Throughout 10 key markets, the no and low alcohol market is anticipated to develop by 4% CAGR via 2028 with zero alcohol driving this progress at 7% CAGR.
Findings from IWSR’s No- and Low-Alcohol Strategic Examine 2024 point out that the zero alcohol section recruits extra new shoppers than its low-alcohol counterpart, with a rise of 61m consumers versus 38m for low-alcohol (2024 vs 2022) within the 10 key markets of Australia, Brazil, Canada, France, Germany, Japan, Spain, South Africa, UK, US.
Susie Goldspink, head of no- and low-alcohol insights at IWSR, stated: “Because the no-alcohol class matures, shoppers need extra than simply an absence of alcohol. They need merchandise that ship on style, complexity, and general ingesting expertise. This evolution is pushing the class additional, prompting manufacturers to innovate and lift the bar by way of high quality and selection.”
The US and Brazil have emerged as key progress markets for the class with anticipated quantity CAGRs between 2024 and 2028 of 18% and 10% respectively.
The expansion is anticipated to come back from the “recruitment of latest shoppers, elevated frequency of consumption and elevated incidence in each markets”.
The report additionally signifies that Gen Z who’ve just lately reached authorized ingesting age usually tend to substitute non-alcoholic drinks, particularly soda and vitality drinks, with zero-alcohol alternate options whereas older age teams usually tend to substitute alcohol, particularly beer and cider.
“Youthful shoppers usually tend to be moderating alcohol, however in addition they drink much less alcohol to start with. These shoppers are inclined to take part in a wider repertoire of no/low classes, and to be extra brand-loyal,” stated Goldspink.
“Older shoppers are much less prone to be moderating however extra seemingly to not drink alcohol in any respect, and their preferences are usually skewed to no/low beer and alcohol model extensions.”
