Low Alcohol Beverages Market Research Report— Global Forecast till 2028

Global Low Alcohol Beverages Market Research Report: Information by Type (Beer, Wine, Spirits, and RTD), by Distribution Channel (Store-Based and Non-Store-Based), by Region (North America, Europe, Asia-Pacific, Rest of World) – Forecast till 2028

ID: MRFR/F-B & N/9058-HCR | April 2021 | Region: Global | 90 pages

Market Scenario


The global low alcohol beverages market was valued at USD 889.7 million in 2020 and is expected to exhibit a CAGR of 4.3% from 2021 to 2028.


Low alcohol beverages are becoming popular in the present times. These beverages are becoming mainstream product owing to the cultural shift toward wellness. Strong shift in consumer awareness, especially among the millennial population owing to the health risk associated with the consumption of high alcohol content beverages have resulted in growing popularity of low alcohol beverages. A major section of the global population is quitting excessive alcohol consumption and are opting for low ABV beverages. This is evident from continuous decline of alcohol consumption in many European countries and in the US. Additionally, advent of many low ABV beverages such as hard seltzers has resulted in growing popularity of low alcohol content beverages. Rising popularity of many e-commerce channels have also augmented the growth of the market.


Post the Covid-19 outbreak, sales of low alcohol beverage has increased substantially across the globe. Panic buying due to closure of retail outlets has been a major factor behind this sudden surge in demand. Additionally, consumers consider low ABV beverages to be healthier option during the Covid-19 pandemic. Many e-commerce channels have proved to be a boon during the pandemic. End consumers have well accepted the move as it reduces the chances of getting infected by the virus. This is evident from steep increase in online sales of alcohol. Drizly, an online alcohol delivery service provider in the US, reported over 300% increase in sales during initial lockdown phase.


Market Synopsis


The global low alcohol beverages market has witnessed exponential growth over the last couple of years. The outbreak of the Covid-19pandemic has created lucrative growth opportunities for low alcohol beverage manufacturers across the globe. Growing consumer preference toward healthier drinks instead of high alcohol content beverages is anticipated to create a lasting impact on alcohol consumption trends in coming years.


Market USP


Increasing demand for lighter, low carbs and alcohol content beverages


Market Drivers



  • Rising consumer awareness for mindful drinking habits: Rising consumer awareness regarding the harmful effects of consumption of high alcohol content beverages have been a major factor boosting the low alcohol beverages market. This is evident from continuous decline in alcohol consumption across many European countries and in the US since last couple of years. The millennial population across the globe has been major factor behind this sudden shift in consumer taste and preference.

  • Effective marketing strategies and packaging styles

  • Growth of the organized retail sector in developing countries

  • The advent of food-based e-commerce platforms


Market Restraints

  • Limited availability


Segmentation


By Type



  • Beer

  • Wine

  • Spirits

  • RTD: Popularity of low alcohol RTD beverages has been increasing at an exponential rate over the last couple of years. Premiumization is the key driving factor behind the growth of RTD alcoholic beverages. Manufacturers are prioritizing on new product developments, flavors, effective marketing strategies, packaging styles to lure customers for excepting new alcohol trends.


By Distribution Channel



  • Store-Based

  • Non-Store Based: Popularity of e-commerce channels are increasing for purchase of low alcohol beverages across the globe. Post Covid-19 outbreak, e-commerce distribution channel sales have increased significantly because of closure of many retail stores. However, the outbreak is anticipated to create a lasting impact on such e-commerce channels as preference for such channels is expected to increase in many emerging countries as well. The availability of varied product offerings at reasonable rates are key features that is expected to make online distribution channel, a more favorable option.


By Region



  • North America: North America is anticipated to one of the fastest growing markets for low ABV beverages in the upcoming years. Rising consumer awareness regarding the health concerns associated with high alcoholic beverages have resulted in strong popularity of low alcohol beverages. Additionally, the sudden surge in demand for various types of low alcohol content hard seltzers in the US is further anticipated to create lucrative opportunities for such beverage manufacturers in coming years.

  • Europe: Europe dominated the global low alcohol beverages market in 2020 and is expected to remain dominant during the review period. Shift in consumer drinking habits toward healthier drinks have resulted in its dominance. Moreover, the presence of key global alcohol companies in the region has resulted in its dominance. Additionally, strong e-commerce infrastructure has also resulted in rising popularity of the low alcoholic beverages in the region.

  • Asia-Pacific

  • Rest of the World


Key Players



  • 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



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 889.7 million
  CAGR   4.3%
  Base Year   2021
  Forecast Period   2028
  Historical Data   2018
  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