Costco has officially embraced the growing trend of nonalcoholic drinks by introducing Hiyo, a brand of social tonics, to its warehouses across the United States. This move reflects a shift in consumer preferences towards health-conscious beverage options, particularly nonalcoholic cocktails, which have seen significant market growth in recent years.
According to Sherry Frey, vice president of wellness at NielsenIQ, the interest in nonalcoholic beverages stems from increased consumer awareness regarding the functionality of drink ingredients. The rise of sober-curious movements and wellness trends has also contributed to this expanding market, as consumers seek healthier alternatives to traditional alcoholic drinks. A recent report from Allied Market Research highlights that the global nonalcoholic cocktail market was valued at approximately $1.3 billion in 2024 and is projected to grow to $5 billion by 2035, reflecting a compound annual growth rate (CAGR) of 13% over the decade.
The nonalcoholic spirits segment specifically is expected to nearly double, increasing from $325.8 million in 2023 to $706.7 million by 2033. This growth is fueled by an increasing number of consumers seeking premium flavor profiles without alcohol, as noted by Allied Market Research.
Costco’s new offering, the Sunset Party Pack, includes an assortment of three popular flavors: Blackberry Lemon, Peach Mango, and Passion Fruit Tangerine. Each of these drinks contains organic adaptogens and natural nootropics, aiming to provide a mood-enhancing and stress-relieving experience. The pack includes 18 cans—six of each flavor—available exclusively at Costco locations.
Hiyo’s products fall under a category known as “functional beverages,” which claim to promote health benefits. While the U.S. Food and Drug Administration oversees ingredient regulations, the scientific backing for many of these claims can be inconclusive. For instance, some brands, like SkinTe, advertise benefits such as improved skin hydration through collagen, but research from Harvard Medical School has not definitively supported these claims.
Despite the potential risks associated with nonalcoholic beverages, Joe Zagorski, a toxicologist at the Center of Research on Ingredient Safety at Michigan State University, advises caution with functional drinks. He emphasizes that even seemingly healthy options can be harmful in excessive amounts, noting that “the dose makes the poison.”
Costco has previously explored the nonalcoholic beverage space, having offered drinks from Edna’s Non-Alcoholic Cocktail Co. in select Canadian locations in 2025. In 2020, the retailer stocked The Tinley Beverage Company’s Beckett’s nonalcoholic ready-to-drink cocktails in a limited number of U.S. warehouses. These products were part of Costco’s Road Show program, designed to showcase new items through prominent displays and brand ambassadors.
Costco’s approach to product selection is strategic. As noted by Bob Nelson, the chain’s senior vice president of financial planning and investor relations, the company focuses on delivering value through high-quality items at competitive prices. With only about 3,800 items available per warehouse, Costco emphasizes operational excellence and works closely with vendors to provide ready-to-sell products.
The introduction of nonalcoholic cocktails signifies a notable shift in Costco’s merchandise strategy, aligning with broader consumer trends toward health and wellness. As the market for sophisticated alcohol-free options continues to grow, Costco’s move could position the retailer advantageously in this evolving landscape.
