Online grocer Thrive Market goes dry, launches non-alcoholic products

Thrive Market’s Shift Away from Alcohol: A Growing Trend in the Health and Wellness Industry

Thrive Market, a leading online health and grocery marketplace, has announced its decision to remove all alcohol products from its subscription service. This move makes it the first major online grocer to do so, and it’s a significant shift in the company’s strategy. Instead, Thrive Market will focus on offering a wide range of non-alcoholic beverages, including beer, wine, and mocktails from over 20 brands and 100 products.

The company’s CEO, Nick Green, cites the growing trend of consumers opting for healthier alternatives as the reason behind this decision. “It’s time to really double down on non-alcohol and take a stand that is aligned with where science and where we think attitudes among health and wellness consumers is shifting,” Green explained. He believes that alcohol is no longer the future, and Thrive Market wants to be at the forefront of this change.

A Shift in Consumer Preferences

The decision to remove alcohol from Thrive Market’s platform reflects a broader shift in consumer preferences. A recent Gallup report found that only 54% of U.S. adults now consume alcohol, which is one of the lowest levels in decades. Additionally, Nielsen beer scanner data shows that U.S. beer volumes have been declining by a mid-single digit percentage year over year since June. This trend is not limited to beer, as the overall alcohol consumption in the U.S. is decreasing.

Research firm Bernstein notes that this decline in alcohol consumption is a broad-based reduction, with consumers exploring alternative options such as spirits-based ready-to-drink cocktails and non-alcoholic beverages. The non-alcoholic drinks sector is booming, with sales projected to reach $5 billion by 2028, according to alcohol data firm IWSR. Major brands like AB InBev, Molson Coors, and Heineken have already entered the market, offering a range of non-alcoholic products.

Thrive Market’s Data and Logistics

Thrive Market’s own data supports this trend, with searches for non-alcoholic options on their website climbing steadily over the last three months. The company has over 1.7 million paying members nationwide and brought in over $700 million in sales last year. As their average shopper loads up on 15 items per basket, Thrive Market is betting that a growing share of those items will be alcohol-free.

The company also cites logistics as a motivation for the move. While alcohol can only be shipped to 39 states, most non-alcoholic beverages can be shipped across all of the U.S. This change will allow Thrive Market to focus on being a one-stop shop for health-conscious consumers, offering a wide range of innovative products that cater to their needs. As Green puts it, “People are basically trading to a healthier alternative. We can focus on being that place that they go for innovation.”