Dry-state Gujarat finds a new high:Non-alcoholic drinks’ fizzing market now worth crores; massive consumption surge among Gen Z

In Gujarat, where liquor prohibition has long made alcohol a legal and social taboo, a different kind of beverage culture is quietly taking shape. Non-alcoholic drinks, particularly malt-based beers and flavoured fizz beverages, are finding a growing market among youngsters, restaurants, hotels and social gatherings. The state’s non-alcoholic drink market has quietly expanded into a ₹10 crore annual industry, generating ₹85 to ₹90 lakh in monthly sales. Driven by health-conscious Gen Z consumers, low-sugar preferences, and a desire for social fizz without a hangover, zero-proof beers, mocktails, and dealcoholized spirits are rapidly redefining local dining and social gatherings. Numbers behind the fizz Category pioneer Coolberg, which launched in 2016 when non-alcoholic beer was virtually non-existent in India, now commands 50% to 60% of Gujarat’s market. “Ahmedabad leads as our biggest market at 40%, followed by Surat at 30%, Rajkot at 20%, and Vadodara at 10%,” adds Sharma. He describes these drinks as an independent lifestyle category that fulfills a genuine gap between sweet colas and energy drinks. Youth culture and zero-proof spirits The surge is largely fuelled by a demographic shift toward guilt-free social drinking. Major global brands like Heineken and Budweiser have entered the segment, helping drive a 4x year-on-year growth rate across the country. “It started with foreign trends and local youth hosting alcohol-free coffee raves and morning parties,” explains Achint Shah of Ruchi Beverages, a seven-year industry veteran. Beyond malt beer, the market has now expanded into non-alcoholic whiskey, rum, gin, vodka, tequila, wine, and champagne, Shah explains. Overcoming stigma and going mainstream The journey wasn’t without initial hurdles. In a dry state, the word ‘beer’ on a label invited heavy hesitation from pan parlours, luxury hotels, and local authorities. Both Sharma and Shah recall early days of keeping lab certificates handy to clear warehouse inspections. The science behind alcohol-free brewing Crafting an authentic zero-proof drink involves specialised brewing. Manufacturers either halt yeast fermentation early using cold temperatures or physically extract alcohol from fully brewed beer using low heat and membrane filtration. Foreign producers often brew a standard alcoholic batch first, subsequently absorbing the alcohol out of 20% of the production volume for zero-proof lines. Innovation drives the market The trend is a permanent fixture in India’s evolving food and beverage landscape, said Sanjay Daryani, President of the National Restaurant Association of India (NRAI) while on a visit to Gujarat. “This movement demonstrates how innovation adapts around unique market constraints,” Sanjay added. The segment’s rapid growth suggests that curiosity is turning into habit. And in a state where alcohol remains prohibited, the desire for the fizz, flavour and social experience associated with a drink has not disappeared, it has simply found a different bottle.