Costco rarely sets trends.

I remember walking its aisles years ago and sampling new items, but noticed the chain was rarely ahead of the curve.

For example, it stocked K-Cups only after Keurig machines were mainstream, which makes sense, given its limited SKUs and mass audience.

Now, nonalcoholic cocktails and tonics have arrived, and the warehouse club has officially jumped on that trend.

Costco has quietly added Hiyo, a social tonic, to warehouses nationwide, according to the brand.

Nonalcoholic cocktails are a growing category

Nonalcoholic cocktails, spirits, and beers have been a growing market trend.

“Consumer savviness on functionality of ingredients has really increased,” Sherry Frey, vice president of wellness at NielsenIQ, told KSAT.

It has attracted a variety of operators fighting for market share.

“The market is further fueled by innovative product offerings from both established beverage companies and new entrants, emphasizing natural ingredients and functional benefits. Additionally, the rise of sober-curious movements and wellness trends, coupled with the expansion of availability in bars, restaurants, and retail, are propelling the market’s expansion globally,” according to a new study from Allied Market Research.

  • Rapid market expansion: The global nonalcoholic cocktail market was valued at about $1.3 billion in 2024 and is projected to grow to $5 billion by 2035, implying a strong 13% CAGR through the decade as consumer demand for sophisticated alcohol-free options rises, according to a WiseGuy report.
  • Exploding spirits alternatives: The nonalcoholic spirits segment is forecast to nearly double from $325.8 M in 2023 to $706.7 M by 2033, growing at an 8.1% CAGR as drinkers seek alcohol-free replacements with premium flavor profiles, shared Allied Market Research.
  • Broader category boom: The wider nonalcoholic drinks market, which includes zero-proof cocktails, tonics, functional beverages, and soft drinks, was valued at about $1.3 trillion in 2023 and is expected to nearly double to $2.9 trillion by 2035, reflecting overall lifestyle and wellness-driven growth, Allied Market Research added.

As with most industry research, these growth forecasts are estimates rather than guarantees and depend on sustained consumer demand.

Costco adds nonalcoholic tonic brand

Costco just added an exclusive from Hiyo to its entire U.S. warehouse fleet. The Sunset Party Pack, according to the brand, is an 18-count variety pack featuring three of the brand’s top-selling flavors.

The Sunset Party Pack includes six each of the following:

  • Blackberry Lemon: A blend of blackberry and lemon
  • Peach Mango: A mix of peach and mango with a tropical profile
  • Passion Fruit Tangerine: A fragrant combo of passion fruit and tangerine

Made with organic adaptogens, natural nootropics, and functional botanicals, each can offers what the brand calls a “mood-enhancing, stress-relieving lift, or ‘the float,'” according to a press release.

Functional beverages are a growing category

Hiyo falls into a loosely regulated category called “functional beverages,” drinks that claim to bring health or other benefits.

The U.S. Food and Drug Administration regulates ingredients and requires drink labels to be truthful, and the Federal Trade Commission can step in if companies make false claims.

“Functional beverage makers generally make less specific claims, and the science behind them is sometimes inconclusive. SkinTe, a sparkling tea, says it ‘supports skin hydration and elasticity’ with 3,000 milligrams of collagen in a 12-ounce can. But last year, Harvard Medical School researchers said there’s not yet solid evidence that collagen drinks or supplements enhance skin, hair, or nail growth,” according to The Chicago Sun-Times.

These drinks, while marketed as being better for you than alcohol, come with their own risks.

“It’s important to remember that everything has the potential to be both toxic and safe, depending on the amounts. The dose makes the poison,” Joe Zagorski, a toxicologist for the Center of Research on Ingredient Safety at Michigan State University, told The Chicago Sun-Times.

“Since it’s difficult to determine the amount of specific compounds in many of these beverages, it’s better to proceed cautiously than to over-consume.”

Costco has moved into the mocktail space.

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Costco has dabbled in nonalcoholic cocktails before

The warehouse club has tested this type of beverage on a limited basis multiple times over the past few years. It offered Edna’s Non-Alcoholic Cocktail Co. drinks in 30 warehouses in Canada in 2025.

Costco actually stocked The Tinley Beverage Company’s Beckett’s non-alcoholic ready-to-drink cocktails in a very limited selection of its U.S. warehouses back in 2020.

“Beckett’s full line of ready-to-drink non-alcoholic cocktails will launch under Costco’s ‘Road Show’ program. Road shows typically bring pallet displays and brand ambassadors staged along high traffic aisles, and Beckett’s will be strategically placed in the wine & spirits department,” according to a press release.

More Retail:

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Road Shows are Costco’s largest initiative designed to introduce and drive sales of new products.

Costco did not end up expanding any of these offerings across the entire United States.

How Costco picks its merchandise

Costco is an “item business,” Bob Nelson, the chain’s senior vice president of financial planning and investor relations, told CNBC.

It’s looking for values to deliver its members.

“The definition of value for us is highest quality, lowest price and best member service,” he said.

Every item on its warehouse shelves is meant to be the best in its category. That means there are only between 3,700 and 3,800 items for sale per warehouse, Nelson said.

By comparison, a Walmart Supercenter sells 142,000 different items, according to Walmart’s website.

Costco has other standards for its merchandise as well.

“What we found differed at Costco relative to other retailers was a culture that valued operational excellence. For instance, buyers consistently take into account the operational costs incurred by warehouses in the form of labor. They work with vendors to deliver floor‐ready product to warehouses,” according to a report from ECR Retail Loss.

Related: Costco quietly reverses a decade-old food court decision