Low Alcohol Beverages Global Market Report 2024

The low alcohol beverages market size has grown strongly in recent years. It will grow from $1.25 billion in 2023 to $1.33 billion in 2024 at a compound annual growth rate (CAGR) of 6.3%. The growth observed in the historical period can be attributed to factors such as changing consumer preferences, regulatory initiatives, innovation in product development, social trends and cultural shifts, as well as effective marketing and branding strategies.

The low alcohol beverages market size is expected to see strong growth in the next few years. It will grow to $1.65 billion in 2028 at a compound annual growth rate (CAGR) of 5.5%. The anticipated growth in the forecast period can be attributed to factors such as the global wellness movement, emphasis on environmental sustainability, demographic changes, evolution in the retail landscape, and increased investments and collaborations. Major trends expected in the forecast period include the health and wellness movement, ongoing innovation in product development, societal and cultural shifts, the regulatory environment, and preferences of the millennial and Gen Z demographics.

The anticipated increase in the demand for a healthier lifestyle is poised to drive the growth of the low-alcohol beverages market in the future. A preference for healthier living includes the consumption of beverages deemed suitable for one's well-being. Consumers believe that integrating healthful fluids into their daily routines contributes to overall wellness, and low-alcohol beverages are often perceived as having fewer calories and less sugar than their full-alcohol counterparts, aligning with the goal of a healthy lifestyle. As an example, a study conducted by Kerry Group Plc., an Ireland-based provider of functional and nutritional solutions, revealed that since the onset of the COVID-19 pandemic, 65% of beverage consumers in the United Kingdom, Germany, Poland, and Spain have heightened health concerns. Approximately 50% of respondents prioritize mental health, while 59% emphasize immunity. Hence, the growing demand for healthier beverage options is a driving force behind the expansion of the low-alcohol beverages market.

The upward trend in clean-label ingredients is expected to further elevate the growth of the low-alcohol beverages market. Clean-label ingredients pertain to natural, minimally processed components devoid of artificial additives, preservatives, or synthetic elements. Integrating clean-label ingredients into low-alcohol beverages not only fosters consumer trust and transparency but also addresses dietary preferences, enhances natural flavors, and positions products favorably in a market increasingly shaped by conscientious and well-informed purchasing decisions. A 2021 Food and Health Survey by the International Food Information Council (IFIC) reported that 64% of U.S. adults opt for foods with clean-label ingredients. Consequently, the surge in demand for clean-label ingredients is a significant driver of the low-alcohol beverages market.

A prominent trend gaining traction in the low-alcohol beverage market is product innovation. Key companies in the market are directing efforts towards developing novel products to stay competitive. For instance, Kaska, a Finland-based low-alcohol drinks company, introduced Smål Boosted Gin in September 2022. This unique product is distilled with a concentrated mix of botanicals specifically for low-alcohol use, with a recommended serving size of just one tiny capful for a single drink. The 200-ml bottle comes with a 10 ml measure made of 100% biodegradable Sulapac wood-based material, emphasizing sustainability.

Major players in the low-alcohol beverages market are keen on introducing innovative products such as Lemon-Dou Craft to enhance their market share and revenues. Lemon-Dou is a ready-to-drink alcoholic beverage, characterized by its sparkling water and alcohol combination with a lemon flavor, gaining popularity in several countries. An example is The Coca-Cola Company's launch of Lemon-Dou Craft in September 2021, featuring various options to cater to consumers seeking ready-to-drink alcoholic beverages with a zesty and pleasant flavor. The introduction aligns with the growing demand for non-alcoholic beverages in the Chinese 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 report are Anheuser-Busch Companies LLC, Constellation Brands Inc., Heineken NV, Carlsberg Breweries A/S, Bacardi Limited, Asahi Group Holdings Ltd., Royal Unibrew AS, Abita Brewing Company, Aftershock Brewing Co., Bells Brewery Inc., Accolade Wines Ltd., Diageo plc, Allagash Brewing Company, Molson Coors Brewing Co., Beam Suntory Inc., The Boston Beer Co. Inc., Sapporo Breweries Ltd., United Breweries Group, Big Drop Brewing Co. Ltd., Carlton & United Breweries Ltd., Hansen Holding A/S, Curious Elixirs, Floreat Wines, Gnista Spirits, Athletic Brewing Company, Carlsberg AS, BrewDog plc, Brooklyn Brewery Corp., Carlsberg India Pvt. Ltd., Cervecería Cuauhtémoc Moctezuma.

North America was the largest region in the low-alcohol beverages market in 2023. The regions covered in the low alcohol beverages market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the low alcohol beverages market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of low-alcohol beverages include low-alcohol beer, low-alcohol spirits, low-alcohol wine, low-alcohol RTDs (ready-to-drink), and low-alcohol ciders. Low-alcohol beer specifically refers to a type of beer with an alcohol content (ABV) of less than 2.5%. These beverages are distributed through various channels, including both store-based and non-store-based options, and are utilized in applications such as supermarkets, hypermarkets, and retail outlets.

The low alcohol beverages market research report is one of a series of new reports that provides low alcohol beverages market statistics, including low alcohol beverages industry global market size, regional shares, competitors with a low alcohol beverages market share, detailed low alcohol beverages market segments, market trends and opportunities, and any further data you may need to thrive in the low alcohol beverages industry. This low alcohol beverages market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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