Low Alcohol Beverages Market Report 2026

The low alcohol beverages market size has grown strongly in recent years. It will grow from $1.41 billion in 2025 to $1.48 billion in 2026 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to changing consumer drinking habits, rising health and wellness awareness, expansion of modern beverage processing facilities, increasing social acceptance of low-alcohol drinks, growth of ready-to-drink beverages.

The low alcohol beverages market size is expected to see strong growth in the next few years. It will grow to $1.87 billion in 2030 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to increasing demand for mindful drinking options, rising innovation in fermentation control technologies, expansion of functional low-alcohol beverages, growing retail shelf space allocation, increasing marketing focus on lifestyle branding. Major trends in the forecast period include expansion of low-abv beverage portfolios, rising innovation in flavor retention techniques, growing demand for health-oriented alcohol alternatives, increased focus on premium low-alcohol offerings, wider distribution through retail channels.

The rising demand for a healthier lifestyle is expected to drive the growth of the low-alcohol beverages market going forward. A healthier lifestyle encompasses the consumption of nutritious beverages - drinks deemed beneficial for overall well-being. Consumers perceive that incorporating such beverages into their daily routines supports better health, and low-alcohol beverages are often favored for containing fewer calories and lower sugar compared to full-alcohol alternatives. For instance, in June 2024, the International Food Information Council (IFIC), a US-based non-profit organization, reported that 54% of Americans followed a specific diet or eating pattern over the past year. Interest in increasing protein intake rose from 59% in 2022 to 67% in 2023, reaching 71% in 2024, while approximately half of consumers aimed to consume more fresh foods, widely regarded as the healthiest options. Therefore, the growing focus on healthier beverages is driving the low-alcohol beverages market.

Major companies in the low-alcohol beverages market are increasingly focusing on developing innovative products to boost revenues and cater to evolving consumer tastes. A notable example is Coca-Cola's introduction of Lemon-Dou, a ready-to-drink alcoholic beverage featuring a blend of sparkling water, alcohol, and lemon flavor. This drink, originally popular in Japan, has gained traction in several countries. In December 2023, The Coca-Cola Company launched Lemon-Dou in India to tap into the growing alcoholic beverage market. The product, inspired by the traditional Japanese cocktail Chuhai, combines shochu and lime for a refreshing, tangy flavor profile. Priced at INR 230 for a 250-ml can, Lemon-Dou is available in select regions, including parts of Maharashtra and Goa, aligning with changing consumer preferences and positioning itself uniquely in the market.

In January 2023, Refresco Group, a Netherlands-based beverage solutions provider, successfully acquired Avandis for an undisclosed amount. This strategic move is expected to bolster Refresco's offerings of alcoholic beverages in Europe. The addition of Avandis' production facility in Zoetermeer, the Netherlands, to Refresco's extensive network across Europe, North America, and Australia aims to strengthen the company's global position as an independent beverage solutions provider, catering to branded clients and leading retailers. Avandis specializes in the production of both high- and low-alcohol beverages, providing co-packing and private-label solutions for spirits in bottles and cans.

Major companies operating in the low alcohol beverages market are Anheuser Busch Companies LLC, Heineken NV, Carlsberg Breweries AS, Molson Coors Brewing Company, Asahi Group Holdings Ltd, Diageo plc, Constellation Brands Inc, Sapporo Breweries Ltd, United Breweries Group, Royal Unibrew AS, The Boston Beer Company Inc, BrewDog plc, Athletic Brewing Company, Big Drop Brewing Co Ltd, Brooklyn Brewery Corp, Accolade Wines Ltd, Gnista Spirits, Curious Elixirs, Floreat Wines, Cerveceria Cuauhtemoc Moctezuma.

North America was the largest region in the low-alcohol beverages market in 2025. The regions covered in the low alcohol beverages market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the low alcohol beverages market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The low-alcohol beverages market consists of sales of roasted light beer, gin and diet tonic, hard seltzer, and other related products. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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