Low Alcohol Beverages Market

Growing investment in low alcohol beverages to boost the market growth

Rising investments by producers of low alcohol beverages to improve product quality, variety, and flavor are also anticipated to favorably influence market growth throughout the forecasted period. For instance, Radico Khaitan announced introducing cocktail mixes with a 4.8% alcohol content that will be marketed in cans in October 2022. According to the manufacturer, three flavors of the product would be offered: cola, cosmopolitan, and mojito. The company's goal in launching this product is to address the market gap for low alcohol beverages . 

In addition, the rapid growth in the consumption of low alcohol beverages by young people, particularly in Asia Pacific nations like India and China due to their large populations and consumer bases, is likely to contribute significantly to the market growth over the coming years. "Nolo" drinks, also known as no and low-alcohol drinks, are becoming increasingly popular among 18 to 24-year-olds. Research by British craft beer found that one-third of young individuals drank alcohol and increased their intake of high-ABV beers to relieve their thirst. 

Government regulations promoting responsible drinking and the reduction of alcohol-related harm are likely to bolster the Global Low Alcohol Beverages Market Industry. Various countries are implementing policies that encourage the production and consumption of low alcohol products. For instance, initiatives aimed at reducing binge drinking have led to increased availability and marketing of low alcohol beverages. This regulatory environment not only supports consumer choice but also incentivizes manufacturers to innovate within this segment. As a result, the market is expected to grow significantly, with projections indicating a rise to 1509.2 USD Million by 2035.

The increasing awareness of health and wellness among consumers appears to be a primary driver for the Global Low Alcohol Beverages Market Industry. As individuals seek to reduce alcohol consumption while maintaining social experiences, low alcohol options provide a viable alternative. This trend is particularly evident among younger demographics, who prioritize healthier lifestyles. The market is projected to reach 978.8 USD Million in 2024, reflecting a growing preference for beverages that align with health-conscious choices. This shift suggests that brands focusing on low alcohol content may capture a larger share of the beverage market, catering to evolving consumer demands.

The expansion of product offerings within the Global Low Alcohol Beverages Market Industry appears to be a crucial factor driving consumer interest. Manufacturers are increasingly introducing a variety of flavors and styles, ranging from low alcohol beers to wines and spirits. This diversification caters to a broader audience, including those who may not typically consume alcoholic beverages. For example, the introduction of craft low alcohol beers has gained traction, appealing to consumers seeking unique taste experiences without the effects of higher alcohol content. This trend is likely to contribute to a compound annual growth rate of 4.02% from 2025 to 2035.

The Global Low Alcohol Beverages Market Industry is poised for substantial growth, with projections indicating a market size of 978.8 USD Million in 2024 and a potential increase to 1509.2 USD Million by 2035. This growth trajectory suggests a compound annual growth rate of 4.02% from 2025 to 2035, reflecting the increasing consumer demand for low alcohol options. As health consciousness rises and social trends evolve, the market is likely to expand, driven by innovative product offerings and regulatory support.

Shifts in social norms and lifestyle choices are influencing the Global Low Alcohol Beverages Market Industry. As more consumers embrace moderation and seek alternatives to traditional alcoholic drinks, low alcohol beverages are becoming increasingly popular in social settings. This trend is particularly pronounced among millennials and Gen Z, who often prioritize experiences over consumption. Events such as brunches and social gatherings now feature low alcohol options prominently, reflecting changing attitudes towards drinking. This cultural shift is expected to drive market growth, as consumers opt for beverages that align with their lifestyle choices.

The rising emphasis on sustainability and ethical consumption is shaping the Global Low Alcohol Beverages Market Industry. Consumers are becoming more discerning about the environmental impact of their purchases, leading to a preference for brands that prioritize sustainable practices. Low alcohol beverages, often produced with fewer resources and lower carbon footprints, resonate with eco-conscious consumers. Brands that adopt sustainable sourcing and production methods are likely to attract a loyal customer base. This trend not only aligns with consumer values but also positions low alcohol products favorably in a competitive market.

By Region, the study provides market insights for low alcohol beverages into North America, Europe, Asia-Pacific, and the Rest of the World. The North America low alcohol beverages market accounted for USD 408.204 million in 2021 and is expected to exhibit a significant CAGR growth during the study period. Due to the region's high concentration of industrialized economies, early adoption of cutting-edge technology, and creative manufacturing techniques.

The United States' exceptional growth in the market for low alcohol beverages for diverse flavored and low-alcohol hard seltzers and the growing public awareness of the health hazards associated with heavy alcohol usage is projected to present profitable growth prospects for beverage manufacturers in the region.

Further, the major countries studied in the market report for low alcohol beverages are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: LOW ALCOHOL BEVERAGES MARKET SHARE BY REGION 2024 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The Asia-Pacific Low Alcohol Beverages Market is expected to grow at the fastest CAGR from 2022 to 2030. The presence of numerous undeveloped markets, rising consumer disposable income, and a sizable population can all be credited with expanding the regional market for low alcohol beverages. Due to the easy accessibility of cheap labor and raw materials, the region is primarily consolidated with various growing economies, including India, China, Malaysia, and Indonesia. Additionally, expanding government programs and attempts to assist the low-alcohol beverage market in these nations are luring international market players to set up shops in the area.

Moreover, the China Low Alcohol Beverages market held the largest market share, and the India Low Alcohol Beverages market was the fastest-growing market in the Asia-Pacific region.

Europe's Low Alcohol Beverages market accounts for the third-largest market share. The demand for low-ABV beer has increased in recent years due to customers choosing to consume less alcohol, which has had a favorable effect on the local market for low alcohol beverages. Further, the Germany Low Alcohol Beverages market held the largest market share, and the UK Low Alcohol Beverages market was the fastest-growing market in the European region.

Major market companies are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for low alcohol beverages . With significant market developments like new product releases, market developments, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and survive in a market that is becoming more competitive and growing, competitors in the low-alcohol beverage industry must provide affordable products.

Manufacturing locally to cut operational costs is one of the main business methods used by producers in the worldwide low alcohol beverages industry to benefit customers and increase the market for low alcohol beverages. The low alcohol beverages sector has recently offered some of the most important advantages. The low alcohol beverages industry, major players such as Athletic Brewing Co, DrinksDeli India and others are working on expanding the market demand for low alcohol beverages by investing in research and development activities.

A non-alcoholic beer manufacturer, Athletic Brewing Co., is committed to producing excellent artisan brews without cutting corners. In March 2022, Athletic Lite, a new non-alcoholic beer from The Athletic Brewing Company, has minimal calories and carbohydrates. Athletic Lite is a cool beverage that may be taken at any time of the day. It is brewed with organic grains and contains only 25 calories and 5 grams of carbs per 12 ounce can.

Also, the top artisanal beverage products from India are all housed under one roof by DrinksDeli India. We can satisfy all of your cravings in one place. In August 2021, the debut of its zero-alcohol beverage online platform in India was announced by DrinksDeli, an online portal that deals in non-alcoholic beverages. Health drinks, sodas and tonics, cocktail mixers, coffees and drinkware, syrups, and teas are the six categories under which the company will market its goods.