor in the no-lo segment

According to O-I, it is not enough for brands to simply introduce alcohol-free variants. It is crucial to offer an „enhanced experience“ that conveys enjoyment, value and social occasions even without alcohol. Packaging plays a central role in this context.

Display

According to the company, glass packaging could fulfil several requirements at the same time. They are considered neutral in flavour and non-porous, do not interact with the contents and are associated with purity and safety by many consumers. In addition, glass conveys a high-quality user experience through its weight, feel and sound, which contributes to its positioning as a „grown-up“ beverage, particularly in the no-lo sector.

Sustainability aspects also played an important role. Glass can be recycled any number of times without losing quality. In a study conducted in 2022 with more than 4,000 consumers in 13 European countries, the majority said they preferred products made of glass to other materials.

Brand strategies between continuity and differentiation

For established beer, wine and spirits brands, glass enables design continuity when expanding existing portfolios with non-alcoholic variants, according to O-I. Shape, colour and labelling can build on familiar brand identities and thus create trust.

At the same time, glass also offers new brands in the non-alcoholic, functional or „adult soft drink“ product segment flexible design options. In a market environment that is strongly characterised by PET bottles and cans, glass can also contribute to differentiation.

O-I therefore sees the no-lo segment as a long-term strategic opportunity - not only in terms of product innovations, but also as an impetus for high-quality and sustainable packaging solutions.

Source: O-I