Non-Alcoholic Wine and Beer Market Size - By Product (Beer, Wine), Material, Type, Technology, Sales Stores, Regional Outlook, Growth Potential, Competitive Market Share & Global Forecast, 2023 – 2032

Non-Alcoholic Wine and Beer Market Size

Non-Alcoholic Wine and Beer Market size is estimated to record a CAGR of over 7% between 2023 and 2032. There is a paradigm shift towards healthier lifestyle, with an increasing number of consumers opting for non-alcoholic alternatives. The growing awareness of the health risks associated with excessive alcohol consumption is prompting individuals to seek alcohol-free options that offer a similar sensory experience without the negative health impacts. According to a report from the World Economic Forum, 65% of consumers prioritize ethical spending as a means to foster a lifestyle centered around health and sustainability.
 

Another significant driver is the expansion of non-alcoholic beverage options and the continual innovation in product development leading to increased preference amongst consumers. As per findings from KAM Media in 2021, 46% of individuals opted for low or non-alcoholic beverages at bars, pubs, or restaurants instead of an alcoholic drink. With a focus on taste and quality, beverage manufacturers are investing in creating sophisticated non-alcoholic wine and beer options that appeal to a diverse consumer base. This experimentation involves replicating the complex flavors and aromas traditionally associated with alcoholic beverages, making non-alcoholic alternatives more attractive to a broader audience.
 

A significant challenge is the need to match the complex flavors and textures found in traditional alcoholic beverages, which can be a demanding task for manufacturers. Additionally, there is a lingering perception among consumers that non-alcoholic options have compromised taste. The limited variety and availability of high-quality non-alcoholic alternatives also pose hurdles to widespread adoption, restraining the market growth. Overcoming these challenges requires continued innovation and effective marketing strategies by industry players to reshape consumer perceptions.
 

COVID-19 Impact

Non-alcoholic wine and beer market experienced a notable impact from the COVID-19 pandemic. With lockdowns and social restrictions affecting the hospitality sector, there was a temporary decline in on-premise consumption. However, the pandemic also accelerated the existing trend of health-conscious consumer choices. As individuals became more mindful of their well-being, the demand for non-alcoholic alternatives surged. There has been an increased interest in alcohol-free options, reflecting a broader shift in consumer preferences toward healthier lifestyles and a heightened awareness of the importance of alcohol moderation, favoring the industry outlook.
 

Non-Alcoholic Wine and Beer Market Trends

In a survey conducted by Consumer & Coefficient Capital in 2023, encompassing over 3000 U.S. consumers, it was revealed that 22% of adults aged 21 years and above intend to reduce their alcohol consumption in the coming year. Looking at this trend, manufacturers are investing in creating non-alcoholic alternatives that mirror the diverse and complex flavors of conventional alcoholic beverages, catering to consumer demands for an authentic drinking experience without the alcohol content. The commitment to providing high-quality and sophisticated options to appeal to a broad consumer base will shape the non-alcoholic wine and beer market dynamics.
 

Another noteworthy trend is the strategic partnerships and collaborations within the industry. Key players are forming alliances with breweries, wineries, and other beverage companies to expand their product portfolios. These partnerships facilitate the sharing of expertise, technology, and resources, fostering innovation in the non-alcoholic beverage space. Investment scenario is also showing an uptick.
 

According to an article by Hubspot, in 2022, Heineken 0.0 demonstrated promising product penetration, constituting 5% of UK portfolio, an even more impressive 7% in Spain, and a remarkable 20% in Russia. The company marked the sale of 13.1 million hectoliters of low to non-alcoholic beer last year. As consumer preferences continue to evolve, these collaborations offer a broader range of appealing choices in the growing market.
 

Non-Alcoholic Wine and Beer Market Analysis

Wine segment is anticipated to grow at a CAGR of over 7% through 2032, owing to the product alignment with health and wellness, along with availability of diverse options.
 

• Non-alcoholic wine serves to varied consumer preferences. It attracts wine enthusiasts looking for alcohol-free options, as well as individuals exploring healthier beverage choices.
   
