The global Low-Alcohol Beverages Market estimated at USD 1.41 billion in the year 2023, is projected to reach a revised size of USD 2.36 billion by 2033. This is expanding at a CAGR of 5.3% over the analysis period.
Young people's desire to adopt healthy drinking habits and the growing popularity of mindful drinking are predicted to fuel the growth of the low-alcohol beverage industry in the future.
Over the study period, increased knowledge of the harmful effects of high-alcohol beverages, as well as the quick substitution of low-alcohol beverages, could drive market growth.
There are several low-alcohol beverage flavors available to millennials that may boost market momentum as a result of a decline in alcoholic drink consumption.
Beverages with alcohol-by-volume (ABV) between 0.05% and 1.12% are classified as low-alcohol beverages. Low-alcohol drinks are experiencing rapid growth due to consumer preferences shifting towards healthier and more palatable drinks to maintain their health goals.
Consumers are increasingly seeking healthier, tastier, and innovative low-alcohol drinks that satisfy their health goals. To satisfy growing consumer demands, manufacturers are introducing updated products without altering their taste and mouthfeel.
Consequently, these factors have collectively contributed to driving the market growth.
Increasing investments by manufacturers in low-alcohol beverages to enhance their taste, variety, and quality have contributed to the market's growth.
In recent years, manufacturers have introduced a variety of low-calorie and fruit-flavored low-alcohol beverages that have attracted consumers' attention. For example, Molson Coors introduced Coors Edge, a 0.5% ABV beer to the USA market in September 2019.
Increasing consumer interest in health and wellness has been a major factor driving the low-alcohol beverages market in recent years.
In addition, the negative effects of alcohol consumption, including cardiovascular ailments and high blood pressure, have prompted consumers to opt for low-alcohol beverages, which has in turn led to market growth.
The relatively low market penetration in emerging economies is a major obstacle to market growth. Also, the established consumer base for alcoholic beverages in developing countries and a lack of awareness about such products have negatively impacted their growth.
| Attributes | Details |
|---|---|
| Low-alcohol Beverages Market Value (2023) | USD 1.41 billion |
| Low-alcohol Beverages Market Expected Value (2033) | USD 2.36 billion |
| Low-alcohol Beverages Market Projected CAGR (2023 to 2033) | 5.3% |
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The global low-alcohol beverages market expanded at 3.8% CAGR over the past 10 years. The market is expected to expand at a CAGR of close to 5.3% over the forthcoming decade. The low-alcohol beverages market witnessed massive growth in the last few years.
The demand for low-calorie alcohol beverages has increased among people due to various health issues and concerns regarding the consumption of alcohol. Various new products are being introduced by key players and excellent marketing strategies are being implemented to attract customers.
Short Term (2022 to 2025): Adults with extended stay-at-home schedules became more inclined to drink low-alcohol beverages. The pandemic sparked interest in low-alcohol cocktails for those used to hard liquor only. With the opening of the economy, social gatherings, sports and tournaments, and leisure events have also become more popular. This has boosted the demand for low-alcohol beverages.
Medium Term (2025 to 2028): The increasing number of low-alcoholic beverages in ready-to-drink segments is a key trend expected to attract investments because of the need to reduce the effects of alcohol on health.
Long Term (2028 to 2033): Stores are promoting updated light ranges and a variety of lighter reds as manufacturers invest in improving the quality, variety, and taste of low-alcohol beverages. Low-alcohol beers are also becoming more popular, including some with citrus flavors. Approximately half of the world's beverage market consists of less-alcoholic beverages.
| Attribute | Details |
|---|---|
| Historical CAGR (2016 to 2022) | 3.8% |
| Historical Market Value (2022) | USD 1.21 billion |
| Forecast CAGR | 5.3% |
A Growing Awareness of Health Among Consumers
The global population is becoming more health conscious, and consumers prefer healthy and nutritious foods and beverages. Traditional alcoholic beverages, such as regular high-pressure beer, have been linked to a variety of health problems, including anemia, cancer, heart disease, depression, high blood pressure, and nerve damage.
Due to this, many consumers are switching from traditional alcoholic beverages to light alcoholic beverages, which are healthier.
It is also becoming increasingly popular for consumers to reduce their alcohol consumption over the long term through the consumption of light alcoholic beverages. These factors are expected to drive the growth of the market during the forecast period.
During the study period, the low-alcohol beverage industry is expected to grow due to the growing popularity of mindful drinking and a desire among young people to adopt healthy drinking habits.
For example, in the first half of 2019, Carlsberg reported that sales of their no-alcohol beers jumped by 16%, and Heineken noted that their 'Low & No-Alcohol' volumes increased from 6.3 to 6.9 million hectolitres.
During the study period, the market growth could be fueled by a comprehensive understanding of high-alcohol beverages' detrimental effects and their quick substitution for low-alcohol beverages. As millennials become less inclined to consume alcoholic drinks and demand for sparkling seltzers increases, market momentum could be boosted.
