NEW
YORK, July 16, 2024 /PRNewswire/ -- The global
low-alcohol beverages market size is estimated to grow by
USD 332 million from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of over 4.54% during the forecast period. Increasing
health consciousness among consumers is driving market
growth, with a trend towards increase in demand for
gluten-free and low-calorie beer. However, availability of
counterfeit products poses a challenge. Key market players
include Accolade Wines Australia Ltd., Allagash Brewing Co.,
Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bacardi
Ltd., Beam Suntory Inc., Carlsberg Breweries AS, CODYs Drinks
International GmbH, Constellation Brands Inc., Curious Elixirs,
Diageo Plc, Heineken NV, Kirin Holdings Co. Ltd., Metabrand Corp.,
Molson Coors Beverage Co., New Belgium Brewing Co. Inc., Olvi Plc,
Royal Unibrew AS, Sapporo Holdings Ltd., and The Boston Beer Co.
Inc..
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Low-Alcohol
Beverages Market Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
4.54%
|
Market growth
2024-2028
|
USD 332
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
3.7
|
Regional
analysis
|
Europe, North America,
APAC, South America, and Middle East and Africa
|
Performing market
contribution
|
Europe at
37%
|
Key
countries
|
US, China, Germany, UK,
and France
|
Key companies
profiled
|
Accolade Wines
Australia Ltd., Allagash Brewing Co., Anheuser Busch InBev SA NV,
Asahi Group Holdings Ltd., Bacardi Ltd., Beam Suntory Inc.,
Carlsberg Breweries AS, CODYs Drinks International GmbH,
Constellation Brands Inc., Curious Elixirs, Diageo Plc, Heineken
NV, Kirin Holdings Co. Ltd., Metabrand Corp., Molson Coors Beverage
Co., New Belgium Brewing Co. Inc., Olvi Plc, Royal Unibrew AS,
Sapporo Holdings Ltd., and The Boston Beer Co. Inc.
|
Market Driver
The global low-alcohol beverages market is experiencing
significant growth due to increasing consumer preferences for
gluten-free and low-calorie options. The demand for these products
is driven by health and diet consciousness, as well as the rising
number of people with celiac disease. In response, vendors in the
market are introducing low-calorie and gluten-free low-alcohol
beers. For instance, Good Drinks Australia Ltd launched Rider Lite,
a no-carb, low-calorie beer brewed with electrolytes, containing 78
calories, and targeted at Gen Z and younger Millennial drinkers.
The drink's temperature-sensitive packaging adds to its appeal. The
growing trend of low-calorie food and beverages, coupled with the
increasing awareness of celiac disease, is expected to fuel market
growth during the forecast period.
The Low-Alcohol Beverage market is on the rise, with a focus on
healthy options and great taste. ABV in these beverages is kept
low, making them attractive to health-conscious consumers. Taste
and mouthfeel are key factors, ensuring these drinks don't
compromise on enjoyment. Variety is essential, with fruit flavors
leading the charge. Companies like Molson
Coors are entering this space with offerings like
Coors Edge. Non-alcoholic beverages
are also gaining popularity due to health concerns related to
cardiovascular ailments and high blood pressure. Emerging economies
and millennials are driving growth in the Low-Alcohol Beverage
industry. Consumers, especially young people, are embracing healthy
drinking habits and mindful consumption. The Low-Alcohol Beverage
industry offers high-quality, creative, nutritious, and tasty
alternatives to traditional alcoholic beverages. Cocktail mixes,
canned drinks, and flavors like Cosmopolitan and Mojito are popular
choices. Despite lower alcohol content, these beverages still
deliver on taste and product quality. However, it's important to
note that even low-alcohol drinks can have negative health effects
with heavy consumption.
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Market Challenges
- The global low-alcohol beverages market faces a significant
challenge from the prevalence of counterfeit products. With the
increasing demand for alcoholic beverages, counterfeit
manufacturers are capitalizing on the opportunity, particularly in
developing regions. These products, made from low-quality raw
materials, can lead to health risks. E-commerce platforms
facilitate their distribution and sale, making it difficult for
consumers to distinguish between genuine and counterfeit products.
Government authorities worldwide seize counterfeit food and
beverage products annually, including low-alcohol beverages. The
illicit trade not only affects industry revenue but also poses a
serious health threat to consumers. In India, between 2016 and 2022, over 6,000
people died due to spurious liquor. The relatively low price of
counterfeit products impacts the sales and pricing strategies of
genuine vendors, diluting their market shares and damaging brand
reputation. Vendors attempt to increase consumer awareness through
advertising and promotional campaigns. However, these activities
are costly, reducing profit margins. Additionally, the availability
of counterfeit products affects sales volume, leading to inventory
backlogs for international vendors. Therefore, the presence of
counterfeit low-alcohol beverages with lower prices remains a
significant challenge for the global market during the forecast
period.
- The Low-Alcohol Beverage Industry is witnessing growth as
consumers, particularly millennials and young people, shift towards
healthy drinking habits. This trend is driven by the desire for
mindful drinking and better lifestyles. Low-alcohol beer, with its
high-quality, creative flavors, is leading the charge. However, the
industry faces challenges in meeting consumer preferences for taste
and mouthfeel, as well as competitive alcoholic beverages like
wine, beer, and spirits. To stand out, low-alcohol beverages offer
nutritious options, with flavors ranging from Nolo drinks to
cocktail mixes. Alcohol content is a key consideration, with many
opting for cans and lower alcohol percentages. Negative health
effects from heavy alcohol consumption continue to fuel demand.
