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low alcohol beverages market

Low Alcohol Beverages Market Share, Size, Trends, Industry Analysis Report, By Product Type (Beer, Wine, Spirit, and RTDs); By Distribution Channel; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Dec 2022
  • Pages: 117
  • Format: PDF
  • Report ID: PM2898
  • Base Year: 2021
  • Historical Data: 2018-2020

Report Summary

The global low alcohol beverages market was valued at USD 1.27 billion in 2021 and is expected to grow at a CAGR of 5.9% during the forecast period.

The rapid change in consumer preference towards healthy, tastier, and more innovative high-quality low alcohol beverages and drinks for maintaining their health goals during their everyday life routines, has forced global manufacturers to introduce products without any change in mouthfeel and taste to cater to the rising consumer demand across the globe are major factors propelling the growth of the global market at a healthy rate of growth.

Low Alcohol Beverages Market Size
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Moreover, rising investments by the manufacturers of low alcohol beverages to enhance product quality, variety, and taste are also likely to push the market growth during the projected period positively.

For instance, in October 2022, Radico Khaitan announced the launch of cocktail mixes containing 4.8% alcohol, which will be sold in cans. The company said the product would be available in three variants: cola, cosmopolitan, and mojito. With this product launch, company is focusing on filling the void of beverages with low alcohol content.

Furthermore, the rising popularity of “nolo” drinks, typically known as no and low-alcohol drinks, among 18-24 years old people and rapid growth in the consumption of low-alcohol beverages by young generation, especially in the Asia Pacific countries such as India and China due to high population and consumer base is likely to contribute significantly to the market growth over the coming years. According to a study done by British craft beer, 1/3 of young adults consumed alcohol and increased drinking ABV beers to quench their thirst.

The outbreak of the COVID-19 pandemic has significantly impacted the market’s growth. The high emergence of deadly coronavirus across the globe has resulted in lockdowns and various other restrictions. Due to this, many bars, restaurants, and clubs worldwide were temporarily closed, negatively impacting market sales. Moreover, high disruptions in the global supply chain and lack of transport connectivity during the pandemic also negatively impacted the market.

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Industry Dynamics

Growth Drivers
The continuously growing interest of consumers regarding health and wellness and increasing awareness of several adverse health effects because of high consumption of alcoholic beverages are major factors projected to drive the growth of the global market extensively over the anticipated period. In recent years, the demand and penetration for improved high-quality, low alcohol drinks to maintain their health goals has significantly led the market players to introduce new products since these factors have cumulatively aided in augmenting the market growth and demand.

Furthermore, increasing consumer disposable income and spending power, especially in developed countries such as United States, Canada, France, Germany, and Japan, coupled with the rising introduction to various types of low alcoholic beverages by manufacturers across the globe, are also likely to propel the global market grew rapidly in the coming years.

Report Segmentation

The market is primarily segmented based on product type, distribution channel, and region.

By Product Type

By Distribution Channel

By Region

  • Beer
  • Wine
  • Spirit
  • RTDs
  • Supermarkets/Hypermarkets
  • Convenience Stores
  • Specialty Stores
  • Online Stores
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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RTDs segment accounted for the largest market share in 2021

The ready-to-drink segment accounted for a major global revenue share in 2021 and is expected to maintain its position over the forecast period owing to a rapid increase in consumer awareness of the availability of these types of products and increasing young population across the world. Most global manufacturers are highly focused on introducing various new flavors and embracing several adequate marketing strategies, including attractive packaging, high investment in promotional activities, and others. This is projected to broaden the market demand and improve segment prospects shortly.

Moreover, the low-alcohol beer segment is projected to grow substantially during the anticipated period due to the rising adoption of healthier lifestyles and awareness of several types of benefits of these beverages. In addition, the availability of a wide range of flavors and soothing taste of these products are capturing the great attention of young consumers, adult population, and women segment has paved the way for high segment growth over the coming years.

