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CATEGORY BREAKDOWN

LOW-NO ALCOHOL

Take a look at what’s happening in the Low-No Alcohol category with our global insights, opportunities and our predictions for the future.

📙 CATEGORY SNAPSHOT

  • Rapid Growth: Low and no-alcohol beverages are booming, driven by health-conscious consumers seeking alternatives to traditional drinks.

 

  • Health Trend: Health and wellness trends are fueling the surge in demand, with consumers prioritising healthier lifestyle choices.

 

  • Retail Shift: Retailers are adapting, dedicating more space and resources to cater to the rising demand for low and no-alcohol options.

  • Cultural: A broader cultural shift towards moderation and sobriety, with more people opting for booze-free alternatives. The ‘switcher’ vs the ‘teetotaller’.

📚  Sub-Categories:

Low Alcohol and No Alcohol can each be sub-segmented into: 

  • Beer
  • Wine
  • Spirits
  • RTDs
  • ‘Adult’ Soft Drinks

📊  THE NUMBERS

  • No/Low Alcohol Category Value 
  • No/Low Alcohol Forecasted Growth / CAGR
    • Global: 7% ‘22-26
    • US: 15% ‘23-’27
    • UK: 8% ‘23-’27
    • EU: 5% ‘24-’28*

*Non-alcoholic beer (which represents >70% of no/low alcohol in Europe)

⌛️ CATEGORY LANDSCAPE

  • Accelerated Growth: The low and no-alcohol category has seen steady growth in recent years and is forecast to grow at an even faster rate over the next 4 years, thanks to the increasing emphasis on health and wellness. As people prioritise their well-being, there’s a noticeable rise in demand for alternatives to traditional boozy beverages.

 

  • Demographic Shift: Millennials have been at the forefront of this trend, but they aren’t alone; younger generations are also hopping on board, showing a clear preference for drinks that align with their health-conscious lifestyles.

 

  • Rising Abstainers: Whilst 78% of consumers also drink alcoholic drinks, recent growth is being driven by alcohol abstainers. It’s part of a broader cultural shift towards moderation and sobriety, with more people opting for booze-free alternatives.

 

  • Market Dominance of No-Alcohol Products: Zero alcohol content reigns supreme (accounting for 70% of the no/lo alcohol share). This dominance isn’t expected to wane anytime soon; no-alcohol offerings are set to drive the bulk of the category’s growth in the years to come. 

 

  • Beer Segment Leadership: Beer is the largest and most influential of the segments. With its wide appeal and diverse range of options, the beer segment is set to stay on top, propelling the category to new heights. ISWR expects the Beer/Cider segment to contribute 70% of the growth between ‘22-26

💡 WHAT’S IN STORE FOR LOW-NO ALCOHOL BEVERAGES?

  • Shift in product messaging: As the category matures, brands need to stand for more than just their ABV content.  Product messaging is going beyond merely showcasing alcohol content, we can expect to see a surge in products focusing on pack, flavour and functional benefits. 

  • Enhanced In-Store Signage and Visibility: Visibility is a key challenge for the no / low sector, but with its growing popularity retailers are likely to invest in better signage and dedicated shelf space to highlight these products. Expect to see clearer labelling, distinct aisle markers, and attractive displays that make it easier for shoppers to locate and explore the category. Additionally, as retailers become more educated about consumer preferences, they may strategically position low and no-alcohol options in high-traffic areas or alongside complementary products, increasing visibility and driving sales.

  • Rise of No/Low Alcohol Brand Partnerships with Influencers: Expect a surge in collaborations between no/low alcohol brands and social media influencers. Influencers, especially in wellness and lifestyle niches, will promote these products, driving awareness and engagement among health-conscious audiences.

🏁  SOME CATEGORY PLAYERS

UK –  Zeno,  CleanCo, Lucky Saint, Wild Idol, Sipsmith

USA – Athletic, Teetotaler, Ritual, De Soi, Figlia, Better Than Booze

Canada – Veer, IPYAY, Biere Sans Alcool,  Harmons, Solbru

Europe – Undone, Jever Fun, Pierre Zero

🔮  3 PREDICTIONS

  1. Rise of Alcohol-Free Events: Alcohol-free events catering to consumers seeking social experiences without alcohol could start to pop up. These events will provide a platform for brands to showcase their products in a festive, inclusive atmosphere, driving visibility and consumer engagement.

  2. Mainstream Adoption of No-Alcohol Mixology: Expect a rise in the popularity of no-alcohol mixology, with bartenders crafting creative cocktails using alcohol-free spirits, mixers, and botanicals. This trend will help elevate the perception of non-alcoholic drinks and encourage experimentation with sophisticated flavours and presentations.

  3. Collaboration with Wellness Brands: Look for collaborations between low and no-alcohol beverage brands and wellness-focused companies. These partnerships may result in co-branded products, exclusive events, and digital content aimed at health-conscious consumers seeking balanced alternatives.

🌈  3 OPPORTUNITIES

  1. Expansion of Non-Alcoholic Sections in Retail: As demand for low and no-alcohol beverages continues to rise, expect to see an expansion of dedicated sections in retail stores.

    Look for supermarkets and liquor stores to allocate more shelf space to non-alcoholic options, making it easier for consumers to find and explore a variety of alcohol-free drinks. This increased visibility could lead to greater accessibility and awareness, driving further growth in the category.


  2. Unlocking Creative Advertising: No-alcohol drinks have the freedom to advertise without the strict regulations faced by alcoholic drinks. This opens doors to innovative marketing strategies targeting new audiences and occasions. Brands can now showcase health benefits, social moments, and everyday enjoyment without the usual constraints.

    This flexibility fuels engaging campaigns across social media, digital platforms, and experiential events, driving awareness and adoption.


  3. New Distribution Channels: Diversifying distribution can access new customer segments and drive category growth.  While brick and mortar off trade is the dominant channel, other routes to market will emerge.

    With the rise of e-commerce and D2C models, brands can explore online platforms and subscription services to reach consumers. Additionally, partnerships with health and wellness retailers, specialty stores, and unconventional outlets like fitness centres offer new opportunities.

    The mature beer market is likely to pioneer these channels, paving the way for other categories. 

All data is correct at time of writing. 

BRAND SPOTLIGHT

Check out some of our Brand Spotlight articles in the Low-No Alcohol category!

TÖST

USA
Coming Soon!

DAYS BREWING

UK
Coming Soon!

UNDONE

GERMANY
Coming Soon!

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