British craft beer and cocktails like Cosmopolitan and Mojito are
also popular choices. Online shopping platforms provide low entry
hurdles for businesses looking to enter this market. Overall, the
low-alcohol beverage industry must focus on product quality,
flavor, and meeting evolving consumer needs to succeed.
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Segment Overview
This low-alcohol beverages market report extensively covers
market segmentation by
- Distribution Channel
- 1.1 Off-trade
- 1.2 On-trade
- Product
- 2.1 Low alcohol beer
- 2.2 Low alcohol wine
- 2.3 Low alcohol RTD
- 2.4 Low alcohol cider
- 2.5 Low alcohol spirits
- Geography
- 3.1 Europe
- 3.2 North America
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Off-trade- The off-trade segment is
experiencing notable growth in the global low-alcohol beverages
market. Preeminent distribution channels for low-alcohol beverages
in the off-trade sector include individual retailers, supermarkets,
hypermarkets, and online platforms. These channels provide
consumers with a vast selection of low-alcohol beverage options.
Supermarkets and hypermarkets, such as Tesco Plc (Tesco), Carrefour
SA (Carrefour), and Target Brands Inc. (Target), offer dedicated
sections for various low-alcohol beverage brands. The off-trade
sales of low-alcohol beverages are anticipated to expand during the
forecast period due to the increasing number of low-alcohol
beverage manufacturers supplying their products through these
channels. Additionally, the growing internet penetration and the
expanding base of online shoppers will boost demand for low-alcohol
beverages via online platforms. Online retailing is popular among
US consumers, particularly Millennials, due to its convenience and
extensive range of low-alcohol beverage choices. Urban populations
in the US prefer purchasing low-alcohol beverages through
e-commerce platforms, eliminating the need to visit physical
stores. Low-alcohol beverages are readily available in US
hypermarkets and supermarkets, which offer convenience and extended
hours of operation. Consumer reviews facilitate informed purchasing
decisions regarding low-alcohol beverages. Online distribution
allows vendors to offer significant discounts on various types of
low-alcohol beverages directly to consumers, reducing operational
costs. Although the on-trade distribution channel continues to
dominate low-alcohol beverage sales, the off-trade segment is
projected to witness substantial growth during the forecast period
due to competitive pricing and expedited delivery services.
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analysis including forecast (2024-2028) and historic data
(2017-2021) - Download a Sample Report
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reports
The global alcoholic beverages market is witnessing steady
growth, driven by rising consumer demand for premium and craft
options, alongside innovative product offerings. Similarly, the
global cordial drink market is expanding as health-conscious
consumers seek low-alcohol and alcohol-free alternatives with rich
flavors. Meanwhile, the global sports drink market is surging due
to increasing fitness trends and the rising awareness of hydration
and energy needs among athletes and active individuals. These
markets are characterized by continuous product innovation and
evolving consumer preferences.
Research Analysis
Low-alcohol beverages, also known as alcoholic beverages with an
Alcohol-by-volume (ABV) of less than 3.5%, are gaining popularity
among consumers, particularly millennials and young people, who
prioritize healthy drinking habits and mindful consumption. These
beverages offer the taste and mouthfeel of traditional alcoholic
drinks without the high calorie and alcohol content. The market for
low-alcohol beverages is diverse, with a variety of options from
fruit-flavored drinks to high-quality, creative brews. Consumers
seek out low-calorie, nutritious options that align with their
health goals. Product quality and flavor are key considerations,
making it essential for manufacturers to prioritize these factors.
Molson Coors, among others, has
entered the market with offerings like Coors Edge, catering to this growing demand for
tasty, low-ABV beverages.
Market Research Overview
The low-alcohol beverages market is witnessing significant
growth due to the increasing demand for healthy and mindful
drinking options. These beverages, with an Alcohol-by-volume (ABV)
below 3.5%, offer consumers the taste and mouthfeel of traditional
alcoholic beverages without the negative health effects associated
with heavy consumption. With a focus on variety, quality, and
low-calorie options, the industry caters to a wide range of
customer preferences. Fruit flavors dominate the market, but
creative low-alcohol beer and cocktail mixes are also gaining
popularity. Emerging economies and millennials are driving the
growth of this industry, with women and adults, in particular,
showing a rising use of these beverages. The market includes a
range of products, from non-alcoholic beverages to low-alcohol beer
and wine, and even spirits. Despite the low alcohol content,
product quality remains a key priority, with companies investing in
innovative flavors and packaging, such as cans, to appeal to young
consumers. Online shopping platforms and low entry hurdles further
contribute to the market's growth. However, negative health effects
from alcoholic drink consumption continue to be a concern, leading
to a greater emphasis on healthy drinking habits and better
lifestyles.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Distribution Channel
-
- Product
-
- Low Alcohol Beer
- Low Alcohol Wine
- Low Alcohol RTD
- Low Alcohol Cider
- Low Alcohol Spirits
- Geography
-
- Europe
- North America
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
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trends and provides actionable insights to help businesses identify
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Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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