Value of no- and low-alcohol category surpasses US$11 billion in 2022
Consumption of no- and low-alcohol drinks is set to increase by a third by 2026, spurred on by growing consumer demand, new research has found.
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, according to a new study published by IWSR Drinks Market Analysis.
The pace of the category’s growth over the next four years is also expected to surpass the growth experienced over the last four year period. Volume CAGR is forecast at 7% between 2022 and 2026, compared to +5%, 2018-22.
Non alcoholic products are set to spearhead this growth, and are expected to account for over 90% of the forecast total category volume growth.
“The dynamic no- and 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,” Susie Goldspink, head of no- and low-alcohol, IWSR Drinks Market Analysis, said of the new research.
“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 and low category.”
Among the 10 focus markets examined by the IWSR Drinks Market Analysis in December 2022, the market value of no- and low-alcohol products in 2022 has surpassed $11 billion, up from $8 billion in 2018.
Germany remains the world’s largest market for the category, followed by Japan, Spain, the US, and the UK. Meanwhile, more dynamic growth will come from markets including Australia, Canada and the US, which will all see double digit volume compound annual growth rates over the next four years.