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Low alcohol beverage market is expected to exhibit CAGR of 4.72% over the forecast period, at such as growth rate, the market is likely to attain valuation of USD 1314.20 million by 2030. The market valued at USD 938.4 million in 2021.
The low-alcohol beverages market is influenced by a combination of factors that collectively shape its dynamics, growth trajectory, and consumer adoption. One of the primary market factors is the growing global trend towards health and wellness. As consumers increasingly prioritize healthier lifestyles, there is a corresponding demand for beverages that align with these lifestyle choices. Low-alcohol beverages, positioned as a healthier alternative to traditional alcoholic options, capitalize on this trend, appealing to individuals seeking a balance between enjoying social occasions and making mindful choices for their well-being.
Changing consumer demographics play a crucial role in the market factors of low-alcohol beverages. Younger generations, particularly millennials and Generation Z, are driving the shift towards more mindful drinking habits. This demographic cohort is characterized by a greater emphasis on experiences, health-conscious decisions, and a desire for products that align with their values. The market factors reflect an evolving consumer base that seeks alternatives to conventional alcoholic beverages, contributing to the growing popularity of low-alcohol options among younger demographics.
Product innovation is a pivotal factor shaping the low-alcohol beverages market. The industry's response to consumer demand for diverse and appealing choices has led to the development of innovative formulations and creative blends. This includes the creation of sophisticated non-alcoholic cocktails, alcohol-free beers with enhanced flavors, and reduced-alcohol wines that maintain the complexities of their alcoholic counterparts. Product innovation not only addresses consumer preferences but also contributes to reshaping the perception of low-alcohol beverages as flavorful, enjoyable, and suitable for various occasions.
Regulatory considerations significantly influence the market factors of low-alcohol beverages. The regulatory landscape around alcohol content, labeling, and marketing plays a critical role in determining how brands position and promote their low-alcohol offerings. As governments address changing consumer preferences and health concerns, regulations impact the industry's ability to introduce and market low-alcohol products. Navigating these regulations requires adherence to standards while still allowing room for innovation, contributing to the complex dynamics of the market.
Consumer education and awareness campaigns are integral market factors for low-alcohol beverages. Brands and industry stakeholders actively engage in communication efforts to educate consumers about the benefits of low-alcohol options, including reduced calorie content, potential health advantages, and the ability to enjoy social occasions without the effects of higher alcohol consumption. These campaigns aim to dispel myths surrounding low-alcohol beverages and increase consumer understanding, fostering greater acceptance and adoption of these alternatives.
Economic factors, including disposable income and consumer spending patterns, influence the market dynamics of low-alcohol beverages. While some low-alcohol options may be positioned as premium or specialty products, economic conditions impact consumer willingness to invest in these alternatives. The affordability and accessibility of low-alcohol beverages are crucial factors, with economic prosperity potentially driving demand for premium options, while economic downturns may see consumers opting for more budget-friendly choices.
Retail dynamics and distribution channels are key market factors shaping the accessibility of low-alcohol beverages. The availability of these beverages in various retail settings, including supermarkets, liquor stores, bars, and online platforms, influences consumer reach. The convenience of online shopping, coupled with the ability to access a diverse range of low-alcohol choices, has contributed to market growth. Retail partnerships and strategic distribution networks play a significant role in ensuring that low-alcohol options are widely available, contributing to their integration into mainstream consumer choices.
