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The low-alcohol beverages market is estimated to grow at a CAGR of 4.1% between 2022 and 2027. The size of the market is forecast to increase by 6,204.25 million liters. The growth of the market depends on several factors, including increasing health consciousness among consumers, government reforms, and the growing global beer market.
This report extensively covers market segmentation by distribution channel (off-trade and on-trade), product (low-alcohol beer, low-alcohol wine, low-alcohol RTD, low-alcohol cider, and low-alcohol spirits), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global low-alcohol beverages market as a part of the global brewers market within the global food and beverages market. The global brewers market covers producers of beer, craft beer, and malt liquors, including breweries and craft breweries. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Increasing health consciousness among consumers is notably driving the market growth, although factors such as the huge availability of substitute products may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Low-Alcohol Beverages Market Driver
Increasing health consciousness among consumers is notably driving market growth. Today, consumers around the world are increasingly health conscious and prefer healthy and nutritious food and beverages. Traditional alcoholic beverages, such as regular high-pressure beer, have been linked to a number of health problems, including anemia, cancer, cardiovascular disease, depression, high blood pressure, and nerve damage. As a result, many consumers have begun to switch from traditional alcoholic beverages to light alcoholic beverages, which are healthier. In addition, the consumption of light alcoholic beverages is becoming one of the most desirable ways for consumers to reduce alcohol consumption in the long term. As a result, soft drinks are also popular among people recovering from alcohol addiction. All these factors are expected to drive the growth of the market during the forecast period.
Significant Low-Alcohol Beverages Market Trend
Increased consumption of low-alcoholic beverages among women is the key trend in the market. Globally, women's employment and financial and lifestyle independence are gradually increasing. Increasing urbanization has also accelerated the growth of female consumers in beverage service centers such as bars, pubs, and coffee shops. This leads to the consumption of different types of drinks, including low-alcohol drinks such as low-alcohol beer, low-alcohol wines, and low-alcohol ciders, which are very popular among the female population. This increase in the number of women consuming alcoholic beverages will increase the demand for low-alcohol beverages globally during the forecast period.
Major Low-Alcohol Beverages Market Challenge
The huge availability of substitute products is the major challenge impeding the market growth. Alcoholic beverages, soft drinks, and energy drinks are the most important substitutes for light alcoholic beverages. Traditional spirits are widely available and serve the functional purpose of spirits well. Other substitutes such as soft drinks and energy drinks are also widely available and are considered healthier than alcoholic beverages such as light beer.
In addition, the low cost of substitutes in relation to the level of per capita consumption is another advantage that increases the demand for substitutes. However, prices and per capita consumption levels of various alcoholic beverages, soft drinks, and energy drinks are low compared to soft drinks. For example, the normal consumption of all traditional wine can cost an individual about 100 USD, while the consumption of low-alcohol beer can cost about 150 USD to reach the functional goal of alcohol. In addition, non-alcoholic beverages such as soft drinks and energy drinks are widely marketed, increasing their popularity.
Key Low-Alcohol Beverages Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Low-Alcohol Beverages Market Customer Landscape
Vendors 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.
New Belgium Brewing Co. Inc. - The company offers low-alcohol beverages such as Fat Tire, Holiday Ale, and Voodoo Ranger IPA. Under the segment, the company offers a range of beers such as Fat Tire, Voodoo Ranger Imperial IPA, Beltane, and others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the off-trade segment will be significant during the forecast period. The most common sales channels for light alcoholic beverages are individual retailers, supermarkets, hypermarkets, and online platforms. These distribution channels allow consumers to choose from a variety of light alcoholic beverages. They offer the cost advantage of not having a dining room. Sales of soft alcoholic beverages through the foreign trade channel will increase during the forecast period due to the increasing number of soft alcoholic beverages offering their products through supermarkets and hypermarkets.
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The off-trade segment was valued at USD 12,633.03 million liters in 2017 and continued to grow until 2021. The increasing penetration of the internet and the increase in the number of online shoppers is also increasing the demand for soft drinks through online platforms. The increasing penetration of the Internet is expected to increase the online sales of various types of alcoholic beverages
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Europe is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The non-alcoholic beverage market in Europe is expected to grow steadily during the forecast period. Germany, Spain, and the United Kingdom are the most important market-promoting countries in the region. The European market is expected to grow more slowly due to the maturation and stagnation of non-alcoholic in the region. However, a high standard of living, adoption of various soft drinks, and strong brand value of the products in the market are expected to contribute to the growth of the soft drinks market in Europe.
The market in the region witnessed a downfall in sales, as distribution channels were closed due to the imposition of lockdowns by regulatory bodies to reduce the spread of COVID-19. However, lockdowns were lifted in some countries, wherein the firms, companies, and facilities needed to work under new norms and safety measures laid down by healthcare authorities and governments. Due to the relaxation of lockdowns in various countries in the region, the players in the market have started their operations. Therefore, the market in the region started to recover, and it is expected to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Distribution Channel (Off-trade and On-trade), Product (Low alcoholic beer, Low alcoholic wine, Low alcohol RTD, Low alcohol cider, and Low alcohol spirits), and Geography (Europe, North America, APAC, South America, and Middle East and Africa).
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Low-Alcohol Beverages Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.1% |
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Market growth 2023-2027 |
6,204.25 million L |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.2 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 37% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accolade Wines Australia Ltd., Allagash Brewing Co., Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bacardi Ltd., Beam Suntory Inc., Bells Brewery Inc., Carlsberg Breweries AS, CODYs Drinks International GmbH, Constellation Brands Inc., Curious Elixirs, Diageo Plc, Heineken NV, Kirin Holdings Co. Ltd., Molson Coors Beverage Co., New Belgium Brewing Co. Inc., Olvi Plc, Royal Unibrew AS, Sapporo USA Inc., and The Boston Beer Co. Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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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. |
We can help! Our analysts can customize this 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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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