Swizzle Targets Booming APAC Mocktail Market with Tailored Strategies for Millennials and Gen Z

The global demand for non-alcoholic drinks is rising, largely driven by millennials and Gen Z, who are increasingly seeking healthier beverage alternatives. According to Berenberg Research, this trend is even more pronounced among Gen Z consumers, with 66% actively trying to reduce their alcohol consumption. The shift away from alcohol is attributed to increased health consciousness and a desire to avoid potentially embarrassing situations that could be shared on social media. This preference for non-alcoholic beverages is evident worldwide, with a particularly notable increase in popularity in the Asia-Pacific region, where beverages like mocktails are gaining traction.

Growing Popularity of Mocktails

Increasingly becoming popular, mocktails are non-alcoholic drinks that replicate the taste and sensory experience of alcoholic beverages. These beverages maintain the flavor, bite, and visual appeal of alcoholic cocktails without any of the intoxicating effects. Typically made from a mix of fruit juices, syrups, herbs, and other non-alcoholic ingredients, mocktails cater to those seeking a healthier lifestyle or wishing to avoid alcohol for personal or social reasons. According to World Metrics, the global mocktail market is projected to reach USD 932.25 million by 2027, with the ready-to-drink mocktail segment expected to grow at a compound annual growth rate (CAGR) of 10.7% from 2020 to 2027. This growth is particularly pronounced in the Asia-Pacific region, where rising health consciousness is fueling demand.

Figure 1: Global Mocktail Market

Indian brand Swizzle has been offering a range of mocktails since 2019. Recognizing the growing trend, Swizzle plans to expand its product line into the Asia-Pacific (APAC) market, targeting countries like Singapore, Malaysia, Indonesia, and the Philippines by 2025. Swizzle's strategic expansion is driven by two key factors: the hot climates in these countries, which boost demand for cold beverages, and the overall increase in beverage consumption across the APAC region.

To engage consumers in these markets, Swizzle holds outdoor events and sampling sessions, which allow them to interact directly with potential customers. The company understands that millennials and Gen Z have different motivations and preferences when it comes to non-alcoholic drinks. While both generations show a growing demand for such beverages, Gen Z consumers tend to favor what's popular and socially accepted among their peers, while millennials prioritize healthier options.

Consequently, Swizzle has developed distinct strategies for targeting each demographic. For millennials, the emphasis is on health benefits and low-calorie content. The mocktails marketed to this group include actual fruit fibers and ingredients known for their health benefits. For instance, the Desi Lemonade, with its masala infusion, is particularly appreciated by millennials who value its unique flavor and cultural appeal. Other products, like the Triple Berry mocktail, are designed to appeal to health-conscious consumers by offering essential nutrients such as Vitamin C, potassium, and magnesium, while the Virgin Mojito features lemon juice and mint to boost immunity with a significant dose of Vitamin C.

On the other hand, to attract Gen Z consumers, Swizzle focuses on trends and cultural influences that resonate with this demographic. This generation is highly influenced by Western culture and what's trending on social media. As such, marketing strategies for Gen Z emphasize popular flavors and contemporary branding, often leveraging social media platforms like TikTok to create buzz around their products. Additionally, Gen Z consumers are increasingly supportive of movements like "Dry January" or the "Sober Curious" trend, driven by desires to live healthier lifestyles or to avoid appearing in compromising situations on viral social media posts.

Competitive Pricing and Market Positioning

Swizzle's mocktail offerings are competitively priced, appealing to a wide range of consumers looking for affordable non-alcoholic drink options. On Amazon India, the Swizzle Mocktail Assorted Pack (4 x 250 ml) — which includes popular flavors such as Virgin Mojito, Desi Lemonade, and Triple Berry — is listed at Rs 409.00 (USD 4.87). This pricing is comparable to similar products, such as Mala's Fruit Mocktail Syrup (750 ml), which is priced at Rs 293.00 (USD 3.49).

Figure 2: Swizzle Mocktail Assorted Pack

Additionally, Swizzle products have been well-received by customers, reflecting strong market positioning. The Swizzle Mocktail Assorted Pack has garnered a favorable four-star rating (out of five) on Amazon, highlighting a high level of customer satisfaction and further reinforcing its competitive advantage in the non-alcoholic beverage market.

Conclusion

The combination of competitive pricing and positive customer feedback positions Swizzle's mocktails as a strong contender in the growing market for non-alcoholic drinks, particularly among health-conscious consumers looking for ready-to-drink options. Swizzle’s differentiated approach highlights the importance of understanding the unique preferences and motivations of each consumer segment. By catering to the distinct needs of Millennials and Gen Z, Swizzle aims to capitalize on the growing demand for non-alcoholic beverages in the APAC region and solidify its position in this expanding market.