Dealcoholized wine has been around for some time—the first patents date back to the early 20th century—but the recent moderation trend has driven rapid growth for the no- and low-alcohol wine market. According to consumer research firm IWSR, the percentage of American drinkers who consume non-alcoholic beverages more than doubled last year, rising from six to 13 percent. This growth was largely driven by millennials and Gen Z, who now make up 45 and 17 percent of the category’s consumers, respectively.
“The no- and low-alcohol wine market is poised for significant growth as consumer preferences shift toward more mindful drinking and wellness-focused lifestyles,” says Elena Lottici, the export manager at Italian wine producer Riunite. “Over the next few years, we expect this category to expand its appeal across a diverse audience, driven by innovation and increasing demand for options that combine great taste with moderation.”
While past developments in the category were largely driven by new product releases, the past year has seen the wider wine sector more decisively embrace the segment. This shift is reflected in significant investments in new production facilities—particularly in France—as well as groundbreaking regulatory changes. These include the upcoming launch of the first low-alcohol wines with geographical indication (GI) and permission for dealcoholization to take place within Italian wineries.
Building on this momentum, the coming months are set to mark a breakthrough for the market, with France and Italy poised to take on increasingly pivotal roles on the international stage. “In Europe,” says Lottici, “countries with strong wine traditions, such as Italy, Spain, and France, are well positioned to lead the way in this space.”
New developments in Europe
While Germany has long been a world leader in no- and low-alcohol wine production, France has recently moved to the forefront of the category. Last spring, a sizable dealcoholization facility, Le Chai Sobre, opened in the Gers department of southwestern France. The plant boasts an annual capacity of 50,000 hectoliters (around 6.6 million bottles—approximately a third of the production of Germany’s Carl Jung, the world’s oldest and one of the leading non-alcoholic wine producers). It will produce its co-owner’s brand, Moderato, and provide dealcoholization services for other producers seeking to enter this expanding market.
Bordeaux has also seen a surge of activity in the segment. Following products launched by the likes of Laurent David of the collective Bordeaux Pirate, and Coralie de Boüard—the daughter of Hubert de Boüard of Château Angélus fame—local co-op Bordeaux Families installed its own $2.36 million dealcoholization facility, too. The firm is now working to bring the fruits of this investment to market, aiming to have the segment account for 10 to 12 percent of its total annual production of 300,000 hectoliters by the year’s end.
In Italy, trade associations and the government recently approved a decree allowing Italian wineries to produce dealcoholized wine within the country (although it’s yet to be signed by the ministry of agriculture). By moving production onto Italian soil, the country is also poised to play a much larger role in the global market for dealcoholized wines.
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