Non-Alcoholic Wine Market

Non-Alcoholic Wine Market Outlook (2023-2033)

Worldwide demand for non-alcoholic wine is expected to surge at a CAGR of 10% from 2023 to 2033. At present, the global non-alcoholic wine market stands at US$ 2 billion and is estimated to reach a market size of US$ 5.2 billion by 2033.

Consumption of alcohol-free wine is predicted to rise at a CAGR of 11% over the next ten years. Broadly, alcohol-free wine products are outperforming low-alcohol wine. The decline in demand for low-alcohol wine was driven by the poor performance of the traditional lower-alcohol wine market in high-volume regions.

Wine with little or no alcohol is termed non-alcoholic wine. Alcohol-free wine has the same flavor and structure as alcoholic wine, as well as a similar aroma, but without alcohol, which makes it appealing to a larger section of the health-conscious population. Non-alcoholic wine is produced similarly to its alcoholic counterpart, the difference being that the alcoholization technology is used to remove the alcohol content.

There are several methods for the alcoholization of wine such as the vacuum distillation technology for non-alcoholic wine, a procedure wherein the wine undergoes heat treatment and the ethanol is allowed to evaporate. High-quality alcohol-free wine manufacturers take great care to heat the wine to the lowest temperature feasible, allowing evaporation to occur without cooking the wine. Another technique is reverse osmosis technology for non-alcoholic wine, which takes a substantial amount of water, making it less sustainable.

Globally, no/low alcohol beverages are on the rise, but some regions such as Europe and North America have shown to be more resilient than others in the past few years. While there is still a long way to go before non-alcoholic wine can compete with alcoholic wine, consumer preferences are shifting, and a significant share of the adult population is seeking lower alcohol portions on a more frequent basis.

Consumption of low-alcohol beverages is becoming one of the mainstream trends affecting the global beverage sector. The confluence of these trends is driving the sales of non-alcoholic wine. Consumers demand novel product offerings and alternatives to choose from in the non-alcohol wine segment, which has encouraged manufacturers to launch new versions of non-alcohol wine products such as fruit and berry-flavored non-alcoholic wines.

Sales of plain non-alcoholic wine are estimated to decrease as sales of flavored non-alcoholic wine increase. However, non-alcoholic grape wine is estimated to be the most preferred product type over the coming years. While many individuals may be drinking more at home, a desire to minimize alcohol intake among a growing number of clean-drinking, health-conscious consumers are driving demand for novel non-alcoholic alternatives, and the industry is complying.

In recent years, the food and beverage industry has witnessed a trend toward premium products. Premiumization of dealcoholized wine is gaining traction owing to a greater emphasis on flavor, high-quality ingredients, and more appealing packaging. Consumers perceive non-alcoholic wine as a product worth spending money on.

The premiumization trend is being driven primarily by millennial consumers. Most of the recent growth in premium beverage sales has been attributed to the widespread success of premium-quality wine, with customers widely purchasing novel products.

Report Attributes	Details
Non-Alcoholic Wine Market Size (2023)	US$ 2 Billion
Projected Market Value (2033)	US$ 5.2 Billion
Global Market Growth Rate (2023-2033)	10% CAGR
Market Share of Bottled Non-alcoholic Wine	80%
Key Companies Profiled	Ariel Vineyards Pierre Chavin Neobulles Proteau Treasury Wine Estates Sutter Home Winery Navarro Vineyards and Winery Chateau Diana Winery Hill Street Beverage Company Inc. Thomson and Scott Schloss Wachenheim AG Australian Vintage Limited

What is Encouraging Non-Alcoholic Wine Consumption Globally?

“Innovative Product Offerings Aiding Demand Growth for Non-Alcoholic Wine”

A flurry of health-conscious beverage entrepreneurs is capitalizing on consumers' urge to reduce alcohol consumption and live healthier lives, with the NOLO (no alcohol, low alcohol) market a prime target for new product development.

As consumers are becoming more health-conscious, cutting calories, and reducing their sugar intake, it's no surprise that health and wellness are one of the leading causes for consumers to reduce their consumption of alcohol. They are focusing more on overall well-being and cutting calories. Affordability is another key factor where consumers are stating saving money as a reason for reducing their consumption of alcohol.

The non-alcoholic beverages market is witnessing a moderation trend. Brand owners are estimated to play a critical role in the future development of alcohol-free and low-alcohol beverages, since increasing the variety of products available to consumers and their price points would promote category growth and broaden their appeal.

Over the coming years, the NOLO market will be dominated by the development of savory flavors. As people shift away from sweetness, the latest trends in the market of non-alcoholic wine will emphasize the launch of savory, sour, and bitter options.

The non-alcoholic beverage sector is seeing unprecedented growth and innovation, and attracting attention, which is estimated to push non-alcoholic wine manufacturers to offer new, premium alternatives without risking authenticity, flavor, or distinctiveness. Top flavored non-alcoholic wine retailers are increasing the availability of more flavor profiles.

How Can Sales of Non-Alcoholic Wine Be Adversely Affected?

“Strict Government Policies and Availability of Substitutes”

The development of the non-alcoholic wine sector is hampered by several government policies. It is predicted that the biggest barrier to the market throughout the forecast period will be the accessibility of alternative beverages in carbonated and natural-based forms and high production costs and selling prices.

How are New Companies Thriving in this Space?

