While 2020 was a challenging year for beverage alcohol, consumer demand for no- and low alcohol beer, wine, spirits, and ready-to-drink (RTD) products continues to increase.
The buoyant no/low category gained share within the total beverage alcohol market last year to 3%, and total volume is forecasted to grow by 31% by 2024, according to the new ‘No- and Low-Alcohol Strategic Study 2021’ from IWSR Drinks Market Analysis.
The study examines the no/low space in 10 focus countries, Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, the UK and the US, representing over 75% of global no- and-low alcohol consumption.
“What we’re seeing is a moderation trend that’s sweeping across key global markets, and that’s bringing with it increased demand for reduced alcohol, or alcohol-free drinks,” said Mark Meek, CEO of London-based IWSR Drinks Market Analysis.
“Brand owners will have an important role to play in the future development of no- and low alcohol, as increasing the breadth of products available to consumers and their price points will support category growth and broaden its appeal.”
While the traditional alcohol market’s greater exposure to bars and restaurants saw it struggle in the wake of mass venue closures across the world, no/low categories have seen largely positive, albeit muted, growth, with a volume consumption increase in the 10 markets of approximately 1% in 2020.
