How Has The Low Alcohol Beverages Market Size Evolved Historically?
The low alcohol beverages market has seen considerable growth due to a variety of factors.
• The market size for low alcohol beverages has seen robust growth in the past few years. It is predicted to increase from $1.33 billion in 2024 to $1.41 billion in 2025, with a compound annual growth rate (CAGR) of 6.0%. This growth noted in the historic period is due to varied factors such as changes in consumer tastes, regulatory efforts, innovative product developments, societal and cultural changes, along with marketing and branding endeavors.
What is the Forecasted Market Size and CAGR for the Low Alcohol Beverages Market Size?
The Low Alcohol Beverages market is expected to maintain its strong growth trajectory in upcoming years.
• The market for low alcohol beverages is projected to experience notable expansion in the coming years, expected to increase to $1.76 billion by 2029 with a compound annual growth rate (CAGR) of 5.5%.
This growth during the forecast period can be linked to various factors including global wellness trends, environmental sustainability measures, demographic shifts, evolution of retail landscape, investment activities and partnerships. The major trends expected to characterize the forecast period are the movement towards health and wellness, innovative product development, societal and cultural evolution, regulatory dynamics, and the preferences of millennials and Generation Z.
What Key Factors and Trends Are Driving The Growth Low Alcohol Beverages Market?
As more people seek to adopt healthier habits, the low-alcohol beverage industry is predicted to grow. This health-oriented approach includes consuming beverages that are suitable for consumption. Many consumers believe that including beneficial beverages in their day-to-day routine can enhance their overall health. Low-alcohol beverages are often promoted as lower in calories and sugar compared to their high-alcohol counterparts, fostering a healthier lifestyle. In particular, the Organic Trade Association states in the Organic Industry Survey of May 2023 that organic drinks were the second-best selling organic category in 2022, contributing to $9 billion in sales—an increase of 4 percent. Organic coffee stood as the best-selling organic beverage, bringing in nearly $2.3 billion in sales, indicating a growth of roughly 7 percent from the year before. Consequently, the growing appetite for healthier drink options is fueling the low-alcohol beverages market's expansion.
What Are The Market Segments In The Low Alcohol Beverages Market?
The low alcohol beverages market covered in this report is segmented –
1) By Type: Low Alcohol Beer, Low Alcohol Spirits, Low Alcohol Wine, Low-Alcohol RTD, Low Alcohol Ciders
2) By Distribution Channel: Store-Based, Non-Store Based
3) By Application: Super markets And Hyper markets, Retailers
Subsegments:
1) By Low Alcohol Beer: Lager, Ale, Stout
2) By Low Alcohol Spirits: Gin, Vodka, Rum, Whiskey
3) By Low Alcohol Wine: Red Wine, White Wine, Sparkling Wine
4) By Low-Alcohol RTD (Ready-To-Drink): Cocktails, Fusions
5) By Low Alcohol Ciders: Traditional Cider, Flavored Cider
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What Trends Are Shaping The Low Alcohol Beverages Market?
The rising trend in the low-alcohol beverage market is product innovation. Many of the leading companies in this market are prioritizing the creation of new products. For example, Kaska, a Finnish low-alcohol beverage company, unveiled Smål Boosted Gin in September 2022. This product distinguishes itself with its high level of botanicals for lower alcohol content. Its design encourages consumption in lesser quantities than your average gin, and it is available in a 200-ml bottle. The suggested serving size is a single small capful per cocktail, and each bottle contains a small 10 ml measuring tool made from fully biodegradable Sulapac, a wood-based material. This method allows a single 200-ml bottle of Smål Boosted Gin to yield 20 gin and tonics with just a small alcohol percentage (around 2%).
Who Are the Key Players In The Low Alcohol Beverages Market?
Major companies operating in the low alcohol beverages market include:
• Anheuser-Busch Companies LLC
• Constellation Brands Inc.
• Heineken NV
• Carlsberg Breweries A/S
• Bacardi Limited
• Asahi Group Holdings Ltd.
• Royal Unibrew AS
• Abita Brewing Company
• Bells Brewery Inc.
• Accolade Wines Ltd.
• Diageo plc
• Molson Coors Brewing Co.
• Beam Suntory Inc.
• The Boston Beer Co. Inc.
• Sapporo Breweries Ltd.
• United Breweries Group
• Big Drop Brewing Co. Ltd.
• Curious Elixirs
• Floreat Wines
• Gnista Spirits
• Athletic Brewing Company
• Carlsberg AS
• BrewDog plc
• Brooklyn Brewery Corp.
• Cervecería Cuauhtémoc Moctezuma
What Are The Regional Insights Into The Low Alcohol Beverages Market?
North America was the largest region in the low-alcohol beverages market in 2024. The regions covered in the low alcohol beverages market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
