Canada’s booming non-alcoholic beverage sector is showing no signs of slowing down, with new data pointing to sharp growth, changing consumer habits, and an expanding presence on store shelves and bar menus nationwide.The market hit $199 million in sales between June 2023 and June 2024, a 24% jump year-over-year, according to new figures highlighted by Upside Drinks CEO Simon Poulin. Industry watchers say the gains prove non-alcoholic products have moved well beyond seasonal gimmicks, with Canadians buying them steadily throughout the year. Analysts expect the category to continue climbing at roughly 5.5% through 2030 as brands push innovation and retailers carve out more space.Non-alcoholic beer remains the backbone of the sector, holding about 76% of sales and growing 23.3% YoY. .Even with more alcohol-free options entering the market, improved taste and strong brands are keeping NA beer firmly in the lead. But the fastest mover is non-alcoholic spirits, which recorded 67.7% growth as Canadians look for elevated, cocktail-style experiences without the alcohol. Ready-to-drink mocktails are also gaining traction among consumers wanting convenience and “bar-quality” flavours at home.The surge is being fueled largely by younger Canadians, including Gen Z and Millennials, who continue to gravitate toward wellness-focused lifestyles and lower alcohol consumption. Moderation is driving the trend: roughly 75% of non-alc shoppers also purchase alcohol, and about 70% of on-premise NA consumers say they will keep choosing these drinks well beyond Dry January..Poulin says the data reflects a broader cultural shift rather than abstinence. “Eighty-two percent of Upside Drinks customers also buy alcohol. The story isn’t abstinence, it’s moderation. Canadians are flex drinking and choosing the right option for the moment.”Bars and restaurants are playing an outsized role in introducing consumers to mocktails, with mentions on Canadian menus rising about 29.4% in early 2024. But retail remains the engine of volume, as grocery stores, mass retailers and specialty shops drive repeat purchases. Household spending on non-alcoholic beverages is expected to climb from $300.8 in 2024 to $319.4 in 2028, showing that Canadians are increasingly budgeting for alcohol-free options as everyday staples.Industry observers say mid-single-digit growth will likely continue in the coming years, anchored by strong NA beer performance and the rapid rise of NA spirits and RTD mocktails. With bars upgrading their lineups and retailers boosting shelf space, brands focusing on premium flavours, convenience and wellness are best positioned to capture Canada’s growing “flex drinking” market.“Consumers want more than alcohol-free — they want function,” Poulin said, noting his company’s wellness section grew 58% over the past six months.