The IWSR recently released data showing no/low-alcohol consumption will increase by a third by 2026, spearheaded by the growth of no-alcohol products.
Driven by increasing consumer demand, no- and low-alcohol products grew by more than +7% in volume across 10 key global markets in 2022 (including the United States). The pace of growth is expected to surpass that of the last 4 years, with forecast volume CAGR of +7%, 2022-26, compared to +5%, 2018-22.
No-alcohol will spearhead this growth, expected to account for over 90% of the forecast total category volume growth. Improved taste, production techniques, and a diversification of consumption occasions are driving no-alcohol’s dominance over low-alcohol. IWSR expects no-alcohol volumes to grow at a compound annual growth rate (CAGR) of +9% between 2022 and 2026.
“This pattern of avoiding alcohol on certain occasions or altogether is driving no- over low-alcohol growth,” said Susie Goldspink, Head of No- and Low-Alcohol, IWSR Drinks Market Analysis. “Pair this with the rise of functional beverages – often containing ‘mood-enhancing’ adaptogens or nootropics – and the result is a strong outlook for no-alcohol.”
Low-alcohol is expected to grow at a 2% volume CAGR, 2022-26, with much growth driven by the low-alcohol beer and wine categories.
Millennials are the largest age group of no/low alc consumers, and switching between alcohol and no/low has become common. 78% of consumers of no/low products also drink full-strength alcohol; the largest subset (41% of no/low consumers) are classified as "substituters," who choose no/low products when avoiding alcohol on certain occasions.
"Abstainers" who refrain from drinking alcohol altogether account for 18% of no/low consumers, and their numbers are rising in most markets, with younger legal-drinking-aged consumers at the forefront.
The biggest challenge now facing the no/low category is availability: In many markets, no/low products lack visibility in the mainstream on-trade and the choice of products is often limited.
Click here to read the entire IWSR report.
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