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What is driving the growth of the low and no alcohol sector? Summary
- The global non-alcoholic beverages market is now worth $1.4 trillion
- Market for low-alcohol growing at a CAGR of 5.95% to $28.5 billion
- Gen Z and Millennials are more likely to choose alcohol-free social options
- Beer, wine and spirits product innovation is outpacing alcoholic launch rates
- Alcohol-free bars, sober events and other cultural shifts are gaining in popularity
No- and low alcohol sectors are booming.
If there were ever any doubts, attending one of the numerous industry-wide events that are taking place around the world would remove them.
Over the last twenty years, this industry has seen a rapid rise.
According to market analysts, Precedence Research, the non-alcoholic beverages alone are worth $1.4tn ($1.2tn EUR) and is growing with a strong CAGR of 7.34%.
The low-alcoholic beverages market, however, is valued at $21.4 billion, a much smaller but still significant amount. Its 5.95% CAGR will take it up to $28.5bn in 2030, according to Mordor Intelligence.
What non-alcohol and low-alcoholic drinks are the consumers purchasing? What do consumers want for the future? Take a look at some of the key trends that are shaping this space.
(Image: Getty/Peopleimages) The global low-and-no-alcohol market is worth $1.49tn. (Image: Getty/Peopleimages)
No- and Low-Alcohol Trends
Healthy living
Now, mindful drinking has become mainstream. Customers are choosing low and no alcohol options in order to avoid negative health effects associated with drinking.
Keurig Dr Pepper is a Keurig product. In the State of Beverages Trend Report 2025, Gen Z and Millennials lead the way in eliminating alcohol from social situations, with more than 60% choosing alcohol-free beverages.
The “sober-curious” movement is now a way of life, and not just a trend.
Drinkers also prefer juices, shakes and smoothies fortified by functional ingredients to reap a host of benefits such as improved sleep, mental clarity and physical fitness.
Product development and innovation
Innovation in all categories is being driven by the rapid growth of no-and-low-cost products.
Innova Market Insights, industry analysts, have found that non-alcoholic beverages are growing in Europe five times as fast as alcoholic drinks. This means no- or low-alcohol beverage launches make up about 11% of all alcoholic drink launches.
Launch of the non-alcoholic alcohol category in number:
- Beers that are non-alcoholic (57%)
- Flavored alcoholic beverages (18%)
- Wine (15%)
- Spirits (10%)
We found that the growth in the number of product launches for flavoured non- and low alcohol beverages over the past five years has been similar to the growth seen by their alcoholic counterparts.
Wine and spirit in the low and no alcohol sector has seen a greater increase than its alcoholic counterparts.
As the trend grows, we’ve seen start-ups with low and no funding, like Three Spirit, CleanCo, and Pentire, become household names.
Heineken and Stella Artois have entered this sector, taking advantage of its success.
Culture shifts and social redefinition
Alcohol is increasingly seen not as a necessity for socializing and celebrating, but rather an optional choice.
In cities all over the world, this cultural shift has led to an increase in alcohol-free venues, sober events and communities that promote mindful drinking.
The movement is driven by the younger generation and amplified through social media. It reflects an overall desire to change the way the world celebrates and socializes.
Alcohol is increasingly considered optional and not essential to social connection or celebration. (Image: Getty/Flashpop)
The future of no- and Low-Alcohol Industry
The no- and low alcohol sector has entered a new age of opportunities, as consumer demand shows no sign of slowing down.
The next generation of brands will be those that focus on innovation, authenticity and wellbeing-oriented experiences.
Untapped categories exist – functional drinks that help you sleep or focus to high-end offerings that are as complex and ritualistic as traditional spirits.
As the number of venues that are alcohol-free and socially sober increases, opportunities for partnership, marketing and community building also increase.
As younger generations redefine social drinking, the alcohol industry can shape a future that is more health-conscious and inclusive.
The rise of low and no alcohol presents an opportunity for producers, retailers and hospitality leaders to influence the future of drink. Industry players who embrace innovation, invest in wellness products and respond to changing consumer preferences can be at the forefront of this movement, which is redefining socialising for the better.