the market factors influencing low-alcohol beverages are multifaceted, encompassing health and wellness trends, changing consumer demographics, product innovation, regulatory considerations, consumer education, economic conditions, and retail dynamics. The intersection of these factors creates a dynamic landscape for the industry, fostering growth, innovation, and increased acceptance of low-alcohol alternatives. As these market factors continue to evolve, the low-alcohol beverages market is poised to adapt and thrive in response to shifting consumer preferences and the broader dynamics of the beverage industry.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 978.75 Billion |
| Growth Rate | 4.72% (2022-2030) |
Low Alcohol Beverages Market Highlights:
Global Low Alcohol Beverages Market Overview
Low Alcohol Beverages Market Size was valued at USD 938.4 million in 2021. The low alcohol beverages market industry is projected to grow from USD 978.75 million in 2022 to USD 1314.20 million by 2030, exhibiting a compound annual growth rate (CAGR) of 4.72% during the forecast period (2022 - 2030). The quick shift in customer preferences towards high-quality, creative, and nutritious low alcohol beverages is the key market driver enhancing the low alcohol beverages market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Low Alcohol Beverages Market Trends
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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 .Â
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.Â
The consumer interest in health and wellness is expected to continue to grow, and consumer's awareness of the negative health effects of heavy alcohol consumption is also expected to grow. These two main factors are anticipated to significantly fuel the market's expansion for low alcohol beverages over the forecasted period. Since these factors collectively contributed to boosting the market growth and demand, the demand and penetration for improved high-quality, low-alcohol drinks to maintain their health goals have prompted market players to create new products. Therefore, such factors have enhanced the Low Alcohol Beverages market CAGR globally in recent years.
However, Drinking with awareness is becoming increasingly popular, and young people want to develop responsible drinking practices implants are another factor driving the growth of the Low Alcohol Beverages market revenue.
Low Alcohol Beverages Market Segment Insights
Low Alcohol Beverages Type Insights
The Low Alcohol Beverages market segmentation, based on type, includes wine, beer, and spirits. The Wine segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is because more people are adopting better lifestyles and becoming aware of these drinks' various benefits. Additionally, the availability of various tastes and the calming flavor of these goods are attracting a lot of interest from young consumers, adults, and women, which has set the way for strong segment growth. Hence, the rising use of beer implants in low alcoholic beverages positively impacts market growth for low alcohol beverages.
Low Alcohol Beverages Distribution Channel Insights
Distribution channels have bifurcated the Low Alcohol Beverages market segmentation into store-based and non-store-based. The non-store-based segment dominated the Low Alcohol Beverages market data in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The rapid development of various online shopping platforms due to the numerous services and facilities offered to consumers, including the easy availability of various brands, convenient payment methods, and free home delivery, are significant factors supporting the segment's growth globally. The use of segment markets is also anticipated to increase due to the low entry hurdles for new businesses on this platform and the rising number of new market participants for low alcohol beverages who are releasing their items through different eCommerce platforms like Amazon, Walmart, and eBay.
Figure : Low Alcohol Beverages Market, by Distribution Channel, 2021 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Additionally, stored-based was the fastest-growing segment. Due to the availability of a broad selection of products from many international companies under one roof, the chance to visually inspect things, and a superior shopping experience compared to other channels. Many big retailers, like Target, Aldi, Walmart, and Whole Foods, also concentrate on growing their product selections in low-alcohol regions.
Low Alcohol Beverages Regional Insights
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 2021 (%)
Source: Secondary Research, Primary Research, MRFR 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.
Low Alcohol Beverages Key Market Players & Competitive Insights
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.
Key Companies in the Low Alcohol Beverages market includes
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Bacardi Limited
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United Breweries Group
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Beam- Suntory
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Anheuser Busch InBev.
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The Brown-Forman Corporation
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Accolade Wines
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Carlsberg Group
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Diageo Plc
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Constellation Brands among others
Low Alcohol Beverages Industry Developments
January 2022:Â In a joint announcement with her business partner Morgan McLachlan, Katy Perry debuted her new beverage line, De Soi. The three flavors of the new beverage product line are golden hour, purple lune, and champignon dreams. Online shoppers can already acquire 750ml bottles of De Soi.
February 2021:Â Big Drop introduced Chicago-Brew Non-Alcoholic Beers to the American market. Online sales of new NA beers are now available nationwide and in Illinois, Michigan, and Minnesota. All Big Drop beers are naturally non-alcoholic and have less than 0.5 percent alcohol by volume, thanks to an innovative brewing process that uses specialized yeast and temperature management.
Low Alcohol Beverages Market Segmentation
Low Alcohol Beverages Type Outlook
- Wine
- Beer
- Spirits
Low Alcohol Beverages Distribution Channel Outlook
- Store-based
- Non-store based
Low Alcohol Beverages Regional Outlook
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North America- US
- Canada
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Europe- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World- Middle East
- Africa
- Latin America
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