The no-alcohol share of the total beverage alcohol market is expected to grow to nearly 4% by 2027 according to a newly published report from IWSR.

Consumption in the category’s ten leading markets, which account for 70% of global volumes, grew by 5% in 2023 and is forecasted to grow by 6% CAGR until 2027.

“As no- and low-alcohol becomes a more established part of the beverage alcohol landscape, growth is slowing after a peak in 2020 to 2021 – but the category is poised for robust gains in the coming years, spearheaded by no-alcohol and persistently strong recruitment levels,” said Susie Goldspink, head of no- and low-alcohol insights, IWSR.

Almost a fifth (17%) of the no-alcohol category’s drinkers in the last year were new entrants, with the figure at 16% for the low-alcohol market, and while younger legal drinking age consumers are entering the category most across the markets, millennials remain the largest age cohort.

“In terms of growth opportunities, there is now a clear disparity between more mature and lower-penetration markets”, said Goldspink.

“Countries that are more established in no/low tend to skew towards older consumers, higher alcohol avoidance rates and lower no/low repertoires. Higher-growth markets generally have lower no/low penetration, and a greater share of younger legal drinking age consumers who have a higher tendency to moderate and participate more in no/low categories”.

The IWSR reports that no-alcohol now accounts for two-thirds of the no- and low-alcohol category volumes, with 72% of that segment attributed to beer and cider.

@drinksint.com

image: Pexels | Susanne Jutzeler, suju-foto