Low Alcohol Beverages Market Report 2025

The low alcohol beverages market size has grown strongly in recent years. It will grow from $1.33 billion in 2024 to $1.41 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to changing consumer preferences, regulatory initiatives, innovation in product development, social trends and cultural shifts, 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 $1.76 billion in 2029 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to global wellness movement, environmental sustainability, demographic changes, retail landscape evolution, investments and collaborations. Major trends in the forecast period include health and wellness movement, innovation in product development, societal and cultural shifts, regulatory environment, millennial and gen z preferences.

The growing demand for a healthier lifestyle is expected to drive the growth of the low-alcohol beverages market. Consumers are increasingly prioritizing health-conscious choices, including the intake of healthier beverages, which often have fewer calories and sugar than traditional alcoholic drinks. Low-alcohol beverages are gaining popularity for their ability to support a balanced lifestyle without compromising on taste. For example, according to the Organic Industry Survey by the Organic Trade Association in May 2023, organic beverages became the second highest-selling organic category in 2022, with sales reaching $9 billion - a 4% increase. Organic coffee led the category, generating nearly $2.3 billion in sales, up 7% from the previous year. As consumers continue to seek healthier alternatives, the demand for low-alcohol beverages is expected to rise, fueling the market's growth.

The rising demand for clean-label ingredients is expected to drive the growth of the low-alcohol beverages market. Clean-label ingredients are those that are natural, minimally processed, and free from artificial additives, preservatives, or synthetic components, and their use in low-alcohol beverages appeals to health-conscious consumers. These ingredients promote transparency, enhance natural flavors, cater to dietary preferences, and build consumer trust, which is crucial in a market increasingly driven by mindful and informed purchasing decisions. For example, in April 2023, the Central Statistics Office Ireland reported that oats yield increased by 0.2 tons per hectare in 2022 compared to June 2021, reflecting the growing trend toward natural and organic ingredient production. This shift toward clean-label ingredients is contributing to the increasing demand for low-alcohol beverages, further driving market growth.

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 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 include 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, Bells Brewery Inc., Accolade Wines Ltd., Diageo plc, Molson Coors Brewing Co., Beam Suntory Inc., The Boston Beer Co. Inc., Sapporo Breweries Ltd., United Breweries Group, Big Drop Brewing Co. Ltd., Curious Elixirs, Floreat Wines, Gnista Spirits, Athletic Brewing Company, Carlsberg AS, BrewDog plc, Brooklyn Brewery Corp., Cervecería Cuauhtémoc Moctezuma.

North America was the largest region in the low-alcohol beverages market in 2024. 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.

Low-alcohol beverages are drinks characterized by a lower alcohol strength, typically ranging from 0.5% to 1.2% ABV (alcohol by volume). Notably, these beverages exclude diuretics, which do not contribute to dehydration and, in fact, aid the body in maintaining hydration.

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 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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