The no and low-alcohol beverage market can no longer be ignored. As consumers become more focused on mindful drinking and living healthier lifestyles, the demand for non-alcohol options has grown and likely won’t be slowing down any time soon. Are we headed into a second, self-imposed Prohibition Era, or is something else going on? In this post, we’ll be looking at what exactly the no and low-alcohol market is, the market share for this industry, and other key statistics surrounding this growing trend.

What is the Low/No Alcohol Market?

The low and no alcohol market refers to the rising trend of beverages typically synonymous with alcohol content–beer, wine, cocktails–now produced with little to no alcohol percentage present. No alcohol beverages have an ABV below 0.05% while low alcohol content beverages tend to have anywhere from 0.05% to 1.2% ABV.

Many of these beverages have been crafted to closely resemble consumer favorites, like non-alcoholic IPAs or low-alcohol cocktails, while others stand out on their own. Kombucha has become a key player in the low and no-alcohol market, even to the point that many breweries offer their own proprietary kombucha alongside their beers.

What is the Market Size for Low and No Alcohol?

The low and no-alcohol industry reached an impressive global value of $22.5 billion in 2021. Compared to the $1,448.2 billion the alcohol industry generated in 2021, this may seem like a small number, but it signifies significant growth and shows that the low and no alcohol category is gaining a foothold within the industry worldwide.

The U.S. is a major influence on the no and low-alcohol growth and proves that this sector is one to watch. In the U.S., non-alcoholic sales reached almost $400 million in 2022, while low-alcohol sales reached nearly $3 billion. 

What is Influencing the Boom in this Market?

Though ‘Dry January’ has long been an unofficial tradition in the U.S., more and more consumers are reaching for no and low-alcohol beverages year-round. This trend is rooted in a desire to be more health-conscious and mindful of alcohol consumption–and millennial and gen z consumers are leading the way.

Companies have become savvy about this shift and adjusted their marketing strategies accordingly. What was once a market focused on consumers who could not drink alcohol, such as expecting mothers, recovering alcoholics, and more, has expanded to include a wider audience. No and low-alcohol brands have updated their packaging to more trendy designs and started advertising to consumers via social media.

5 Key Stats for the Low and No-Alcohol Market

We’ve analyzed some of the best reports on the low and no-alcohol industry and pulled out some of the most intriguing statistics surrounding this market.

1. No and Low-Alcohol Buyers are Also Buying Alcoholic Beverages

The rise of no and low-alcohol products does not have a negative impact on the well-established alcohol industry. In fact, according to Nielsen Research, 82% of low-alcohol buyers are still buying alcoholic beverages. Our takeaway? The rise in the no and low-alcohol industry signifies that consumers want options more than they want to replace alcoholic beverages altogether.

2. The U.S. is the Most Dynamic Market for Low and No-Alcohol Growth

In the U.S., low and no-alcohol sales have steadily increased and taken more and more of the beverage market share. From August 2021 to August 2022, non-alcoholic beverages reached $395 million in sales, a year-over-year growth of over 20%. While some countries like Germany were early adopters of the low and no-alcohol trend, the U.S. is proving to be a lucrative late-blooming market.

3. Low and No-Alcohol Spirits are Gaining Traction

Though still taking up a fraction of the market share at 1.3% of total sales, low and no-alcohol spirits are perhaps experiencing the most significant growth within the industry. Nielsen reports that no-alcohol spirits have grown 88% over the previous year, a huge jump compared to the steady 20% experienced by non-alcoholic wine and beer. 

4. Non-Alcoholic Beverages Outperform Low-Alcohol Counterparts

IWSR reports that non-alcoholic beverages are generally the consumer favorite. No-alcohol beer and cider take up around 75-80% of the total market share and show no signs of slowing down. The only exception is low-alcohol wine. Consumers prefer the taste of low-alcohol wine over non-alcoholic versions. IWSR expects the low-alcohol wine sector to grow about 20% CAGR by 2025, compared to a 9% CAGR for the non-alcoholic wine sector.

5. A Healthy Lifestyle is a Strong Motivator

The desire for a healthier lifestyle is a powerful reason why most consumers choose low and no-alcohol beverages. Nielsen reported 34% of surveyed consumers are drinking less because they want a healthier lifestyle. If this weren’t the case, consumers would simply reach for a soft drink. This should cause brands to be mindful of how they create these no/low options and what ingredients they use, focusing on the quality and health benefits of each beverage.

Final Thoughts

The low and no-alcohol category is one to watch. Whether you’ve begun offering low-alcohol options alongside your standard beer and wine or you’ve opened your own low-alcohol brand, you’ll need to stay vigilant as this trend takes off. The Grappos Product Locator not only shows consumers where they can find your low-alcohol offerings but also gathers valuable data you can use to increase your market share. Take advantage of the massive industry growth and get an advantage over your competitors with Grappos.

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