Across 10 key markets, the no and low alcohol market is expected to expand by 4% CAGR through 2028 with zero alcohol driving this growth at 7% CAGR.
Findings from IWSR’s No- and Low-Alcohol Strategic Study 2024 indicate that the zero alcohol segment recruits more new consumers than its low-alcohol counterpart, with an increase of 61m buyers versus 38m for low-alcohol (2024 vs 2022) in the 10 key markets of Australia, Brazil, Canada, France, Germany, Japan, Spain, South Africa, UK, US.
Susie Goldspink, head of no- and low-alcohol insights at IWSR, said: “As the no-alcohol category matures, consumers want more than just an absence of alcohol. They want products that deliver on taste, complexity, and overall drinking experience. This evolution is pushing the category further, prompting brands to innovate and raise the bar in terms of quality and variety.”
The US and Brazil have emerged as key growth markets for the category with expected volume CAGRs between 2024 and 2028 of 18% and 10% respectively.
The growth is expected to come from the “recruitment of new consumers, increased frequency of consumption and increased incidence in both markets”.
The report also indicates that Gen Z who have recently reached legal drinking age are more likely to substitute non-alcoholic drinks, especially soda and energy drinks, with zero-alcohol alternatives while older age groups are more likely to substitute alcohol, especially beer and cider.
“Younger consumers are more likely to be moderating alcohol, but they also drink less alcohol to begin with. These consumers tend to participate in a wider repertoire of no/low categories, and to be more brand-loyal,” said Goldspink.
“Older consumers are less likely to be moderating but more likely not to drink alcohol at all, and their preferences tend to be skewed to no/low beer and alcohol brand extensions.”