Rise in Demand for Glass-bottled Cocktails
A rise in glass-bottled cocktails has led to a significant increase in the consumption of low-alcohol beverages. For example, there has been an increase in demand for low-alcohol beverage aperitif-style drinks, such as spritzes and sours, which are typically served in glass bottles.
In several key regions, low-alcohol beers have taken up a substantial amount of shelf space in supermarkets and specialty stores, giving consumers more choices. Young adults are increasingly enjoying mocktails.
Traditional alcoholic beverages, on the other hand, haven’t lost their luster. Moreover, most people get attracted to the packaging style. Companies are constantly implementing innovative packaging styles along with effective marketing strategies to market their products.
For instance, many establishments are now offering lower-proof drinks such as spritzes and low-alcohol cocktails to provide an alternative to traditional high-alcohol content cocktails.
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Across the globe, women are steadily gaining employment, financial independence, and lifestyle independence. The rapid growth of female consumers in beverage service centers, including bars, pubs, and coffee shops, has also been accelerated by urbanization.
As a consequence, women consume a wide range of drinks, including low-alcohol beers, low-alcohol wines, and low-alcohol ciders, which are very popular among them. Low-alcohol beverages will be in high demand worldwide during the forecast period due to this increase in women drinking alcoholic beverages.
For example, 45% of female drinkers cited wine as their preferred beverage.
Traditionally, light alcoholic beverages have been replaced with alcoholic beverages, soft drinks, and energy drinks. Traditional spirits are widely accessible and fulfill their functional purposes well. There are also numerous substitutes for alcoholic beverages, such as light beer, soft drinks, and energy drinks.
Furthermore, substitutes are less expensive than soft drinks when compared with the level of per capita consumption, which increases their demand. However, alcoholic beverages, soft drinks, and energy drinks have relatively low prices and per capita consumption levels compared with soft drinks.
To attain the functional goal of alcohol, for example, it will cost approximately USD 100 for an individual to consume all traditional wine, while it will cost about USD 150 to consume low-alcohol beer. Moreover, non-alcoholic beverages like soft drinks and energy drinks are widely marketed, increasing their popularity.
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Based on type, the market is segmented into low-alcohol beer, low-alcohol wine, low-alcohol spirits, low-alcohol RTD, and low-alcohol ciders. The low-alcohol ready-to-drink (RTD) segment holds the largest share of the market's growth and is projected to experience a surge of 1.9% CAGR.
For example, in order to meet the changing needs of consumers, some manufacturers are introducing RTD cocktails with natural ingredients and low sugar levels.
The manufacturer may broaden the market and increase market prospects by increasing research and development to uncover sustainability challenges.
As consumers become more aware of beverages and the younger generation becomes more prevalent, many manufacturers are developing consumer products with various flavors and adopting appropriate marketing strategies, such as attractive packaging.
Low-alcohol beer, one of the segments examined in the report, is projected to record a 2.7% CAGR and reach 16.7 billion liters by the end of the analysis period. Growth in the low-alcohol wine segment, however, is readjusted to a revised 2.2% CAGR.
In the market, distribution channels include hypermarkets/supermarkets, convenience stores, specialty stores, and online retail. Hypermarkets/supermarkets hold the largest slice of the market because of easy shopping experiences for consumers and the adoption of advanced technologies.
Supermarkets/hypermarkets provide a better shopping experience. As they offer a wide range of products from several global brands under one roof and allow shoppers to physically inspect the products.
A number of large supermarkets, including Target, Aldi, Walmart, and Whole Foods, are expanding their low-alcohol product offerings. Taking into account the surging demand for low-alcohol wines, beers, and spirits from global consumers.
Due to the availability of numerous product variants in various price ranges and brands, hypermarkets and supermarkets are the major distribution channels for low-alcohol beverages.
Additionally, these mass merchandisers have helped increase the number of sales by offering a wide range of products. For instance, Woolworths announced in July 2021 that it would expand its low-alcohol wine, beer, and spirits offerings.
As online retailers offer an enhanced digitalized purchasing experience along with numerous discounts on product prices, they are expected to experience rapid growth.
Several untapped markets, increasing consumer disposable income, and a large population are responsible for the growth of the Asia Pacific low-alcohol beverage market. As a result of the availability of cheap labor and raw materials, the region is heavily consolidated with several emerging economies like India, China, Malaysia, and Indonesia.
These countries are also attracting global players to operate their businesses in the region due to government initiatives and efforts to support the low-alcohol beverages market. It is estimated that the Asian-Pacific market will reach 4.9 billion Liters by 2033, led by countries such as Australia, India, and South Korea.
The United States dominates the North American low-alcohol beverages market with a total share of 54% in 2023 and is projected to continue exhibiting high demand.
The United States low-alcohol beverage market is estimated to grow at a CAGR of 2% and is projected to surpass the market size of 8.1 billion liters in 2023. In the United States, developed economies are prominent and advanced technologies and innovative manufacturing methods were adopted early.
Consumers are becoming increasingly aware of the health risks associated with the high consumption of alcoholic beverages. Also, the demand for flavored and low-alcohol hard seltzers increases in the United States, beverage manufacturers may be able to take advantage of lucrative growth opportunities.
