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Dry January has become a key barometer for the beverage industry. What started as a short-term reset is now a global behavioural test, offering insights into how consumers engage with social drinking without alcohol. Evan Quinn, CEO of beverage brand Hiyo, examines what brands can learn to maintain growth through Dry January and beyond.

Participation in Dry January continues to grow annually, with many people now approaching it less as a restriction and more as a period of experimentation. But for most participants, the challenge isn’t abstaining from alcohol itself; it’s navigating the social moments built around it. Dinner parties, networking events, celebrations and casual nights out don’t disappear in January. What changes is the role alcohol plays within them.

From my perspective as a founder working in the non-alcoholic beverage space, Dry January consistently brings these questions to the surface. We see a growing focus on social tonics – beverages designed to support shared occasions with moderation – and how Dry January crystallises consumer behaviour, revealing gaps in traditional offerings and emerging expectations. For beverage brands, Dry January is less about sobriety and more about insight while setting the tone for the rest of the year.

Social drinking is about more than alcohol

Alcohol has historically served multiple roles at once. Beyond flavour, it influences mood, perception and social dynamics. It signals participation, marks a transition from work to leisure and helps structure social rituals. Drinking is closely tied to feelings of relaxation, connection and social confidence, effects that go well beyond taste alone.

When alcohol is removed from those moments, the gap can become more visible. Many early non-alcoholic or functional beverages focused primarily on replication – mimicking the taste, aroma or appearance of beer, wine or spirits. While this approach satisfies some consumers, category data suggests that taste parity alone has not consistently driven sustained engagement across the segment.

Dry January highlights why: social drinking is experiential, not transactional. Consumers are increasingly looking for beverages that support how they want to feel in social settings: light, present and connected. This has fuelled growing demand for functional ingredients such as adaptogens, nootropics and botanicals that support mood, focus or relaxation. We’re seeing how these ingredients are influencing consumer decisions, with many actively exploring beverages with various functional benefits – signalling a shift in expectations for what a social drink should offer. This shift is reshaping how brands approach formulation, use occasion and advertising.

The rise of functional social beverages

One of the clearest trends emerging from Dry January is growing interest in beverages designed around function, not just flavour. Over the past several years, there’s been a steady growth in functional beverage segments, particularly those associated with mood, stress management, and everyday wellness. Rather than asking, “Does this taste like alcohol?” consumers are increasingly asking, “Does this fit the moment I’m in?”

This shift has fuelled experimentation across categories, including drinks that incorporate botanicals, adaptogens and other functional ingredients associated with relaxation or mood. This represents a move toward more intentional formulation – where ingredient selection, sensory experience and positioning are guided by how and when the beverage is consumed. However, the challenge for beverage brands is striking the right balance. Functional ingredients and innovative formulations are drawing attention, but without flavours that resonate, long-term growth is difficult to achieve.

Building a brand in this space has reinforced how intentional social beverage design needs to be. Much of the early learning comes from observing how consumers integrate functional options into real-world settings, and how quickly they disengage from products that feel overly medicinal, performative or disconnected from the social moment. These behaviours are consistent across the category and underscore the importance of designing beverages that feel socially relevant, not just functionally interesting.

At the same time, functional beverages introduce additional complexity. Unlike alcohol, whose effects are immediate and widely understood, functional ingredients often have more nuanced onset times and varied consumer responses. This places a premium on formulation discipline, regulatory awareness, claim substantiation, and clear communication.

However, consumers are sceptical of overstated claims, particularly in wellness-driven categories. Transparency, credible sourcing and dosages, and realistic expectations have become baseline requirements rather than differentiators.

Dry January as a signal, not a spike

While Dry January is technically a one-month event, its influence extends far beyond January. Consumer research increasingly points to a broader shift toward moderation, with many drinkers adopting flexible routines, choosing when and how often to drink rather than adhering to all-or-nothing patterns.

Data across non-alcoholic and low-alcohol categories suggests that interest does not disappear after January; instead, it stabilises. For brands, this indicates that non-alcoholic and functional beverages are no longer seasonal experiments, but long-term portfolio considerations.

Dry January may accelerate these conversations, but it does not create them. It simply concentrates consumer intent into a visible moment, offering brands a clearer view of how preferences are evolving year-round.

Designing for occasion, not abstinence

One of the most valuable lessons Dry January offers brands is the importance of occasion-based design. Consumers do not want to feel like they are opting out of a social experience; they want beverages that feel appropriate for the moment.

This has clear implications for product development. Sensory experience remains a critical factor, as mouthfeel, carbonation, and flavour complexity all influence how consumers perceive value and whether a beverage feels appropriate for a social setting. Function, too, should be thoughtfully aligned with use occasion: drinks intended for evening gatherings may emphasise calm or relaxation, while options for daytime or professional settings should support clarity and balance. Even the language brands use matters, with products framed around inclusion, enhancement, and moderation resonating more strongly with today’s consumers.

As moderation becomes normalised, beverages that give optionality for social participation are gaining relevance in a major way.

What this means for beverage brands

Dry January is no longer just a consumer trend; it is a strategic lens. For brands, it provides a concentrated window into evolving preferences that shape product development throughout the year.

• Non-alcoholic does not mean non-functional: Consumer demand continues to shift toward beverages designed with intentional benefits in mind.

• Credibility builds trust: Clear ingredient communication and substantiated claims and dosages are essential.

• Social relevance drives repeat behaviour: Products designed around real-world occasions are more likely to move beyond trial into habit.

Dry January is not a temporary pause in consumer behaviour; it is a preview. It reveals how people want to show up socially when alcohol is no longer the default. For beverage brands, the opportunity is not to try to replace alcohol, but to design products that support presence, connection, and moderation in real-world moments. The brands that recognise this will build relevance far beyond January. Those that don’t will continue to treat a structural shift like a seasonal trend.