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In the UK, the no and low alcohol (nolo) market is set to double in value by 2028, fuelled by a generation of health-conscious consumers and major brand investment. Claire Breheny, partner and head of trade marks at IP law firm Mathys & Squire, examines how this transformation is creating new challenges – and opportunities – for beverage makers and IP professionals alike.

From ‘Dry January’ to ‘Sober October,’ there has been a generational shift in attitudes towards alcohol consumption following the rise in popularity of ‘no and low alcohol’ (nolo) beverages. The nolo market reached a £380 million valuation in 2024, is expected to be worth £413 million in 2025, and is forecasted to hit £800 million by 2028, according to Mintel. The UK, historically known for having a heavy-drinking population, has ranked eighth in the world in non-alcoholic sales in 2024, from 13th in 2022. This shift can be explained by several factors, including a trend of health consciousness among the younger generation. Similar patterns have, unsurprisingly, emerged at the UK Intellectual Property Office (UKIPO), with a 20% increase in trade mark filings for non-alcoholic beer and 19% for non-alcoholic cider over the past two years.

Shifting consumer preferences

The primary driver of the nolo trend is Ge-Z, comprising those born between 1997-2012, which is currently estimated to make up 17-20% of the UK population. Commonly labelled the ‘sober-curious generation,’ a survey by Mintel found that around 1/3 of people aged 18-24 do not consume alcohol at all, with 40% of the Gen Z population putting effort into alcohol moderation in 2023. Notably, abstinence-focused movements such as ‘Dry January’ initiated by Alcohol Change UK experienced more than double growth in participants, from 4.2 million in 2019 to 8.5 million in 2024.

This wave of ‘sober curiosity’ mirrors the growing trend of health and wellness consciousness worldwide. According to the World Health Organization, alcohol is a contributing factor to more than 200 diseases and injury-related health conditions. While public awareness of such risks has historically been low, the influence of the digital age and access to information via the internet have continuously exposed Gen-Zers to such risks. This is further catalysed by the Covid-19 pandemic, which redirected the focus of the general population towards mental well-being and health perception, according to a report by the Global Wellness Institute.

In addition, the UK’s growing ethnic and religious diversity, particularly evident among Gen Z as the second-most ethnically diverse generation yet, has contributed to declining alcohol consumption and shifting societal drinking patterns, stemming from cultural or religious factors.

Nolo becoming the norm

With the growing awareness and normalisation of non-alcoholic beverage consumption, established companies have responded by expanding their portfolios to embrace non-alcoholic alternatives.

For instance, brands such as Guinness and Tanqueray have launched ‘0.0%’ versions of their original lines. In 2024, Carlsberg acquired soft drink giant Britvic, expanding its range of non-alcoholic drinks, alongside its own non-alcoholic variants of Somersby Cider, Kronenberg 1664 Blanc and Carlsberg. This acquisition created the multi-beverage powerhouse Carlsberg Britvic and put Carlsberg in the prime position to cater to consumer needs, with soft drinks now making up around 30% of its business.

Simultaneously, this shift in consumer attitudes has paved the way for new entrants specialising in nolo beverages, such as Lucky Saint in the UK. The attractiveness of alcohol-free alternatives is further supported by legislation changes in the UK for alcohol duties, with the imposition of a 3.6% increase on the standard rate on non-draught products taking effect from February 2025. In turn, beverages with a low ABV are entitled to draught relief, with a lower rate imposed for nolo drinks under 3.5% ABV.

Additionally, the rise in popularity of nolo beverages is also encouraged through high-profile endorsements. Advertisement regulation changes in the UK and EU have prompted companies to refocus their marketing strategies towards their non-alcoholic offerings to retain brand recognition, as the public promotion of alcohol has been limited, or in some jurisdictions, prohibited. This is evidenced by Heineken’s partnerships with UEFA and Formula One to promote its 0.0% range, and AB InBev’s promotion of Corona Cero in the 2024 Paris Olympics.

However, the UK Advertising Standards Agency stipulates that advertisements must not unintentionally promote alcoholic beverages. Therefore, if an alcohol-free product shares branding with an alcoholic one, marketers must ensure the positioning does not imply endorsement of the alcoholic variant.

Celebrities have also hopped on the nolo bandwagon by launching their own non-alcoholic beverage brands, thereby fuelling consumer curiosity and reinforcing the mainstream appeal of alcohol-free offerings. Actor Tom Holland debuted his brand ‘Bero’ for non-alcoholic beer, while Formula One champion Lewis Hamilton co-founded a line of non-alcoholic agave spirits, ‘Almave’.

Elsewhere, the hospitality industry has adapted to this market shift, with pubs and restaurants now offering a diverse range of nolo drinks to promote a socially inclusive environment that caters to all. This not only includes nolo variants of existing beers and spirits, but also their own ranges of non-alcoholic cocktails or mocktails. Some establishments have even gone as far as to become alcohol-free altogether.

How the law is changing

It is evident that the nolo industry is and will continue experiencing an upward growth trajectory. Consumer behavioural shifts alongside the increased availability of non-alcoholic alternatives from new and established brands, paired with their significant and widespread promotion, have transformed the alcohol-free movement from a fleeting trend to a disruptive force in the beverage industry.

Traditional brewery and distillery proprietors may need to review their IP portfolios to ensure that sufficient protection is sought. Indeed, this is reflected by the surge of trade mark filings for nolo drinks in the UK register. In 2024, 37% of beer trade mark filings were attributable to their non-alcoholic counterparts, reflecting the continued investment and innovation in the industry. At the same time, this development poses new legal considerations.

Under the Nice Classification system, low-alcohol beverages in general are in Class 33, however, non-alcoholic wines and other non-alcoholic drinks fall in Class 32. Beers and low-alcohol beers fall under Class 32 also.

Previous case law indicates that non-alcoholic and alcoholic beverages were historically considered dissimilar. In Fine Wines v Zombie, the EUIPO declared in 2020 that “The contested goods, non-alcoholic beverages … are dissimilar to the Opponent’s goods [wines]. They do not originate from the same companies, do not share their method of use, and they are neither in competition nor complementary.”

However, the legal position has shifted to reflect current commercial and social practices. In a recent decision (September 2025), the EUIPO found in Fondel Creations v P-Touch Private, that: “The contested alcoholic beverages (except beers) are similar to the opponent’s non-alcoholic beverages in Class 32… Some specific non-alcoholic drinks are similar to some specific alcoholic drinks, for example, alcohol free wine in Class 32 and wine in Class 33…Non-alcoholic wine is intended to be consumed in the same circumstances as alcoholic wine by consumers who cannot, or choose not to, consume alcohol. Since consumers will perceive them as alternative products, they must also be considered to be in competition. It is not uncommon for non-alcoholic wine to be sold in wine shops or specialised wine sections in supermarkets.”

This shift could lead trade mark owners with previous registrations for either type of beverage to enjoy a broader scope of protection as nolo drinks begin to be perceived as substitutes or in competition with alcohol, particularly given that they are now increasingly originating from the same entities.

However, the risk of conflicts arising from nolo filings could pressure changes to brand enforcement strategies, protection and clearance searches, not only for new entrants on the market, but also for existing brands. It will be interesting to see if conflicts arise due to this shift between brands, which may have been able to co-exist previously.