Costco is making a notable shift in its beverage offerings by introducing nonalcoholic cocktails and tonics to its warehouses across the United States. The bulk retailer has partnered with Hiyo to launch the Sunset Party Pack, which includes an assortment of three popular flavors. This move reflects the growing consumer interest in sophisticated, alcohol-free alternatives.
According to Hiyo, the Sunset Party Pack features an 18-count variety pack with six cans each of Blackberry Lemon, Peach Mango, and Passion Fruit Tangerine. Each drink is designed with organic adaptogens and natural nootropics meant to provide a “mood-enhancing, stress-relieving lift.” This aligns with a broader trend towards health-conscious consumption, especially among younger demographics.
Market Trends Fueling Nonalcoholic Beverage Growth
The rise of nonalcoholic cocktails is part of a larger market trend that shows increasing consumer sophistication regarding ingredient functionality. In statements to KSAT, Sherry Frey, vice president of wellness at NielsenIQ, noted that consumer awareness has heightened, prompting a variety of brands to compete for market share.
A recent study from Allied Market Research highlights that the global nonalcoholic cocktail market was valued at approximately $1.3 billion in 2024 and is expected to surge to $5 billion by 2035, reflecting a compound annual growth rate (CAGR) of 13%. This growth is driven by innovative product offerings and a surge in sober-curious movements, alongside a broader availability of these beverages in bars and retail settings.
The nonalcoholic spirits segment is also on a strong upward trajectory, projected to grow from $325.8 million in 2023 to $706.7 million by 2033. This trend indicates a consumer preference for premium flavor profiles in alcohol-free options, as noted by Allied Market Research.
Costco’s Approach to New Merchandise
Costco’s entry into the nonalcoholic cocktail space is not entirely new, as the retailer has experimented with similar products in the past. In 2025, it offered Edna’s Non-Alcoholic Cocktail Co. drinks in select Canadian warehouses. Prior to that, in 2020, Costco briefly stocked products from The Tinley Beverage Company, which aimed to introduce a broader selection of nonalcoholic ready-to-drink cocktails.
Costco’s strategy revolves around providing high-quality products at competitive prices. According to Bob Nelson, the chain’s senior vice president of financial planning and investor relations, the company focuses on delivering the best value to its members with a limited selection of approximately 3,700 to 3,800 items per warehouse. This is a stark contrast to the 142,000 items available at a typical Walmart Supercenter.
The retailer employs a “Road Show” program to introduce new products, featuring pallet displays and brand ambassadors to enhance visibility and consumer engagement. Although Costco has explored the nonalcoholic space before, the recent addition of Hiyo’s beverages marks a significant expansion of its offerings.
While Costco’s new products are marketed as healthier alternatives to traditional alcoholic beverages, experts caution that all drinks should be consumed with care. Joe Zagorski, a toxicologist at the Center of Research on Ingredient Safety at Michigan State University, emphasized the importance of moderation, stating that “the dose makes the poison.”
As consumer preferences continue to evolve and the market for nonalcoholic options expands, Costco’s latest offerings may resonate well with health-conscious shoppers looking for enjoyable alternatives to alcohol. The growing trend appears to reflect a shift towards lifestyle and wellness, making this a pivotal moment for retailers looking to adapt to changing consumer demands.
