There are professional cuddlers that you can hire for, non-sexual, cuddles.
Why isn't it something that friends engage in, like animal counterparts? I mean, it seems like an artificial cultural norm we've set upon ourselves -- The idea of no extended touching unless with a sexual partner is one that exists only in my mind, but it's certainly not what my body wants.
For me having an emotional connection with someone (e.g. long term friends who have gone through struggles together, or people I haven't known for long but we've done something out of compassion for each other) is a prerequisite for touch to be desirable. I'm averse to being touched by a bunch of strangers and people I don't know well, especially in a group setting where I know everyone to different levels. I have a more cat-like personality than a dog-like personality in that regard.
(I think a lot of people take MDMA in order to be able to enjoy being touched by a bunch of strangers if they normally wouldn't, and it seems to be effective, but I haven't tried it myself, and although the risks are relatively low, they're far from insignificant.)