From 2019 to 2023, the market for dealcoholized beverages experienced an annual growth of 8%. This upward trend is forecasted to persist, with projections indicating an annual increase of 7% for fully dealcoholized and 3% for partially dealcoholized products through to 2027. Consequently, the overall category is anticipated to expand by 6% per year. This was reported by the International Wine and Spirits Research (IWSR).
In 2023, the category grew by 5% in the top ten markets compared to the previous year. Fully dealcoholized products led the charge with a 7% increase, while partially dealcoholized items saw a 2% rise. According to IWSR, 17% of all consumers of dealcoholized beverages were newcomers, trying such drinks for the first time. For partially dealcoholized beverages, this figure was 16%.
Expected growth in saturated markets
Notably, the trend resonates strongly with younger demographics, especially in burgeoning markets like the USA and Canada. Here, the "No and Low" alcohol segment currently accounts for less than 2% of the alcoholic beverage market. Millennials represent the core consumer base globally. The sector's most significant growth was during the COVID-19 pandemic in 2020 and 2021. However, IWSR's Susie Goldspink anticipates continued robust growth in the upcoming years.
By 2027, dealcoholized beverages are projected to constitute approximately 4% of the total market share in the alcoholic and ex-alcoholic drink sector. This prediction is particularly relevant to the primary markets of Australia, Brazil, Canada, France, Germany, Japan, Spain, South Africa, the United Kingdom, and the USA, which collectively consume 70% of all dealcoholized beverages.
In markets like Germany and Spain, dealcoholized drinks have already surpassed 10% market share. Here, a modest annual growth of 2% is expected through 2027. The consumer base in these countries tends to be older, with a preference for consuming these beverages at home. In contrast, other countries exhibit more varied consumption patterns, including outdoor and social settings. The UK market is set for an 8% annual growth, partly influenced by new alcohol tax regulations.
(Partially) dealcoholized wines play a relatively small role in all this, with the category being dominated by non-alcoholic or low-alcohol beer or cider (total 72%). VM
