Enjoy complimentary customisation on priority with our Enterprise License!
The Low-Alcohol Beverages Market size is projected to increase by USD 332 million and the market size is estimated to grow at a CAGR of 4.54% between 2023 and 2028.
The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
Increasing health consciousness among consumers is notably driving market growth. The increasing health consciousness among consumers is one of the major drivers in the global market. companies promote the product as a safe and healthy option compared to conventional alcoholic drinks to attract health-conscious consumers. Conventional alcoholic beverages, such as regular beer with high ABV, are associated with several health issues, such as anemia, cancer, cardiovascular diseases, depression, high blood pressure, and nerve damage. Moreover, as more alcoholic beverage brands expand into low and no-alcohol offerings to leverage the trend toward health and wellness, which is greatly impacting the industry, innovations in low- and no-alcohol segments, including the rise of hard seltzers and RTD (ready-to-drink) cocktails are expected to drive the growth of the market during the forecast period.
The Market shows an Accelerated CAGR during the forecast period.
To get additional information about the market, Request a Free Sample
The rising adoption of online sales for alcoholic beverages is an emerging trend shaping the market growth. The rising adoption of online sales for alcoholic beverages is one of the major trends in the global market. E-commerce has become a popular tool for the sales and marketing activities of the alcoholic beverage industry. It has been considered the fastest-growing distribution channel for alcoholic beverage sales. Online sales have helped many smaller businesses that make craft cocktails, craft beers, craft spirits, and others to expose their products and brands to a greater number of consumers. In addition, the abundance of e-commerce shopping sites has brought consumers closer to their favorite brands.
Moreover, e-commerce websites contact brick-and-mortar retail stores across different regions to find the correct legal age for purchasing alcoholic beverages. Offers like free delivery, cashback incentives, bulk buying options, free shipping, and others are being introduced by companies to attract consumers. Thus, all the above factors are driving the growth of online sales for alcoholic beverages in the market during the forecast period.
The huge availability of substitute products is a significant challenge hindering market growth. The huge availability of substitute products is one of the major challenges in the global market. Alcoholic drinks, soft drinks, and energy drinks are the major substitutes. Conventional alcoholic beverages with high alcohol content have wide availability and serve the functional purpose of alcoholic drinks well. Other substitutes, such as soft drinks and energy drinks, also have wide availability and are considered healthier than alcoholic beverages, such as low-alcohol beer. However, the prices and the consumption levels of different alcoholic beverages, soft drinks, and energy drinks per individual are lower.
For instance, the normal consumption of any conventional wine can cost around USD 100 for an individual, while that of low-alcohol beer can cost around USD 150 to attain the functional purpose of the alcoholic drink. Besides, non-alcoholic beverages, such as soft drinks and energy drinks, are promoted on a large scale, which increases their popularity. Thus, the huge availability of substitute products such as alcoholic beverages, soft drinks, and energy drinks is hindering the growth of the market during the forecast period.
The low-alcohol beer segment is growing at a fast rate due to the popularity of conventional beer among consumers along with the health-associated trend, which is increasing the overall sales of the market. However, even with lower alcohol content in beer, consumers are searching for bolder flavours with an increasing volume of fermentable ingredients. Moreover, the global beer market, which also includes low-alcohol beer, has witnessed notable growth in the past five years. This growth is largely propelled by the increased availability of a wide variety of beers globally. Due to evolving consumer tastes and preferences, companies operating in the global beer market have constantly been launching new flavours and products to meet consumer demands. For instance, in September 2021, MillerCoors launched Coors Edge, a fruit-flavoured light beer with low calories, for emerging beer drinkers. These factors will positively impact the growth of the segment during the forecast period.
The market share growth by the off-trade segment will be significant during the forecast period. The off-trade segment is growing at a significant rate in the global market. The most common off-trade distribution channels are individual retailers, supermarkets, hypermarkets, and online platforms. These distribution channels allow consumers to choose from a diverse range. They offer cost advantages, as they do not have dining areas. Supermarkets and hypermarkets have dedicated sections for different brands.
The off-trade segment was the largest and was valued at USD 676.17 million in 2018
For a detailed summary of the market segments Request for Sample Report
Further, the online distribution channel allows companies to offer a considerable discount on different types directly to consumers, as it eliminates the costs associated with the operation of physical stores and physical merchandising. Although the on-trade distribution channel remains the key sales channel, off-trade distribution channels are predicted to witness rapid growth during the forecast period. Competitively priced offerings and quick delivery services are the major reasons for the growth of this segment. These factors are expected to drive the growth of the off-trade distribution segment of the market during the forecast period.
Europe is estimated to contribute 37% to the growth of the global market during the forecast period
Get a glance at the market share of various regions View the PDF Sample
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in Europe is expected to grow at a significant rate during the forecast period. Germany, Spain, and the UK are the key contributing countries to the market in the region. The high living standards increased the introduction of a different variety, and the strong brand value of the products offered in the market is expected to fuel the growth of the market in Europe. Companies operating in the European market offer their products in many variants and different price ranges. They are also focusing on strengthening their brand value, market position, and profitability by promoting their products and investing in the research and development (R&D).
In addition, the companies offering are continuously widening their product portfolio by launching products with different flavours through organized speciality retail stores and online platforms. For instance, AB InBev offers a wide variety of low-alcohol beers through both online and offline retail stores in Europe. Furthermore, the growing per capita consumption of alcohol in the region is also driving the demand in Europe. Therefore such factors are expected to drive the market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing substantial growth, driven by changing consumer preferences, particularly among young people and millennials. These demographics are increasingly adopting healthy drinking habits and embracing mindful drinking practices. Manufacturers are responding by introducing a variety of low-calorie alcohol beverages in the market, including lighter reds with citrus flavors.
Ready-to-drink segments are also experiencing a surge in demand, especially in emerging economies and developing countries, where social gatherings, sports events, and leisure activities often drive the consumption of such beverages. These products typically have lower alcohol-by-volume (ABV) levels, appealing to consumers looking for a more balanced drinking experience. Overall, the market is adapting to these changing trends, offering a wider range of options for consumers seeking lighter, healthier alternatives for various occasions.
Low-Alcohol Beverages Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.54% |
Market Growth 2024-2028 |
USD 332 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.7 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 37% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accolade Wines Australia Ltd., Allagash Brewing Co., Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bacardi Ltd., Beam Suntory Inc., Carlsberg Breweries AS, CODYs Drinks International GmbH, Constellation Brands Inc., Curious Elixirs, Diageo Plc, Heineken NV, Kirin Holdings Co. Ltd., Metabrand Corp., Molson Coors Beverage Co., New Belgium Brewing Co. Inc., Olvi Plc, Royal Unibrew AS, Sapporo Holdings Ltd., and The Boston Beer Co. Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
BUY NOW Full Report and Discover more
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.