For decades, traditional beers, wines and spirits have been the backbone of travel retail, airline menus and cruise offerings, but consumer preferences are shifting fast. Health-conscious travellers no longer settle for the status quo. They want options that align with their lifestyle without compromising on taste, experience, or indulgence.
The rise of ‘better-for-you’ alcohol is more than just a passing trend. It’s a structural change in the industry, driven by evolving attitudes across generations. As explored in previous articles published on the CSS website, Gen Z and Millennials are drinking less but drinking better. Older demographics are also rethinking their choices, opting for lighter, lower-calorie and functional alternatives that still deliver a premium experience.
This shift presents both a challenge and an opportunity. For travel retailers, airlines, and cruise operators, the ability to meet these demands will be critical to staying relevant and competitive.
What’s driving the change?
Health, wellness and moderation are at the forefront of consumer behaviour. According to a 2023 IWSR report, the no-and-low alcohol category grew by 7% in volume globally in 2022, with consumer demand continuing to rise across key markets. Travellers are not just looking for alcohol-free options; they’re seeking drinks with added benefits such as, low sugar, organic ingredients, adaptogens or lower ABV without losing depth of flavour. And it’s not just about health, it’s also about sustainability and smarter choices. The 'better for you' movement is redefining the drinks industry by offering options that align with modern consumers’ values. It’s about balance: enjoying indulgences while making smarter decisions.
Rethinking the beverage line-up
Historically, travel focused drinks have centred around familiarity. The big brand beer, the house wine, the signature cocktail. But today’s consumers want innovation.
1. Elevating beer choices
Standard lagers still dominate, but the demand for lighter and lower-calorie options is undeniable. Some airlines have introduced low-carb beers like Skinny Lager, which offers the same ABV as a classic beer but with 35% fewer calories. Craft brewers are also entering the space with lower-ABV or functional brews infused with botanicals and electrolytes; perfect for hydration-conscious travellers. Brands like Athletic Brewing Co., Days Brewing, and Big Drop Brewing Co. are setting new standards in alcohol-free craft beer.
2. Hard Seltzers and mid-strength spirits
Hard seltzers have become a phenomenon, offering light, refreshing beverages with fewer calories and natural ingredients. Brands like High Water and White Claw are leading the charge, providing travellers with a guilt free alternative to traditional cocktails. Meanwhile, mid-strength spirits are gaining traction. Session Spirit has created a mid-strength gin that delivers the full cocktail experience without the high alcohol content, making it ideal for those looking to enjoy the ritual of drinking while maintaining moderation.
3. Reinventing wine selections
Traditional wine selections onboard have long been dictated by mass appeal, but now, there’s room for disruption. Low intervention, organic and sustainably produced wines are resonating with consumers who care about provenance and process. Airlines like Qantas have responded by introducing biodynamic wines on select routes, tapping into this growing market. According to a 2023 report by IWSR, consumer demand for organic and biodynamic wines has seen a steady increase, with Qantas reporting higher passenger engagement and positive feedback on these new selections. Brands like 6Percent Wine are proving that high-quality, low-alcohol wines can maintain their depth of flavour while catering to those looking for balance.
4. Spirits with a wellness twist
The RTD (Ready-to-Drink) market is undergoing a transformation. Traditional high sugar, artificially flavoured cocktails are making way for premium, natural and functional alternatives. Brands like CleanCo, Lyre’s and Seedlip are redefining the spirit experience with non-alcoholic distillations that deliver complexity and character. According to a report by IWSR, the no-and-low alcohol spirits category grew by 7% in volume globally in 2022, with consumer demand for sophisticated alternatives driving further market expansion. Even full-strength spirits are adapting. Ketel One Botanical offers naturally flavoured, low calorie vodka options that cater to health conscious consumers looking for a lighter alternative.
Sustainability as a key factor
Consumers are not only prioritising health but also sustainability. Brands that focus on ethical sourcing, eco-friendly packaging and reduced carbon footprints are gaining traction. Compass Supply Solutions recognises the importance of these factors and actively works with brands that align with these values. Small changes, like using recycled materials for packaging, contribute to a larger movement towards sustainable drinking choices.
How travel operators can adapt
The better for you alcohol movement isn’t about replacing traditional drinks, it’s about expanding choice and elevating experience. Here’s how travel operators can integrate these changes seamlessly:
Curate with intent: reduce reliance on generic brands. Introduce a mix of premium low-ABV, alcohol-free and functional options that cater to different needs and preferences.
Education is key: consumers won’t choose what they don’t understand. Highlight the unique benefits of better for you drinks in menus, inflight magazines and digital touch points.
Premium, not punitive: avoid the perception that lower-alcohol or healthier means ‘less than.’ These drinks should be positioned as indulgent choices rather than compromises.
Sampling and storytelling: consider offering tasters on longer flights or cruises. Showcase the craftsmanship behind these drinks to drive engagement and repeat purchase.
Leverage Duty Free: exclusive travel retail formats of better for you beverages can create new revenue streams while reinforcing a premium image.
How CSS Group Can Help Drive This Change
We are perfectly positioned to support the travel industry in adapting to this evolving drinking culture. With extensive experience in supply chain management and deep relationships with innovative beverage brands, we offer a seamless route to integrating better for you products into onboard and duty free offerings.
Curated selection: we work closely with airlines, cruise lines and travel retailers to identify and supply a carefully selected range of premium, low ABV and alcohol-free beverages that meet consumer demand without compromising on quality.
Supply chain expertise: our logistics solutions ensure that these innovative drinks reach the right locations efficiently, maintaining product integrity and availability.
Industry insights & strategy: through data driven analysis, we help travel operators understand emerging trends and position themselves ahead of the curve.
Sustainability alignment: many better for you brands focus on ethical production, and we help businesses align with sustainability initiatives that resonate with modern travellers.
The future is balanced
The shift in drinking culture is happening in real-time. Travel retailers and operators who embrace this change will be the ones to thrive. By offering smarter, better for you choices, they can meet evolving consumer expectations while still providing an exceptional experience. For industry players looking to make an impact, the message is clear: ignore the change and risk irrelevance. Embrace it and unlock the future.
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