Enjoy complimentary customisation on priority with our Enterprise License!
The Low-Alcohol Beverages Market size is projected to increase by USD 332 million, at a CAGR of 4.54% between 2023 and 2028. The market's evolution is influenced by several factors, including a rising health consciousness among consumers, government reforms, and a surge in beer consumption.
Increasing health consciousness drives demand for healthier food and beverage options, prompting manufacturers to innovate and offer more nutritious products. Concurrently, government reforms aimed at improving public health policies and regulations impact the industry landscape, shaping consumer behavior and market dynamics. Additionally, the rise in beer consumption reflects changing preferences and lifestyle trends, driving growth in the beverage sector. These intertwined factors underscore the need for industry players to adapt to evolving consumer preferences, navigate regulatory changes, and capitalize on emerging opportunities to remain competitive in the market. 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.
The Low-Alcohol Beverages Market Size Report shows an Accelerated CAGR during the forecast period.
To get additional information about the market, Request a Free Sample
In response to evolving consumer preferences, the global low-alcohol beverages market size witnesses a surge in demand for fruit-flavored options, offering a healthy alternative with lower alcohol-by-volume (ABV). Quality and variety are paramount, with industry leaders like Molson Coors introducing innovative products like Coors Edge to cater to health-conscious Millennials. Hypermarkets and supermarkets play a crucial role in distributing these beverages, reflecting the growing investments in the low alcohol beverage market. With a focus on taste, mouthfeel, and health goals, consumers embrace mindful drinking, seeking nutritious options without compromising on flavor, quality, or creativity.
Increasing health consciousness among consumers is notably driving Low-Alcohol Beverages 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 low-alcohol beverages market size during the forecast period.
The rising adoption of online sales for alcoholic beverages is an emerging trend shaping Low-Alcohol Beverages 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 low-alcohol beverages market industry analysis during the forecast period.
The huge availability of substitute products is a significant challenge hindering Low-Alcohol Beverages 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 low-alcohol beverages market forecast report 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.
For a detailed summary of the market segments Request for Sample Low-Alcohol Beverages Market Size Analysis Report
The off-trade segment was the largest and was valued at USD 676.17 million in 2018. 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 low-alcohol beverages market size analysis growth report 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 Low-Alcohol Beverages Market PDF Sample
Technavio’s analysts have elaborately explained the regional low-alcohol beverages market 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 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 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 low-alcohol beverages market size analysis report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative low-alcohol beverages market size 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 Low-Alcohol Beverages market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in USD Million for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is experiencing a significant uptick driven by a growing demand for healthy drinking habits and low-calorie options among young consumers. With an emphasis on high-quality and appealing flavors, such as fruit flavoured varieties like Cosmopolitan and Mojito, these beverages offer a refreshing alternative to traditional alcoholic drinks. Catering to customer preferences for taste and mouthfeel, the industry is innovating with Nolo drinks — product quality that provide a calming flavor without the heavy effects of alcohol consumption. As rising use becomes more prevalent, even beer implants are emerging as a novel addition to the market, packaged conveniently in cans to meet the demands of modern consumers.
Further, driven by a growing concern for cardiovascular ailments and a desire for healthier lifestyles, the market for low alcohol beverages is witnessing a surge, especially in emerging economies. Consumers, particularly young people and women, are gravitating towards healthy products that offer the taste, variety, and quality they desire without the negative health effects of heavy alcohol consumption. The low-alcohol beverage industry is responding with a creative array of options, including fruit flavored drinks, cocktail mixes, and British craft beer alternatives. With the rise of online shopping platforms and low entry hurdles, these calming flavored drinks are becoming increasingly accessible, catering to the evolving preferences of adults seeking better lifestyles.
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 |
Low-alcohol beverages market size analysis, Market Forecasting, Low-Alcohol Beverages Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Low-Alcohol Beverages market worth and condition analysis for the forecast period. |
Customization purview |
If our Low-Alcohol Beverages market 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 Low-Alcohol Beverages Market Size Analysis Report and Discover more
We can help! Our analysts can customize this Low-Alcohol Beverages Market Research Analysis Report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
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.