Zero Proof Spirit Market

Zero Proof Spirit Market Analysis by Gin, Rum, Whiskey, Tequila, and Vodka from 2023 to 2033

Analysis of Zero Proof Spirit Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Zero Proof Spirit Market Outlook (2023 to 2033)

Newly-released zero proof spirit market analysis report by Fact.MR reveals that global sales of the zero proof spirit market in 2022 were held at US$ 104.3 million. With 10% projected growth from 2023 to 2033, the market is expected to reach a valuation of US$ 271 million by the end of the forecast period.

Zero proof whiskey is expected to generate significant revenue in the market, with a projected CAGR of around 9% from 2023 to 2033.

Attributes Details

Global Zero Proof Spirit Market Size (2022)

US$ 104.3 Million

Global Zero Proof Spirit Market Size (2033)

US$ 271 Million

Global Zero Proof Spirit Market CAGR (2023 to 2033)

10%

U.S. Zero Proof Spirit Market CAGR (2023 to 2033)

7.8%

Key Companies Covered

  • Arkay Beverages Inc.
  • Ritual Zero Proof
  • Optimist Botanicals
  • Cut Above Spirits
  • Ghia
  • Strykk
  • Drink Monday
  • Ceder’s.
  • Rasasvada LLC.
  • Svami
  • Sober
  • Pentire Drinks

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Revenue of Zero Proof Spirit Market from 2018 to 2022 Compared to Demand Outlook for 2023 to 2033

As per the research of zero proof spirit market by Fact.MR - a market research and competitive intelligence provider, historically, from 2018 to 2022, the market value increased at around 9.9% CAGR. With an absolute dollar opportunity of US$ 156.5 million, the market is projected to reach a valuation of US$ 271 million by 2033.

What are the Key Drivers Influencing the Market Expansion?

Zero-proof spirits are non-alcoholic beverages designed to mimic the taste, aroma, and texture of traditional alcoholic spirits, such as gin, whiskey, or rum, without containing any alcohol. These drinks are typically made by blending various botanicals, fruits, and other natural ingredients to create a complex and nuanced flavor profile that resembles that of alcoholic spirits.

In 2020, global non-alcoholic beverage sales were valued at around US$ 1.3 trillion, which is an increase from 2018 valued at around US$ 1.2 trillion. The non-alcoholic beverage includes carbonated soft drinks, fruit juices, sports drinks, energy drinks, and ready-to-drink tea and coffee, among others. Consumers are increasingly interested in healthier lifestyles and are seeking low or zero-alcohol alternatives. This is especially true among younger generations, who are more health-conscious than previous generations. The increasing demand for non-alcoholic beverages has been triggering market growth.

In October 2021, Ritual Zero Proof announced the launch of their liquor replacement by rolling out Gin, Whisky, and Tequila Spirit Alternatives at Whole Foods Market shops in the United States, which are also accessible on Amazon.

Non-alcoholic beverages require the use of raw ingredients such as nutritive and non-nutritive sweeteners, fruits, and water, among others. High fructose corn syrup is utilized in about 90% of all soft drinks as a nutritive sweetener. Cyclamate, aspartame, sucralose, and saccharin are non-nutritive sweeteners found in non-alcoholic beverages.

According to the International Diabetes Federation, in 2020, more than 463 million people were diagnosed with diabetes. According to the World Health Organization (WHO), type 2 diabetes affects 90% of people globally. Sugar consumption has decreased due to the increased risk of diabetes connected with the consumption of sugary foods and beverages. The growing diabetic population is boosting demand for low-sugar and sugar-free beverages, which is expected to create an opportunity for the zero-proof spirits market in the upcoming years.

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Region-Wise Analysis

Which Region is Projected to Offer Significant Growth in the Market?

North America is a prominent shareholder of the market with a market size of US$ 41.9 million in 2022. It is projected that the region will have a market worth US$ 89 million by 2033.

In 2020, the total volume of non-alcoholic beverages sold in Canada was 21.4 billion liters, valued at around US$ 22.52 million, an increase of 2.4% from 2019. A large number of Canadian consumers who were drinking alcoholic beverages have been shifting to non-alcoholic beverages, especially zero-proof spirits.

Country-Wise Analysis

United States Zero Proof Spirit Market Analysis :

The market in the United States is expected to grow to be worth US$ 89 million by 2033, with an absolute dollar growth of US$ 45 billion from 2023 to 2033. The market in the United States has grown at a CAGR of 8.4% from 2018 to 2022 and is expected to grow at a CAGR of 7.8% from the year 2023 to 2033.

In 2018, the production of zero proof spirits in the United States was around 200,000 liters. By 2020, the production had increased to around 700,000 liters in the United States. The beverage industry is constantly evolving, with companies always looking for new products to offer consumers. The rise of zero-proof spirits is a response to changing consumer demand and offers a new and innovative product category for companies to explore. The growing demand for the production and consumption of zero-proof spirits by consumers helps the growth of the market.

United Kingdom Zero Proof Spirit Market Analysis :

The market in the United Kingdom is expected to grow to be worth US$ 12.6 million by 2033, with an absolute dollar growth of US$ 6.8 million. The market in the country has grown at a CAGR of 8.7% from 2018 to 2022 and is expected to grow at a CAGR of 8.2% from 2023 to 2033.

