Alcohol is no longer the go-to beverage for many consumers looking to relax after a long day, celebrate with friends or break the ice when meeting new people that it once was – rather, consumers increasingly are reaching for other functional beverages for “controlled indulgence” and added benefits, according to consumer insights from Spate and NielsenIQ.
According to Gallup data, a record-low 54% of Americans reported last summer that they drink alcohol – down from 58% the year before and 62% in 2023. At the same time, a majority of Americans – 53% – say drinking just one to two drinks a day is bad for health.
The shift is taking a toll on alcohol sales with a 3.3% decline in beer and cider, 4.1% drop in spirits and 6.1% drop wine in the 52 weeks ending Jan. 3, 2026, according to NIQ off premise channel data excluding ready-to-drink options.
While Gallup data does not suggest the decline in alcohol consumption is caused by people shifting to other mood-altering substances, NIQ data shows an 18.5% year-over-year increase in non-alcoholic beer, wine and spirits sales in 2025 to reach $1.01 billion.
Spate’s Popularity Index, which combines search data from Google, TikTok and Instagram to reveal a category or trend’s popularity, reinforces NIQ data but appears to contradict Gallup’s virtuous assertion that people are not shifting to other mood alternating options, like THC or CBD.
For example, while Spate data shows non-alcoholic wine to have “very high popularity” – with more than 1.1 million more searches from January 2024 to January 2025 – non-alcoholic bourbon, gin and margaritas have “low popularity,” increasing 76.7% to more than 210,900 searches, 27.9% to 96,6000 searches and 41.6% to 143,200 searches in the same period respectively. Non-alcoholic spirits and hop water, however, earned “medium popularity” status in the period with an uptick of 16.2% to 163,300 searches and 3.4% to 90,600 searches, respectively.
THC-infused beverages gain traction
The popularity score for THC drinks, however, increased a whopping 86.9% in the same period, according to Spate, which noted Google search’s share was 97.9%. The brands leading the uptick in searches include Nowadays, Ohho and Ayrloom, according to Spate.
Younger generations are leading the surge in in THC beverage purchases in bars and restaurants, with 27% of Gen Z and 26% of Millennials reporting they consumed beverages with THC on premise in past six months, according to an NIQ survey conducted in the fall of 2025. For comparison, 9% of Gen X and 2% of Boomers said the same.
The top two reasons consumers reach for THC drinks: to relax and to manage stress and anxiety, accord to NIQ data.
Adaptogens earn buzz for escapism
THC is far from the only alternative to alcohol that consumers seek, with data from Spate and NIQ pointing to an uptick in a wide range of functional beverages for escapism.
Searches for functional beverages are growing across platforms, with Spate data revealing a 14.1 increase on Google, a 43.3 increase on TikTok and a 171.1% increase on Instagram in 2025 over 2024.
The top trends driving the most significant change in the popularity of functional escapism are drinks with kava, mushroom coffee, social tonic and beverages with adaptogens and nootropics, according to Spate.
“Interest in adaptogen drinks is driven by branded ‘euphoric’ beverages,” like Kin, Moment and Spacegoods, according to Spate. It adds the “TikTok conversation is dominated by paid creator content and hashtags like #ad, #sobriety and #adaptogens – showing a blend of brand-focused buzz, sobriety concerns and ingredient-led curiosity.”
This translates to a more than $1.6 billion opportunity for beverages with adaptogens – up more than 18% in the 52 weeks ending Feb. 14, 2026, according to NIQ data.
Like THC drinks, consumers say they are reaching for these beverages on premise to relax and as a healthier alternative to alcoholic drinks. And, like THC drinks, the trend is led by younger generations with 29% of Gen Z and 26% of Millennials reporting they consumed a functional wellness drink that does not contain THC on premise in the past six months, according to an NIQ survey published in Fall 2025.
Takeaways
The data shows that while alcohol consumption is declining, many consumers are not opting out completely. Rather, they often reach for THC, non-alcoholic and “micro-dosed formats” in the same occasions.
The data also shows that “indulgence now requires justification,” according to the report. It adds, “The brands that command margin will be those that clearly articulate benefits, educate consumers and embed functional credibility into product development and messaging.”
