Drinking Differently: NoLo Boom as Markets Diverge

The Economist’s piece on 23 October 2025, set in the Lucky Saint pub where a meaningful share of pints are now alcohol-free, underscores the rebalancing rather than a complete retreat from alcohol. Western drinkers, particularly Gen Z, are “drinking differently,” trading volume for value, alternating between full-strength and 0% across occasions, and rewarding brands that deliver taste, status and convenience. That dovetails with my Beyond Dry January article (February 2025), which commented that the moderation movement has moved “365 days per year,” with young consumers driving growth in NoLo and incumbents following the money through sponsorships, portfolio extensions and M&A. As The Economist notes, there is tangible revenue in 0%—from Heineken 0.0 and Guinness 0.0 to premium pricing parity in venues like Lucky Saint.

Yet the global picture is not one-way traffic. The Economist’s assessment that emerging markets are “getting thirstier” squares with our analysis highlighting regional divergence. Whilst there is moderation-led declines in parts of Europe and North America there are increases in alcohol intake in South and parts of Africa and Latin America. For producers and investors, the implication is a mixed strategy. In developed markets, premiumisation and NoLo are the growth engines as Gen Z reshapes occasions and brands monetise 0%. In faster-growing economies, rising middle classes are still trading up within alcohol, supporting scale-led brewers and spirits brands. The take-away is that brands need to be agile. Brands will need to hedge across regions and ABVs, meet consumers where they are, and treat NoLo no longer as a small player, but as a core profit potential—just as we anticipated in Beyond Dry January when we noted that “the shift towards moderation extends beyond a month-long campaign”.