In 2020, sales of non-alcoholic spirits in the United Kingdom grew by 35.8% compared to the previous year, reaching a total value of around US$ 24.20 million. The sales of non-alcoholic spirits in 2019 were around US$ 17.47 million. COVID-19 had a significant impact on the growth of the non-alcoholic spirits market, as more consumers looked out for healthier and low-alcohol beverage options while spending more time at home. Additionally, several companies in the United Kingdom have launched their own Zero Proof Spirit products in recent years. The growing demand for lower-alcohol and non-alcoholic beverages in the United Kingdom is expected to help the market grow in the upcoming years.

China Zero Proof Spirit Market Analysis :

In China, the market is expected to grow to be worth US$ 23.2 million with an absolute dollar growth of US$ 14.3 million. The market in China has grown at a CAGR of 11.5% from 2018 to 2022 and is expected to grow at a CAGR of 10% from 2023 to 2033.

In 2018, non-alcoholic beverage sales in China were valued at around US$ 190 million, with a CAGR of 6.8% during the forecast period. The non-alcoholic beverage market in China has been growing rapidly due to growing urbanization which has led to the consumer's growing interest in low or zero-alcohol alternatives.

South Korea Zero Proof Spirit Market Analysis :

The market in South Korea is expected to grow to be worth US$ 10.9 million by 2033, with an absolute dollar growth of US$ 6.5 million. The market in South Korea has grown at a CAGR of 10.7% from 2018 to 2022 and is expected to grow at a CAGR of 9.4% from 2023 to 2033.

In 2020, the total production volume of non-alcoholic beverages in South Korea was around 8.5 billion liters, an increase from the previous year 2018 of about 6.5 billion liters. Overall, the non-alcoholic beverage industry in South Korea is expected to continue to grow in the coming years, driven by changing consumer preferences towards alcoholic drinks consumption in favor of zero-proof spirits.

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Category-Wise Insights

Which Type of Zero Proof Spirit is Projected to Witness Significant Demand?

Zero proof whiskey is projected to witness significant demand with a CAGR of 9.7% from 2018 to 2022 and is expected to grow at a CAGR of 8.9% from 2023 to 2033.

Whiskey alternatives or non-alcoholic whiskey are designed to mimic the flavor and aroma of traditional whiskey without containing any alcohol. It is particularly popular among whiskey lovers who are looking to reduce their alcohol consumption for health and wellness reasons. The growth of the zero-proof whiskey market is also being driven by increasing innovation and product development, with a growing number of companies introducing new and unique offerings to the market.

Competitive Analysis

Key players in the market are Arkay Beverages Inc., Ritual Zero Proof, Optimist Botanicals, Cut Above Spirits, Ghia, Strykk, Drink Monday, Ceder’s., Rasasvada LLC., Svami, Sober, and Pentire Drinks.

A few of the recent developments in the market are :

  • In September 2021, Diageo, the world's largest producer of spirits, announced the launch of a new alcohol-free spirit called "Lunya". The product is made with a blend of botanicals and is aimed at the growing number of consumers who are choosing to drink less alcohol.
  • In May 2021, Arkay Beverages announced the launch of new alcohol-free vodka made from non-GMO corn. The vodka is part of the company's expanding line of non-alcoholic spirits, which includes whiskey, gin, and tequila alternatives.
  • In January 2021, Arkay Beverages announced the opening of a new bottling plant in Mexico, which will allow the company to expand its production and distribution capabilities in North America.

Segmentation of the Zero Proof Spirit Market

  • By Type :

    • Gin
    • Rum
    • Whiskey
    • Tequila
    • Vodka
  • By Packaging Type :

    • Bottle
    • Can
  • By Sales Channel :

    • Online Sales
    • Supermarkets/Hypermarkets
    • Convenience Stores
    • Restaurants & Bars
  • By Region :

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

- FAQs -

What value is the market estimated to reach in 2023?

The global market size is estimated to be valued at US$ 114.5 million in 2023.

What was the global market size for 2022?

The market was reported at US$ 104.3 million in 2022.

What valuation is the market estimated to reach by 2033?

The market is expected to reach a valuation of US$ 271 million by 2033.

What value CAGR did the market exhibit over the last 4 years?

The market registered a CAGR of 9.9% over the last 4 years.

What is the projected market CAGR for Zero Proof Spirit from 2023 to 2033?

The market is projected to witness a CAGR of 9% from 2023 to 2033.

Which type of Zero Proof Spirit is expected to witness significant demand?

The market through zero-proof whiskey is projected to witness significant demand with an expected CAGR of 8.9% from 2023 to 2033.

What is the expected market size in the United States by 2033?

The market in the United States is projected to witness a market size of US$ 85 million and is expected to grow at a CAGR of 7.8% from 2023 to 2033.

Which are the key companies offering Zero Proof Spirit?

Key players in the market are Arkay Beverages Inc., Ritual Zero Proof, Optimist Botanicals, Cut Above Spirits, Ghia, Strykk, Drink Monday, Ceder’s., Rasasvada LLC., Svami, Sober, and Pentire Drinks.

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Zero Proof Spirit Market

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