Low Alcohol Beverages Market Set to Grow during the forecast period
Market Forecast
In 2020, the global low alcohol beverages
market was valued at USD 889.7 million and is expected to
register a CAGR of 4.3% between 2021 and 2028.
Low alcohol beverages
include drinks that has an “alcoholic strength by volume” (ABV) of between
0.05% and 1.2%. Low alcohol beverages are going mainstream and is set to become
serious contenders in the overall beverage industry in next couple of years.
One of the key driving forces behind its growth is rising consumer awareness,
especially among young millennials, about the health risks associated with excessive
alcohol intake. Consumers are becoming increasingly conscious about their
physical and mental health, leading to a decline in the consumption of high ABV
beverages. The American population is increasingly giving up alcoholic
beverages, prompting some of the top brewers and liquor companies to push
beyond their traditional alcohols and look for energy drinks, non and low
alcoholic beverages. This is evident from the steep decline in beer consumption
in the US in 2017 (~1%), 2018 (~2.3%) and 2019 (~3.7%) respectively, according
to MRFR analysis. Additionally, low alcohol beverages proves to be a great way
of reducing the consumption rate of high alcohol content beverages. Major
brewers and liquor manufacturers are utilizing this lucrative opportunity. This
leads to the launch of extensive ranges of low- and non-alcoholic beers by
brands such as Budweiser and Heineken.Brewer AB InBev’s—one of the largest
brewing companies in Europe—generates over 8% of its total revenue from zero
and low-alcohol beers and is expected to increase its share of sales up to 20%
till 2025.
Additionally, the
outbreak of COVID-19 has resulted in a surge in demand for low alcoholic
beverages across the globe. Instead of steep decline in sales, low alcohol
beverage category has reinforced its category importance. People across the
globe, especially the millennial population, are making healthier choices and
the outbreak of Covid-19 has further augmented the sales of these beverages.
According to MRFR analysis, a sizeable share of boom of low alcohol beverage
was as a result stockpiling. For instance, in the UK, post Covid-19 outbreak,
sales of low and non-alcoholic beverages soared by over 32% in March, 2020
covered to previous year. The country has stockpiled over USD 1.42 million of low
and non-alcoholic drinks amid the onset of Covid-19. However, this surge is
only for limited period of time and is anticipated to normalize once the
outbreak eases.
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Market USP
Increasing demand for
lighter, low carbs and alcohol content beverages
Growth Opportunities
in the Market
Growing demand for
low-alcohol RTD beverages: Low-alcohol RTD beverages are becoming trending in
the market. Consumers are embracing such beverages as they are lighter, and
have low carbs and alcohol content. Rising health consciousness, especially
among the millennial population has led to the popularity of low alcohol RTD
beverages. Additionally, convenience in handling, advent of more sophisticated
flavors, new packaging styles, and effective marketing strategies are few other
factors propelling its growth in recent years. Low-alcohol RTD beverage sales
increased amidst the Covid-19 outbreak. Stockpiling and panic buying has been
major factor behind its increase. Leading alcohol beverage companies are
quickly shifting its focus toward consumer needs and are adding more functional
ingredients into their low alcohol RTD beverages.
Rising popularity of
online distribution channels: Popularity of online sales of low-alcohol beverages
is increasing across the globe. Presence of abundant product variations at
reasonable rates have resulted in the growing popularity of the online channel.
Additionally, post Covid-19 outbreak, e-commerce channels have witnessed
exponential growth rate. According to MRFR analysis, e-commerce channels have
witnessed over 40% increase in sales since March 2020. For instance, due to the
closure of bars and pubs in the UK, online sales of no and low alcohol
beverages have surged since March 2020 by over 20%, according to MRFR analysis.
Hence, the global pandemic is expected to leave a permanent increase in demand
for online sales of alcoholic beverages including low alcohol category in
coming years.
Key Players
- Anheuser Busch InBev.
- Carlsberg Group
- Beam-Suntory
- Constellation Brands
- Diageo Plc
- Heineken Holding Nv
- Accolade Wines
- United Breweries Group
- The Brown–Forman Corporation
- Bacardi Limited
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NOTE: Our Team of
Researchers are Studying Covid19 and its Impact on Various Industry Verticals
and wherever required we will be considering Covid19 Footprints for Better
Analysis of Market and Industries. Cordially get in Touch for More Details.
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