ID: MRFR/F-B & N/9058-HCR | April 2021 | Region: Global | 90 pages
The growth of the Low Alcohol Beverages Market for alcoholic drinks witnessed a huge decline due to the strict regulations that are imposed on the vendors, high taxation, increased cost of raw materials which are used in the production process, and the different campaigns that were held against the consumption of alcohol. This is a major reason for many people to switch to low alcohol beverages. This switch has made the market for low alcohol beverages to grow rapidly. Now, low alcohol beverages have become quite popular and are in great demand.
The Low Alcohol Beverages Market is growing at a rapid pace for a couple of years and in the year 2020, the low alcohol beverages industry was valued at USD 1245.02 Mn. This growth is estimated to increase more and reach a higher valuation if the CAGR is measured at 4.30% during the forecast period 2021-2028. During the COVID-19 pandemic, this market witnessed huge sales in the volume of low alcohol beverages due to panic buying.
The outbreak of the COVID-19 pandemic affected various industries worldwide. But it created great opportunities for the Low Alcohol Beverages Market. During the COVID-19 pandemic, the governments across various countries imposed lockdown. Hence, all the retail stores were ordered to be closed. This made the people start panic buying low alcohol beverages in bulk. Also, such beverages are also healthier to drink during COVID-19. During this time, the eCommerce platforms stood as a boon to the consumers as they started delivering low alcoholic beverages to the customers. Many online alcohol delivery service providers witnessed a huge increase in their sales during the pandemic. However, the growth in the preference of the consumers towards healthier drinks is estimated to create a good impact on the alcohol consumption trends during the forecast period.
Alcohol is affecting the health of the people. Hence, there is a certain rise in awareness regarding proper drinking habits among consumers. This resulted in driving the growth of the market for low alcohol beverages. Most people get attracted to the packaging style. The companies are constantly implementing innovative packaging styles along with effective marketing strategies to market their products. The emergence of food-based eCommerce platforms is another market driver responsible for enhancing the low alcohol beverages market growth.
There is a huge demand for less alcohol content beverages for the increasing concern of health issues among the people. Rising demand for low and lighter carbohydrate content beverages is posing as great opportunities in the market for low alcohol beverages.
Alcoholic beverages are having great availability in the market but when it comes to non-alcoholic beverages, there is very limited availability. This is a major restraining factor for the low alcohol beverages market. The companies are trying to launch new products in the market that can increase the availability of low alcohol beverages.
Along with various key drivers that are responsible for enhancing the growth of the low alcohol beverages market, there are also a few challenges that the market has to overcome in order to avoid incurring a loss. The definition of low alcohol beverages is different in every country and so people often get confused. This is a major challenge that most of the low alcohol beverage industries may face. However, it is expected that the market will work on the opportunities and overcome the challenges soon.
The low alcohol beverages market witnessed huge growth in the last few years. The demand for low-calorie alcohol beverages has increased among people due to the various health issues and concerns regarding the consumption of alcohol. The key players are introducing various new products and implementing excellent marketing strategies to attract customers towards their products.
Value Chain Analysis
Alcohol is very common among Europeans and Americans. Hence, there has been a specific increase in the drinking habits of the people. The people are more concerned about the health issues that are faced by them and so eagerly participating in switching their drinking habits to non-alcoholic beverages or low alcohol beverages. The value of the low alcohol beverages market will increase rapidly due to the rise in awareness regarding health problems. Due to the emergence of e-commerce platforms which also sell low alcohol beverages, the market for low alcohol beverages will witness a specific rise in its growth during the forecast period.
The low alcohol beverages market size is segmented into two major categories. They are: by distribution channel and by type. The RTD is the sub-segment under type segment which is currently dominating the market. Under the distribution segment, the store-based segment is expected to dominate the market during the forecast period. Here are the segments of the market for low alcohol beverages along with its sub-segments.
By Distribution Channel,
The global low alcohol beverages market is divided into five major regions which include North America, Europe, Latin America, Asia Pacific, and the Middle East and Africa. Europe, among all these five regions, has been dominating the global low alcohol beverages industry for a long time due to the shift in the habits of the Europeans from drinking alcoholic beverages to drinking non-alcoholic beverages or low alcoholic beverages. This shift is due to the increase in the concerns for various health issues that are faced by the people in that region. Another reason for the dominance of this market in that region is due to the presence of the key players in that area.
North America is another region that is expected to hold the largest low alcohol beverages market share due to the rise in awareness regarding the various health issues which happen due to the high intake of alcoholic beverages among the people. A sudden increase in demand for the different types of low alcohol content beverages among the people in America is also a great opportunity for the low alcohol beverages industry.
Diageo Plc, United Breweries Group, Accolade Wines, and Bacardi Limited are some of the key players that are responsible for adopting different marketing strategies in order to boost the market share for low alcohol beverages. The companies are trying to cope up with the low alcohol beverage market trends to stand out in the competition. Brand new products with a little innovation are being developed to strengthen their position in the low alcohol beverages market.
The companies are forming partnerships with other strong competitors to expand their brand position in the market and also getting involved in agreements and joint ventures. They are creating their product portfolio depending on the demand of the customers in order to sustain the heavy competition. Below mentioned are some key companies that are constantly implementing their strategies according to the new trends.
List of Key Companies:
There are no recent developments.
The low alcohol beverages market research report covers the current scenario along with the various growth features of the market which include drivers, opportunities, restraints, and challenges. The report has been prepared based on a detailed market analysis which also covers the competitive analysis, regional analysis, and segmentation overview. The impact of the COVID-19 pandemic on the low alcohol beverages industry is also outlined in this report.
|Market Size||USD 889.7 million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Distribution Channel , Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Anheuser Busch InBev. Carlsberg Group Beam-Suntory Constellation Brands Diageo Plc Heineken Holding Nv Accolade Wines United Breweries Group The Brown–Forman Corporation Bacardi Limited|
|Key Market Opportunities||Increasing demand for lighter, low carbs and alcohol content beverages|
|Key Market Drivers||Growth of the organized retail sector in developing countries|
Frequently Asked Questions (FAQ) :
The size of the market for low alcohol beverages is expected to rise rapidly and reach a specific valuation if the CAGR is measured at 4.3% during the forecast period.
The definition of low alcohol is different in different countries and hence people often get confused with the content of low alcohol in the drinks. This is a major challenge that the low alcohol beverage market faces. However, it is expected that the market will overcome its challenges and start working on its opportunities.
Among all the types of segments, the popularity of RTD beverages has been rising for a few years. It is also expected to hold the largest markets share during the forecast period and become the major factor responsible for the growth of the market. The manufacturers are also trying to implement this product type and attract customers by applying effective marketing strategies.
Carlberg Group, Diageo Plc, Accolade Wines, Bacardi Limited, Beam Suntory, Brown-Forman Corporation, and Constellation Brands are some of the main players that are responsible for enhancing the market growth of the low alcohol beverages market.