“New Market Entrants Offering Novel Non-Alcoholic Wine Flavors & Textures”

Upcoming market players are creating novel flavors and textures of non-alcoholic wine in response to evolving customer tastes and preferences. Emerging businesses are attempting to collaborate with reputable non-alcoholic wine producers to strengthen their position in the market.

• A variety of alcohol-free wines have been made available by Thomson & Scott, a start-up based in London, under the brand name Noughty. These drinks were created with health-conscious consumers in mind because they are low in sugar and sulfites and are vegan and halal-certified.

Which Region Will Provide Optimistic Opportunities for Market Players?

“Increasing Production of High-quality Non-Alcoholic Wine in North America”

North America holds 40% share of the global market due to a high preference for natural, lower-sugar, and lower-calorie beverages. Demand for low-alcohol wine in the region is expected to rise as a result of lower alcohol consumption, and increasing production of high-quality non-alcoholic wine.

Furthermore, 40% of the population claimed to have stopped drinking or switched to alcohol-free wine. Sales of non-alcoholic wine are estimated to increase owing to shifting consumer preferences.

Country-wise Insights

What is the Non-Alcoholic Wine Demand Outlook in Germany?

“Strict Government Laws on Alcohol Consumption in the Country”

The market in Germany is estimated to increase at a CAGR of 9.2% during 2023-2033. Germany is one of the leading markets for non-alcoholic beverages. However, non-alcoholic wine witnessed a slight decrease in sales during 2020 owing to its reliance on restaurants and bars.

The trend of dealcoholized wine in Germany is estimated to pick pace as restrictions are eased and the food service segment functions at full capacity. Stringent government laws on alcohol consumption and increasing consumer preference for still non-alcoholic wine are boosting market expansion in Germany.

Why are Non-Alcoholic Wine Sales Booming in Japan?

“Increasing Consumer Preference for Healthier Alternatives to Alcoholic Beverages”

The market in Japan is projected to expand at a CAGR of around 8% over the forecast period due to growing awareness of the health benefits of non-alcoholic beverages.

Customers are more prepared to spend more on products that enable them to exhibit greater living standards. This is one of the main causes of the growing popularity of non-alcoholic wine. It is anticipated that increasing disposable income will encourage customers to spend money on non-alcoholic beverages.

What Makes the U.S. a Highly Opportunistic Market for Non-Alcoholic Wine Producers?

“Increasing Adoption of Premium Non-Alcoholic Wine in the U.S.”

The U.S. market for non-alcoholic wine is anticipated to rise at 9% CAGR during 2023-2033. Demand for non-alcoholic sparkling wine has increased significantly in the United States, owing to its effervescent texture, which resonates with the population's taste for a fun beverage to commemorate special occasions. Increasing adoption of premium non-alcoholic wine and the presence of top producers of non-alcoholic wine products are driving market growth in the U.S.

Category-wise Insights

Which Type of Non-Alcoholic Wine is Gaining Popularity among Consumers?

“Non-Alcoholic Still Wine Highly Preferred because of Its Texture & Flavor”

Based on product, the market is classified into non-alcoholic still wine and non-alcoholic sparkling wine. Non-alcoholic still wine holds around 70% of the global market owing to top manufacturers of non-alcoholic still wine focusing on offering products through various distribution channels such as tasting rooms and online retail stores. Non-alcoholic still wine is a popular choice for special events because of its texture and flavor.

What is the Most Preferred Packaging for Non-Alcoholic Wine?

“High Demand for Bottled Non-Alcoholic Wine Owing to its Handy Shape & Aesthetic Appeal”

By packaging, the market is divided into bottles and cans. Bottled non-alcoholic wine holds a significant share of 80% of the global market for non-alcoholic wine.

Demand for bottled non-alcoholic wine is expected to grow because of its handy shape, aesthetic appeal, and utility for both, consumers and manufacturers. Because consumers are accustomed to purchasing alcohol in bottles, canned non-alcohol wine is not widely used. Can packaging of non-alcoholic wine, on the other hand, may pick pace during the forecasted period due to its compact size, which is suitable for consumers who prefer to drink on the go.

Which Sales Channel Accounts for the Highest Sales of Non-Alcoholic Wine?

“Online Stores Providing Safe Platform for Consumers to Purchase Products”

Based on sales channel, the market is divided into liquor stores, restaurants & bars, online stores, supermarkets, and tasting rooms.

A new coalition of beer, spirit, and wine manufacturers, and top retailers, has presented the industry's first safeguards for worldwide online alcohol sales. The alliance shows the commitment of top internet retailers and manufacturers to provide a safe platform for consumers to purchase products online. Online retail sales of non-alcoholic wine are expected to offer lucrative opportunities.

Competitive Landscape

Key non-alcoholic wine producers are introducing premium products due to increasing consumer interest in low-alcohol and no-alcohol wine. Leading companies are making significant investments in research and development to produce products of high quality, which could help grow the customer base.

For instance :

• In 2021, HUN Wines launched the non-alcoholic canned wine named HUN Alcohol Free which is made from South African Chenin Blanc. It is vegan-friendly.

Key Segments Covered in Non-Alcoholic Wine Industry Research

• By Product :

  • Still Non-Alcoholic Wine
  • Sparkling Non-Alcoholic Wine

• By Alcohol Concentration :

  • Alcohol-Free
  • Low-Alcohol

• By Packaging :

  • Bottles
  • Cans

• By Sales Channel :

  • Liquor Stores
  • Restaurants & Bars
  • Online Stores
  • Supermarkets
  • Tasting Rooms

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa