As non-alcoholic beverages gain steam, Drizly's Head of Consumer Insights Liz Paquette joined Yahoo Finance Live to discuss the accelerating trend. She notes non-alcohol purchases on the platform are up 62% in 2023, cementing "a trend that is here to stay" after rapid growth.

Paquette believes ongoing post-pandemic socialization will continue driving demand. With drinking often tied to hosting and celebrations, consumers want options. She highlights non-alcoholic beer as the top performer in the broader non-alcohol category, while spirits alternatives are starting to find traction as well.

Paquette notes that consumers are seeking value, saying it's "critically important for purchase."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

[AUDIO LOGO]

JULIE HYMAN: As we inch closer to New Year's Eve, you may be checking your liquor cabinets to stock up for parties but a big trend in the refreshment sector this year has been the growth of non alcoholic beverages. Online ordering and delivery platform, Drizly, seeing the share of alcoholic beverages growing 62% since last year.

For more on this and much more about what's going on in the space, we turn to Liz Paquette, head of consumer insights at Drizly Liz, it's good to see you. I do want to dig into the non alcoholic but first I just want to ask you big picture, what has surprised you the most this year? I non alcoholic has seen a big change. What are the trends that have sort of stood out the most surprised you the most as you reflect on the year?

LIZ PAQUETTE: Sure, and thank you so much for having me. So in terms of what has surprised me most this year, non health has definitely been one of those that has moved from being an upcoming trend to a trend that is here to stay. This is something that consumers are going to continue to look to when they're hosting, celebrating, having everyday kind of occasions with friends and family.

So last year, non ALC sales were up about 34%, they're up about 62% this year. And what's driving that in large part, what's interesting is that non ALC beer is actually the number one subcategory within the non ALC category specifically. However, we're seeing spirits accelerate quite a bit this year with sales in that category up 162%. So finding that consumers are looking to make more mocktails at home, which is in large part a trend that is in line with overall consumption within the Bev ALC category as well. Consumers continue to mix cocktails at home, kind of post-pandemic as they created this new behavior.