Online stores segment is expected to register fastest growth

The online distribution channel segment is expected to grow at a high CAGR during the projected period. Rising prevalence of smartphones and internet facilities, coupled with the rapid emergence of various online shopping platforms due to multiple services and facilities offered by them to consumers including easy availability of various global brands, convenient payment methods, and free home delivery, are significant reasons fueling the growth of the segment around the world. In addition, ease of entry barriers for new companies on this platform and a growing number of new entrants in the market who are launching their products through various eCommerce platforms such as Amazon, Walmart, and eBay are further projected to boost the adoption of segment market.

However, the supermarkets/hypermarkets segment held the largest market revenue share in 2021 owing to availability of a wide range of products from several global brands under one roof and ability to check products physically coupled with a better shopping experience compared to other channels. Moreover, many large supermarkets, including Target, Aldi, Walmart, and Whole Foods, focus on expanding their product offerings to low-alcohol segments. For instance, in July 2021, Woolworths announced the expansion of its offerings of low-alcohol wine, beer, and spirits to cater to the surging consumer demand from global consumers.

The demand in Asia Pacific is expected to witness significant growth

The growth of the regional market can be attributed to presence of various untapped markets, increasing consumer disposable income, and huge population. The region is majorly consolidated with several emerging economies like India, China, Malaysia, and Indonesia due to easy availability of low-cost labor and raw materials. In addition, growing government efforts and initiatives to support the low alcohol beverages market in these countries are attracting global market players to operate their businesses in the region.

Furthermore, North America dominated the low alcohol beverages market in 2021 owing to the large presence of developed economies and early adoption of advanced technology and innovative manufacturing methods in the region. Growing consumer knowledge of health risks connected with the high consumption of alcoholic beverages and extreme growth in the demand for various flavored and low-alcohol hard seltzers in the United States is likely to provide lucrative growth opportunities for beverage manufacturers in the area.

Competitive Insight

Key players include Bacardi Ltd., Abita Brewing Company, Bell’s Brewery Inc., Carlsberg breweries A/S, Blue Moon Brewing Company, Constellation Brands Inc., Hartwall Ltd., Heineken NV., HP Bulmer Ltd., Jack’s hard Cider, Farmageddon Brewery, Blake’s Hard Cider Co., Asahi Premium Beverages Pty. Ltd., Aftershock Brewing Co., and A. Le Coq Estonia.

Recent Developments

In January 2022, Katy Perry announced the launch of its new beverages brand De Soi with its business partner named Morgan McLachlan. The new beverage product line comes in three flavors golden hour, purple lune, and champignon dreams. De Soi is currently available to purchase online through 750ml bottles.

DrinksDeli, an online portal dealing in no-low alcoholic beverages, announced the launch of its zero-alcohol beverage online portal in India. The company will sell its products in six categories: health drinks, sodas and tonics, cocktail mixers, coffees and drinkware, syrups, and teas.

Low Alcohol Beverages Market Report Scope

Report Attributes

Details

Market size value in 2022

USD 1.34 billion

Revenue forecast in 2030

USD 2.11 billion

CAGR

5.9% from 2022 – 2030

Base year

2021

Historical data

2018 – 2020

Forecast period

2022 – 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Segments Covered

By Product Type, By Distribution Channel, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key Companies

Bacardi Ltd., Abita Brewing Company, Bell’s Brewery Inc., Carlsberg breweries A/S, Blue Moon Brewing Company, Constellation Brands Inc., Hartwall Ltd., Heineken NV., HP Bulmer Ltd., Jack’s hard Cider, Farmageddon Brewery, Blake’s Hard Cider Co., Asahi Premium Beverages Pty. Ltd., Aftershock Brewing Co., and A. Le Coq Estonia.

Key Take-Away
Polaris Market Research
Global Low Alcohol Beverages Market Size, Share Analysis Report, 2022-2030