Zero-alc wine isn’t new. At the beginning of the 20th century, Dr Carl Jung, son of a Rheingau winemaker, came up with a way of removing alcohol from a finished wine. Since then, increasingly sophisticated technology has been developed, and the range of non-alcoholic beverages has exploded. Most professionals would agree that beers and vermouth-style drinks have been most successful, followed by the recent arrival of non-alcoholic gins. Wine – especially still wine and more particularly red - has proved more challenging. Some producers have reacted by creating wine-like non-alcoholic beverages using ingredients including grape juice, tea and vinegar. Others are going even further, making drinks that offer a ‘buzz’ with none of the negative effects associated with alcohol.

What is the future of these drinks? How will they be distributed and who will buy them? These are questions that will be addressed at a ProWein World of Zero panel on Sunday19 MARCH 2023 (hall 1 A10).

Background

• While ‘No- and low-alcohol’ is often treated as a single category, most now see ‘no’ and ‘low’ as separate.
• The picture is further complicated by different interpretations being placed on ‘low alcohol’ ranging from 0.5%-1.2% to ‘under 11%’; and on ‘no-alcohol’ ranging from 0% to 0.5%. The OIV is currently discussing this last issue.
• The dealcoholized no-alcohol wine category now also faces competition from beverages sold in wine bottles and made from blends that may including water, grape juice, tea, other fruit juices and vegetable glycerine & functional ingredients as hemp, cannabinoids, electrolytes, adaptogens (Ashwagandha, ginseng).
• Some of these, such as Kylie 0% Rosé, have been commercially very successful, while the Canadian brand, Proxies is served in top US restaurants such as the French Laundry.

• No-alcohol is growing faster than low-alcohol in most markets.
• No-alcohol volumes grew 9% in 2022, increasing their share of the overall no/low-alcohol space in the world’s 10 leading no/low markets to 70%, up from 65% in 2018.
• IWSR expects no-alcohol volumes to grow at a compound annual growth rate (CAGR) of +9% between 2022 and 2026.
• Low-alcohol is expected to grow at a 2% volume CAGR, 2022-26, with much growth driven by the low-alcohol beer and wine categories.

Important Markets

• The world’s most valuable no/low-alcohol markets are Germany, Japan, Spain, the US, the UK and Scandinavia.
• The UK is one of the most dynamic no/low markets, with new product launches continuing apace and growth forecasts outstripping many other countries.

Consumer Perspective

• 78% of consumers of no/low products also drink full-strength alcohol.
• The largest subset (41% of no/low consumers) are classified as ‘substituters’, who choose no/low products when avoiding alcohol on certain occasions.
• Recent recruits to no-alcohol are more likely to be drinking more frequently, suggesting they are motivated by lifestyle rather than necessity; growth is driven both by recruitment of new consumers and greater participation.
• Brand extensions are providing familiarity and reassurance to new consumers. But with stable category growth and large volumes, dedicated no/low brands are strong performers and raise quality perceptions.
• A lot of innovation is focused on functionality: products which are claiming to provide an added benefit, such as the feeling of winding down, added vitamins, etc.

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