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Low & no experiencing 'transformative period of growth'

According to the IWSR’s No and Low-Alcohol Strategic Study: “The no-alcohol segment recruits more new consumers than its low-alcohol counterpart, with an increase of 61 million buyers versus 38 million for low-alcohol (2024 vs 2022) in the 10 key markets (Australia, Brazil, Canada, France, Germany, Japan, Spain, South Africa, UK, US).”

It added that new consumers entering the category are “skewing younger than the core buyer demographic across markets”, demonstrating a higher frequency and intensity of consumption.

• Read more: British wine producers celebrate ‘small but good quality crop’ after difficult vintage

Moreover, the report revealed that alcohol consumption among no/low buyers is decreasing, particularly in beer and wine.

The report stated: “Across the 10 key markets, per capita consumption in litres of pure alcohol is at 80% of its level in 2000. As the no/low category develops and more products come to market, other drivers besides alcohol moderation are becoming increasingly important in increasing consumption frequency, particularly in emerging no-alcohol categories. Factors such as taste, availability and brand are increasing in importance in categories outside of no-alcohol beer.”

In terms of consumer trends, RTDs are predicted to have the fastest growth rate through to 2028, with (forecast) volumes rising by 10% between 2024-2028.

Meanwhile, beer is expected to grow at 7% volume (CAGR 2024-2028), “continuing to lead future no-alcohol growth in absolute volume terms”.

In addition, the economies of Brazil, Canada and the US are highlighted as key markets that should see “higher growth in the no-alcohol segment in the near future,” while moderate growth is predicted in Spain, South Africa and Germany.

Susie Goldspink, head of no and low-alcohol insights at the IWSR, commented: “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.

“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. 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.”

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