• The product aligns with the broader health and wellness trend, as non-alcoholic wine provides a flavorful and sophisticated alternative with benefits such as reduced stress levels, lower diabetes & cancer risk, and improved heart health.
   

The non-alcoholic wine and beer market from lower alcohol segment is expected to witness gains at over 8.5% till 2032, as consumers focus on moderation in alcohol consumption.
 

• The breweries and vineyards are creating a spectrum of options, allowing consumers to choose beverages with alcohol content tailored to their preferences.
   
• Individuals, increasingly health-conscious, are opting for beverages with lower alcohol content, leading to a shift in drinking habits.
   

Restricted fermentation is poised to observe 6.5% CAGR during the forecast period, favored by the global acceptance of non-alcoholic beverages.
 

• The impact of restricted fermentation is evident in the competitive positioning of non-alcoholic beer brands. The brands are successfully replicating beer characteristics through this process, gaining a competitive edge in non-alcoholic beverage sector.
   
• The technology aligns with changing consumer preferences worldwide. It contributes to the global acceptance and popularity of non-alcoholic beer, adding to product demand.
   

The non-alcoholic wine & beer market share from online store segment will record 7.5% CAGR during 2023 to 2032, the presence of wider product variety on these platforms, along with easy accessibility & convenience.
 

• Online stores facilitate direct-to-consumer sales, allowing brands to establish a closer relationship with the customers. This enables brands to understand consumer preferences, gather feedback, and tailor their offerings to meet evolving demands.
   
• These platforms provide a space for a multitude of brands and variants, offering consumers a wider selection of non-alcoholic wine and beer than traditional brick-and-mortar stores.
   

Asia Pacific non-alcoholic wine and beer market will register a CAGR of over 7% from 2023 to 2032, backed by a rising health-consciousness in population and changing consumer preferences. Countries like India and China are witnessing cultural shifts, that along with increasing disposable incomes is pushing the product demand. Regulatory support and a growing awareness of wellness associated with beers and wines will drive innovation and product development, making the APAC a conducive market for the players.
 

Non-Alcoholic Wine and Beer Market Share

Heineken N.V. has strategically positioned itself in the non-alcoholic wine and beer industry through innovative growth strategies. The company focuses on product diversification, introducing alcohol-free alternatives like Heineken 0.0 to cater to the expanding demand for non-alcoholic beverages. Additionally, it prioritizes marketing and brand promotion to create awareness and reshape consumer perceptions of non-alcoholic options. Collaborations with influencers and leveraging digital platforms contribute to the wider visibility. The company's commitment to sustainability, evident in its zero-alcohol products, resonates with environmentally conscious consumers. Similar strategies are being devised by other prominent industry players, namely:

• Anheuser-Busch InBev
• Carlton & United Breweries (CUB)
• E. & J. Gallo Winery
• Ariel Vineyards
• Seedlip
• Lindemans Wines
   

Non-Alcoholic Wine and Beer Industry News

• In July 2023, AB InBev invested €31 million for technology upgrade in Belgium breweries to boost non-alcoholic beer production and improve bottling capabilities, reflecting the company's commitment to innovation and meeting consumer demand.
   
• In May 2023, Heineken NV announced an investment of 1.5 billion reais ($300.8 million) in Brazil, focusing on expanding its premium and single malt beer portfolios.
   

The non-alcoholic wine & beer market research report include in-depth coverage of the industry with estimates & forecast in terms of volume in million kilo tons & revenue in USD billion from 2018 to 2032 for the following segments:

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Market, By product

• Beer
• Wine

By Type

• Alcohol Free [0.0% ABV]
• Lower Alcohol [0.0% - 1.5% ABV]
• Lower Alcohol [1.5% - 3.5% ABV]

By Technology

• Restricted Fermentation
• Dealcoholization

By Sales Store

• Liquor Stores
• Convenience Stores
• Supermarkets
• Online Stores
• Restaurants & Bar

By Wine

• Grapes
• Berries/ Apples
•  Malted Grains
• Hops
• Yeast
• Enzymes

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE