Driven by increasing consumer demand, no- and low-alcohol beer/cider, wine, spirits, and ready-to-drink (RTD) products grew by more than +7% in volume across 10 key global markets in 2022. The pace of growth is expected to surpass that of the last 4 years, with forecast volume CAGR of +7%, 2022-26, compared to +5%, 2018-22. No-alcohol will spearhead this growth, expected to account for over 90% of the forecast total category volume growth.
Among the 10 focus markets examined in the December 2022 release of the IWSR No- and Low-Alcohol Strategic Study (Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, the United Kingdom, and the United States), the market value of no/low alcohol products in 2022 surpassed $11billion, up from $8 billion in 2018.
“The dynamic no/low-alcohol category presents opportunities for incremental sales growth as consumers are recruited from drinks categories such as soft drinks and water. Brand owners have an opportunity to recruit non-drinkers of alcohol,” comments Susie Goldspink, Head of No- and Low-Alcohol, IWSR Drinks Market Analysis. “As more people opt to avoid alcohol on certain occasions – or abstain from it altogether – no-alcohol is steadily increasing its share of the no/low category.”
No-alcohol products spearhead overall category growth
No-alcohol volumes grew 9% in 2022, increasing their share of the overall no/low-alcohol space in the world’s 10 leading no/low markets to 70%, up from 65% in 2018. “No-alcohol is growing faster than low-alcohol in most markets,” says Goldspink. “The countries where this does not apply, such as Japan and Brazil, are early-stage low-alcohol markets with a small volume base.”
Improved taste, production techniques, and a diversification of consumption occasions, are driving no-alcohol’s dominance over low-alcohol in many markets. IWSR expects no-alcohol volumes to grow at a compound annual growth rate (CAGR) of +9% between 2022 and 2026.
Germany remains world’s largest no/low-alcohol market; others show more dynamic growth
The maturity of the no/low-alcohol category varies widely by market. Germany, the world’s largest and most mature no/low-alcohol market, will see relatively slow growth due to beer market maturity and lack of innovation.
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