Subscriber login Close [x]
remember me
You are not logged in.

No/low consumption to rise 31% by 2024

Published:  10 February, 2021

Total volume sales of no/low alcohol beer, wine, spirits, and ready-to-drink (RTD) products are set to increase 31% by 2024, according to a No-and Low-Alcohol Strategic Study 2021 from IWSR Drinks Market Analysis. 

The prediction follows the buoyant no/low category gaining share within the total beverage alcohol market last year to 3%, said the IWSR, which in the report examined the no/low space in 10 focus countries – the UK Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain and the US. 

“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 IWSR

“Brand owners will have an important role to play in the future development of no/low low alcohol, as increasing the breadth of products available to consumers and their price points will support category growth and broaden its appeal,” he added.

The report also found that while the traditional alcohol market’s greater exposure to bars and restaurants saw it struggle in the wake of mass venue closures, no/low categories had seen “largely positive, albeit muted”, growth, with a volume consumption increase in the 10 markets of approximately 1% in 2020. 

Germany, the largest no/low alcohol market by volume, experienced almost a 5% drop in consumption in 2020, while the US, as the next largest market, is currently the most dynamic, with the no/low segment registering more than a 30% increase.

The beer and cider category dominates the overall no/low market, commanding a 92% share of the total no/low alcohol segment, although no/low beer registered a flat performance for the 2019-2020 period, at +0.5%. 

In contrast, the no/low spirits category – which has only 0.6% share of the no/low market – increased volume sales by 32.7%, largely thanks to new interest in home experimentation among consumers. 

The IWSR predicted that NPD and increasing consumer demand for no/low spirits would see the category experience the largest volume CAGR rate, 2020 to 2024, at approximately 14%. 

No/low RTD volume grew by 10.2%, with no/low wine increasing 4.9%, having made strong gains in the US and the UK. 

The IWSR estimated that both categories would continue on their growth trajectory through to 2024, each expected to command a 7% to 8% volume CAGR 2020 to 2024.

Last month, The Wine and Spirit Trade Association published a new guidance around the labelling of low/no alcohol drinks as a record number of Brits explore the category.