08 Apr Is No or Low Alcohol The Way To Go?
There is no doubt that major shifts are underway with regards to wine consumption across the globe. In five years, the amount of Gen Zs of legal drinking age will double in size but will be drinking less than former generations.
Compounding this is the fact that across all demographics consumers are increasingly mindful of their drinking habits due to a myriad of factors such as an increased focus on health and wellness and cost of living concerns.
All these factors have contributed to, and will continue to contribute to, a decline in wine consumption across most established markets. However, two wine categories that have been growing are no and lower alcohol wines:
According to recent research in the five years to 2023, the consumption of no alcohol wines has increased by 13% per annum to reach 4.5 million cases and low alcohol has increased by 21% per annum to 3.3 million cases. In comparison, consumption of still wine declined by 3% per annum to 2 billion cases over the same period.
The research also predicts that consumption of low alcohol wines will overtake no alcohol wines by 2028, as the low alcohol category is anticipated to grow by 14% per annum versus 7% for no alcohol. Still wine consumption is forecast to continue to decline but at a lower rate of 1% per annum.
The global consumption of no-alcohol and low-alcohol wine is forecast to grow strongly in the next five years, albeit off a small base. The United States is to date the largest market for both these categories, with Australia also a significant market, particularly for low-alcohol wines.
Outside of the United States and Australia, the growth is coming from established markets in Europe. There is very little presence of no-alcohol and low-alcohol wines in emerging markets, especially in Asia:
- Top 5 low alcohol markets: USA, Australia, UK, Germany, Finland, Other
- Top 5 no alcohol markets: USA, UK, France, Germany, Australia, Other
The growth of these two categories is likely to continue to develop over time as consumers, especially younger demographics, continue to moderate alcohol consumption and seek lower or no alcohol beverage alternatives.
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