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Writer's pictureVik F.

The Growing Demand for No- and Low-Alcohol Beverages

The no- and low-alcohol beverage market is set to expand by over $4 billion globally by 2028, driven by evolving consumer preferences and a growing interest in health-conscious lifestyles. With a projected annual growth rate of 7% for no-alcohol beverages, this segment is reshaping drinking habits across key markets. No-alcohol products are attracting consumers who value quality and complexity in their beverages. Between 2022 and 2024, the no-alcohol segment gained 61 million new consumers, far outpacing growth in low-alcohol options. Younger generations, particularly Gen Z and Millennials, are at the forefront of this movement, not only drinking more frequently but also demonstrating stronger brand loyalty.


Group of friends raising up their bottle of seltzer to toast each other in front of a bar outdoors.

The United States and Brazil are emerging as leaders in the no-alcohol category. In the United States, growth is projected at 18% annually through 2028, fueled by a diverse range of offerings, including ready-to-drink beverages, spirits, and beer. Brazil’s market is expected to grow by 10% annually, with no-alcohol beer dominating. Meanwhile, Australia is another promising market, with growth estimated at 7.5% annually, offering local breweries an opportunity to cater to younger, health-focused consumers. In these markets, no-alcohol beverages are being embraced by a range of demographics. Gen Z and Millennials prioritize these products for their wellness benefits, while Boomers are moderating their alcohol intake for lifestyle and health reasons. Moderation practices such as Dry January and Sober October are gaining traction, especially among younger drinkers.


No-alcohol products are evolving beyond basic alternatives to alcohol. Brands are innovating with functional ingredients such as botanicals and adaptogens, creating beverages that appeal to consumers seeking both taste and wellness benefits. Products like sparkling teas and other non-traditional options are expanding the category’s reach. No-alcohol beer remains a standout leader in this segment, driving growth globally. Breweries, particularly in markets like Australia and Brazil, have an opportunity to explore new flavors, premium offerings, and sustainability initiatives to meet rising consumer demand.


Despite the positive momentum, challenges remain. Availability continues to be a barrier in emerging markets like the United States, Brazil, and South Africa, where demand is outpacing distribution. In more established markets such as Spain and Japan, availability is less of an issue, allowing for broader consumer adoption. Addressing these gaps in distribution will be crucial for sustained growth.


The no- and low-alcohol category is no longer just a niche market. It reflects a fundamental shift in how consumers approach their drinking habits, prioritizing health, quality, and a richer overall experience. With innovation and accessibility at the forefront, brands are well-positioned to capitalize on this growing demand. From no-alcohol beer to ready-to-drink beverages, the future of this market is bright. Companies that focus on delivering exceptional taste and meeting consumer expectations will not only thrive but help redefine the global beverage industry for years to come.


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