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Non-Alcoholic Wine and Beer Market Size By Product (Beer {By Material (Grapes, Berries/ Apples, Malted Grains, Hops, Yeast, Enzymes), By Type (Alcohol Free [0.0% ABV], Lower Alcohol [0.0% - 1.5% ABV], Lower Alcohol [1.5% - 3.5% ABV], By Technology (Restricted Fermentation, Dealcoholization [Reverse Osmosis, Heat Treatment, Vacuum Distillation]), By Sales Stores (Liquor Stores, Convenience Stores, Supermarkets, Online Stores, Restaurants & Bar)}, Wine { By Material (Grapes, Berries/ Apples, Malted Grains, Hops, Yeast, Enzymes), By Type (Alcohol Free [0.0% ABV], Lower Alcohol [0.0% - 8% ABV], Lower Alcohol [8% - 12% ABV], By Technology (Restricted Fermentation, Dealcoholization [Reverse Osmosis, Heat Treatment, Vacuum Distillation]), By Sales Stores (Liquor Stores, Convenience Stores, Supermarkets, Online Stores, Restaurants & Bar)}), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025

  • Report ID: GMI2776
  • Published Date: Jul 2019
  • Report Format: PDF

Industry Trends

Non-Alcoholic Wine and Beer Market size valued at USD 20 billion in 2018 and is anticipated to witness over 7% CAGR from 2019 to 2025.

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Inclination towards lower alcohol content in several countries due to increasing consumer health consciousness across the world has escalated the non-alcoholic wine and beer market size. Rapid socialization coupled with higher preference in maintaining social status among non-drinkers will stimulate the industry demand. Growing awareness about the health benefits pertaining to non-alcoholic beverage consumption along with increasing product availability is propelling the industry growth.

Strong potential in Islamic populated regions due to religious concerns will drive the alcohol-free beer and wine market size. Liquor manufacturers are adopting numerous strategies for overcoming the cultural prohibitions towards the use of alcohol, particularly in Islamic countries through several alcohol-free wine and beer alternatives. Upsurge in the popularity of these beverages in the Middle East is anticipated to foster new opportunities to the leading manufacturers. Additionally, stringent rules and regulations pertaining to the alcohol consumption age limit in various countries across the globe will fuel the business expansion.

Rising prevalence of cardiovascular diseases among the young and geriatric population owing to consumption of high alcoholic drinks has urged the manufacturers to develop low and alcohol-free wine and beverage variants for increasing their non-alcoholic wine and beer market share. Substantial shifts among the younger populace towards exotic beers & wines and taste preferences will propel the business growth. Additionally, extensive product offerings owing to increasing penetration of global players is augmenting the industry size.

Favorable government policies and standards towards the promotion of alcohol substitute drinks will foster myriad opportunities for industry participants. For instance, in Europe, branding the product as 0% alcohol-free will boost the business growth as non-alcoholic beer is not subject to excise duty. In addition, industry participants that provide food for consumption on premises do not require liquor license to serve beers containing less than 3.5% ABV which will further support the market advancement over the forecast timeframe.

Lower calories in non-alcoholic beer are among the key health benefit supporting the product scope. Increasing popularity of alcohol-free beverages among the millennials owing to the availability for more variants coupled with improved taste, aroma, and mouthfeel driving the product demand. However, high flavor loss owing to the use of temperature sensitive ingredients in brewing along with the use of high-temperature processes may hamper the industry growth over the projected timeframe.

Non-alcoholic Wine and Beer Market, By Product

Beer accounted for more than 80% of the total industry share in 2018. Major factors including increasing disposable income, rising pub culture coupled with rising health-consciousness among the consumers have augmented the segment growth. In addition, increasing product availability through various distribution channels along with restrictions among athletes and sports players for alcohol intake will positively influence industry growth.

Wine segment is anticipated to witness significant gains over 7% from 2019 to 2025. Increase in consumption of mocktails and wine during the festive period coupled with benefits including a reduction in stress levels, controlled cholesterol levels, lowered risk of diabetes & cancer will further augment the segment growth. Increasing product consumption among drinkers who wish to manage their alcohol consumption on their calorie intake will foster new avenues for industry expansion.

Non-alcoholic Wine and Beer Market, By Type

Alcohol-free segment accounted for more than 45% share of the overall non-alcoholic beer market. Increasing demand for alcohol-free beverages in middle eastern countries including UAE, Kuwait, Iran and Saudi Arabia that are permitted by Islamic scholars will positively influence the overall product demand.  Additionally, surging health awareness offering benefits pertaining to alcohol-free beverages consumption, predominantly among pregnant women and sports athletes across the globe will further stimulate the industry demand.

Lower Alcohol (0.0% - 8.0% ABV) segment is anticipated to witness over 8.5% gains from 2019 to 2025. Growing popularity of low alcohol beer due to growing concerns about alcoholism that leads to the prevalence of diseases such as cancer & diabetes is among the major factors boosting market penetration. In addition, key benefits including superior aroma retention and presence of low-calorie content in the product are anticipated to further supplement the industry growth.