Germany dominates the Europe low-alcohol beverages market, with a share of 30%. The German low-alcohol beverages market is estimated to grow at a CAGR of 1.8%.
Since consumers are demanding alternatives to traditional alcoholic beverages, Germany is experiencing significant growth in the market. In the last few years, the demand for low-alcohol beverages has increased as consumers opt to lower their alcohol intake. This has positively impacted the regional market.
A total of 79% of the market share for low-alcohol beverages in Europe may be held by Germany and Spain in 2023. In addition to healthier trends, creative marketing strategies, and the development of more new products are driving these markets.
China holds a 50% share of the Asia Pacific market. China is expected to witness steady growth of 3.8% in the market for low-alcohol beverages in the forecast period.
In emerging economies like China, disposable incomes are rising and urbanization is rapidly taking place, which explains this increase in consumer demand.
Considering the growing health awareness among consumers and the large customer base in the Asia Pacific region, China is expected to grow rapidly in the market. In addition, beverage manufacturers in the region are introducing zero-alcohol and low-alcohol beverages to meet consumer demand for low-calorie, low-sugar, and healthier beverages.
The new market players for low-alcohol beverages are focused on consolidating their supply chain. Top players are expanding their geographical footprint in this regard. Family-owned vineyards produce a variety of flavors and textures.
A few brands with an established presence in hard liqueurs are growing their footprint by launching light variants. Home-grown brands have benefitted from the expanding menu of low-alcohol beverage sections in bars in recent months in developing and developed regions.
Some of the key players that are responsible for boosting the market share for low-alcohol beverages include Diageo PLC, United Breweries Group, Accolade Wines, and Bacardi Limited.
To keep up with the market trends for low-alcohol beverages, brand-new products featuring a dash of innovation are being developed. Companies are trying to stay on top of the low-alcohol beverage market by creating new products.
For example, the Canadian brewery, Big Rock, recently released a limited-edition series of low-alcohol beer in cans designed to look like tallboys, which have quickly become popular among consumers.
Moreover, many beer companies are now using cans instead of bottles to reduce manufacturing costs and attract a young consumer base.
Market players employ various strategies to enhance their presence in the market, including strategic alliances, partnerships, mergers, acquisitions, and geographical expansion.
New Belgium Brewing Co. Inc- The company produces low-alcohol beverages such as Fat Tire, Holiday Ale, and Voodoo Ranger IPA. Under the beer segment, it offers Fat Tire, Voodoo Ranger Imperial IPA, Beltane, and more.
Some of the major players supplying low-alcohol beverages are-
Recent Development:
Key players are focusing on novel and innovative approaches for the development of new products. The strategy of expansion, new product launches, and approvals, by key manufacturers, is further strengthening their market presence and staying ahead of the competition.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; The Middle East and Africa; East Asia |
| Key Countries Covered | The USA, Canada, Brazil, Mexico, Chile, Peru, Germany, UK, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Turkey |
| Key Segments Covered | Type, Distribution Channel, Region |
| Key Companies Profiled | Accolade Wines Australia Ltd.; Allagash Brewing Co.; Anheuser Busch InBev SA NV; Asahi Group Holdings Ltd.; Bacardi Ltd.; Beam Suntory Inc.; Bells Brewery Inc.; Carlsberg Breweries AS; CODYs Drinks International GmbH; Constellation Brands Inc.; Curious Elixirs; Diageo Plc; Heineken NV; Kirin Holdings Co. Ltd.; Molson Coors Beverage Co. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market is valued at USD 1.41 billion in 2023.
The market is estimated to secure a valuation of USD 2.36 billion in 2033.
Through 2033, the market is projected to continue to expand at a CAGR of 5.3%.
An upsurge in CAGR of 1.9% is anticipated for the low-alcohol ready-to-drink sector.
The German low-alcohol beverage market may strengthen at a CAGR of 1.8%.
The market in the United States to steadily record a CAGR of 2%.
1. Executive Summary | Low-alcohol Beverages Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Types 5.1. Low-Alcohol Beer 5.2. Low-Alcohol Wine 5.3. Low-Alcohol RTD 5.4. Low-Alcohol Cider 5.5. Low-Alcohol Spirits 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 6.1. Hypermarkets/Supermarkets 6.2. Convenience Stores 6.3. Specialty Stores 6.4. Online Retail 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. Middle East & Africa (MEA) 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. Accolade Wines Australia Ltd. 15.2. Allagash Brewing Co. 15.3. Anheuser Busch InBev SA NV 15.4. Asahi Group Holdings Ltd. 15.5. Bacardi Ltd. 15.6. Beam Suntory Inc. 15.7. Bells Brewery Inc. 15.8. Carlsberg Breweries AS 15.9. CODYs Drinks International GmbH 15.10. Constellation Brands Inc. 15.11. Curious Elixirs 15.12. Diageo Plc 15.13. Heineken NV 15.14. Kirin Holdings Co. Ltd. 15.15. Molson Coors Beverage Co. 16. Assumptions & Acronyms Used 17. Research Methodology
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Low-alcohol Beverages Market
