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Americans are drinking less. Here's what's filling their glasses instead. The nonalcoholic beverage industry is expected to reach $5 billion in the next few years. Here’s why many are cutting back on alcohol. The nonalcoholic beverage industry is expected to reach $5 billion in the next few years. Here’s why many are cutting back on alcohol. The nonalcoholic beverage industry is expected to reach $5 billion in the next few years. Here’s why many are cutting back on alcohol. The Shirley Temple walked so the zero-proof margarita could run. Mocktails have been on menus for decades, but the nonalcoholic drink category has moved far beyond grenadine, soda and a maraschino cherry. Today, it’s grown into a multi-billion dollar market. Consumers can find nonalcoholic beer and wine, zero-proof spirits, and canned cocktails designed to mimic the taste, look and ritual of drinking — without the alcohol. The shift comes as Americans are drinking less than they have in decades. Gallup’s 2025 Consumption Habits poll found U.S. adults are consuming less alcohol than at any point in the last 90 years. Health concerns appear to be playing a role. Gallup’s poll also found 53% of Americans say having one or two alcoholic drinks per day is bad for a person’s health. The World Health Organization has stated that no level of alcohol consumption is completely risk-free when it comes to health outcomes. "We know that people are drinking less in general, Gen Z in particular, but all ages are pulling back on drinking for all sorts of reasons," said Abigail Cuffey, executive editor of Women's Health and a contributor to "The Mocktail Playbook," a guide to building an alcohol-free home bar featuring dozens of bartender-crafted recipes. "Some of it is health-related, some of it is energy, mood, sleep — just seeing what life is like when they drink a little bit less." The trend is becoming increasingly visible at bars and restaurants. The National Consumer Unit visited The Penrose on Manhattan’s Upper East Side, where customers can order traditional cocktails alongside a dedicated zero-proof menu featuring options like alcohol-free spicy margaritas and boozeless bellinis. "I'd say post-pandemic is when it really ramped up, where we wanted to have a broader spectrum of what we offer," said Emily McLoughlin, the bar's general manager. Many nonalcoholic options are served in distinct glassware, giving bartenders and servers a way to quickly identify which beverages contain alcohol and which do not during a crowded shift. On busy Saturday nights, McLoughlin estimates roughly a quarter of customers are drinking a nonalcoholic beer. She believes the demand reflects a broader shift in what customers expect from a night out. People who aren't drinking alcohol still want a beverage that feels intentional, and not like an afterthought. "You get to have a cute glass, and you get all the garnishes, you get all the fun things without just having a club soda," McLoughlin said. As nonalcoholic beverages become more popular, experts say consumers should understand that "nonalcoholic" does not always mean alcohol-free. Under U.S. regulations, products can generally be labeled nonalcoholic if they contain less than 0.5% alcohol by volume. Some fermented beverages, including certain nonalcoholic beers and kombuchas, may naturally contain trace amounts of alcohol. For most consumers, those trace amounts are unlikely to be significant. But for people who need or choose to avoid alcohol completely, the distinction matters. The Centers for Disease Control and Prevention and the American College of Obstetricians and Gynecologists both advise that no amount of alcohol has been proven safe during pregnancy. People in recovery from alcohol use disorder may also wish to avoid products containing any alcohol, even in small amounts. That’s why Cuffey recommends consumers look closely at product labels. "Whether it’s spirits or beer, you want to look on the label for zero alcohol or 0.0% ABV," she said. "That will tell you there is nothing in it." Stay Connected With the National Consumer Unit Get clear, actionable consumer reporting delivered across platforms. Follow National Consumer Correspondent Allie Jasinski for real-time updates on Instagram, TikTok and YouTube. Have a question you’d like us to investigate? Email us at askallie@hearst.com Subscribe to our twice-weekly consumer newsletter for in-depth explanations and practical guidance.