Non-alcoholic Wine and Beer Market, By Material

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Malted Grains segment accounted for over 65% of the overall non-alcoholic wine and beer market in 2018. Presence of high enzyme concentration in malted grains provide efficient starch conversion and improved fermentation, this is among major factors boosting material penetration. Additionally, increasing usage of malted grains in breweries owing to numerous health benefits including a reduction in risk of cardiovascular diseases, blood pressure, and support in strengthening bones has urged the manufacturers to utilize these materials in breweries.

Grapes segment is anticipated to witness CAGR of over 7% from 2019 to 2025. Rising consumer awareness towards the benefits of grape wine along with changing preferences towards exotic flavors will proliferate market expansion. Rising popularity of red wine in developed countries including the U.S., Germany, Italy, France, Spain, etc. coupled with health benefits such as maintenance of gut and cardiovascular health is a key factor positively inducing material penetration rate.

Non-alcoholic Wine and Beer Market, By Technology

Dealcoholization segment accounted for over 80% of the overall non-alcoholic wine and beer market in 2018. Upsurge in the demand for low-alcohol and dealcoholized wines across the globe will provide a strong potential outlook for the dealcoholization technology. Moreover, delay in the harvesting of grapes, malted grains, apples, etc. for increasing the flavor content has resulted in elevated Brix values in the material and wines with higher alcohol contents, thereby driving the overall segment growth.

Restricted fermentation segment is anticipated to witness CAGR of over 6.5% from 2019 to 2025. The growth can be attributed to benefits such as limiting extra yeast with adding specific strains offering control over yeast contact time & temperature, thereby restricting the ethanol formation to further boost the segment growth. Increasing use of the restricted fermentation technology for removing the alcohol present in beer and wine will fuel the industry demand.

Non-alcoholic Wine and Beer Market, By Sales Stores

Supermarkets accounted for over 25% of the overall market in 2018. With increasing global investments in supermarket chains, people are more inclined to buy multiple products from a single location. Higher discounts and lower product prices in supermarkets are driving the product demand through this sales network. Increasing urbanization is resulting in higher demand for supermarkets. Australia, UK, and Japan are among the major countries buying wine through the retail network.

Online stores segment is anticipated to witness CAGR of over 7.5% from 2019 to 2025. Sales through online channel are booming owing to busier lifestyles and technological advancements particularly cellular phone. According to Wine Intelligence, China experiences more than 50% of the wine sales through online stores in 2014. In addition, quick home delivery, availability of more choices of product segment with detailed description provides an added advantage to the customer, thereby driving the segment growth.

Non-alcoholic Wine and Beer Market, By Region

Europe accounted for more than 30% of the overall non-alcoholic wine and beer market demand in 2018. Presence of major liquor manufacturers and large-scale breweries in Germany, France, UK, and Italy coupled with the higher adoption rate among the consumers will propel the product demand in Europe. Moreover, rapid advancements in the manufacturing equipment and liquor processing technology owing to a large number of machinery suppliers will further proliferate the segment expansion in the region.

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Asia Pacific is expected to witness the growth of more than 7% by 2025. Factors such as substantial economic development, rising consumer spending coupled with growing health awareness against alcohol consumption are driving the product demand in the region. Rapid emergence of new industry participants owing to the stringent alcohol usage laws particularly in Islamic countries will promulgate the regional demand.

Competitive Market Share

Global non-alcoholic wine and beer market are moderately fragmented due to the presence of medium, large regional and multinational players operating comprehensively. Key industry players include Heineken N.V, Carlsberg, Bernard Brewery, Suntory, Anheuser-Busch InBev, Moscow Brewing Company, Big Drop Brewing, and Erdinger Weibbrau. New product launches, mergers & acquisitions, strategic alliances, product innovation are among the key strategies adopted by the industry participants for enhancing their share. For instance, In March 2018, Heineken and Infor announced their partnerships to improve the production capability and efficiency, with Infor’s cloud-based solution, Heineken will be benefited with smart system integration for better operations. Other notable players include Behnoush Iran, Kirin, Weihenstephan, Pierre Chavin, Arpanoosh, and Coors Brewing Company.

Industry Background

Global non-alcoholic wine and beer industry are driven by rapid technological development and innovations across the beverage sector. Industrialization and changing consumer lifestyle in the emerging economies of China, India, Thailand, Indonesia, Malaysia, and Brazil has stimulated the demand for the product. Rapid improvisations in the brewery industry for alcohol content reduction including improved membrane-based technologies and vacuum distillation is enhancing the quality of the beverage. Moreover, rising demand for low alcohol content in various alcoholic beverages regarding suitability for occasional & health concerned consumers will foster the product portfolio expansion. Developing economies such as Mexico, India, China, Brazil, and Indonesia will substantially impact the product development owing to a larger customer base coupled with increasing preferences for low and no alcohol beverages.

Authors: Kunal Ahuja, Tushar Malkani

Frequently Asked Questions (FAQ) :

The non alcoholic wine and beer industry size is expected to reach USD 30 billion by 2025.

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  • Base Year: 2018
  • Companies covered: 20
  • Tables & Figures: 1495
  • Countries covered: 25
  • Pages: 908
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