Prime Highlights:
- Thrive Market will remove all alcohol from its platform and focus entirely on nonalcoholic drinks.
- The company is tapping into the booming nonalcoholic beverage market, projected to reach $5 billion by 2028.
Key Facts:
- The online grocer has over 1.7 million members and earned more than $700 million in sales last year.
- Searches for nonalcoholic drinks on ThriveMarket.com have been steadily increasing, reflecting a nationwide shift away from alcohol.
Background:
Online grocery platform Thrive Market has announced it will eliminate all alcohol from its subscription service, becoming the first major online grocer to make the move. The decision reflects a growing trend toward nonalcoholic beverages and declining alcohol consumption in the United States.
CEO Nick Green said the company’s shift aligns with changing attitudes in health and wellness. He said the company is focusing more on nonalcoholic products to match changing health trends and consumer habits.
Thrive Market plans to replace its alcohol category with over 100 products from more than 20 brands, including nonalcoholic wines, beers, and mocktails. The decision comes as alcohol drinking in the U.S. drops, with just over half of adults reporting they consume it, based on a Gallup survey.
Industry analysts note that consumers are increasingly exploring alternatives, from nonalcoholic drinks to ready-to-drink cocktails. Research firm IWSR projects nonalcoholic beverage sales in the U.S. will reach $5 billion by 2028.
Green also cited logistics as a reason for the change: alcohol can only ship to 39 states, while nonalcoholic beverages can reach all 50. Thrive Market aims to become the top choice for healthy and innovative pantry items.
Most members buy around 15 items per order, and the company thinks offering more alcohol-free products will meet demand and grow its online grocery business.
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