Global demand for no- and low-alcohol wine surges – IWSR

GLOBAL – Consumer demand for no- and low-alcohol wine is increasing across the world’s largest wine markets as younger consumers moderate their alcohol consumption while seeking products that suit social occasions, according to the latest report from IWSR. 

The findings, published in the Opportunities in No- and Low-Alcohol Wine 2025 report, show that the category expanded across eight major markets tracked by the drinks data and analytics company: the United States, Canada, the United Kingdom, France, Germany, Spain, Japan and Australia. 

According to the report, changing consumer attitudes toward health, wellness and responsible drinking are driving sustained growth, with no-alcohol wine emerging as the strongest-performing segment. 

Between 2019 and 2024, no-alcohol wine recorded volume growth across all eight markets. France posted a compound annual growth rate (CAGR) of 4%, while Germany recorded 9% and Spain 6%.  

Faster growth was seen in English-speaking markets and Japan, with the United States registering a 23% CAGR, Canada 27%, Japan 26%, Australia 18% and the United Kingdom 15%. 

Although low-alcohol wine continues to account for the largest share of category volumes, IWSR said no-alcohol products are expanding at a faster pace as consumers increasingly adopt moderation rather than complete abstinence. 

“Moderation has become an increasingly established force, shaping how consumers approach drinking, and influencing buying attitudes towards no- and low-alcohol beverages, including wine,” said Susie Goldspink, Head of No- and Low-Alcohol Insights at IWSR. 

She added that many consumers are choosing to alternate between no-, low- and full-strength alcoholic beverages depending on the occasion instead of eliminating alcohol entirely. 

The report also highlights a significant generational shift in purchasing behaviour. Millennials represent the largest group of no- and low-alcohol wine buyers across most of the surveyed markets, with Japan and Spain being the only exceptions where older consumers remain the dominant purchasers. 

Across all eight countries, 60% of no- and low-alcohol wine buyers belong to either Generation Z or the Millennial generation. The share rises to 73% in the United States and 67% in the United Kingdom. 

Generation Z is becoming an increasingly important consumer group. Since 2022, its share of category buyers has increased in every market except France, Japan and Spain, while Baby Boomers have steadily lost market share as younger adults influence purchasing trends. 

Goldspink said the pattern is particularly evident in the United States, Britain, Germany, Canada and Australia, where younger consumers tend to place greater emphasis on moderation, wellness and lifestyle-driven drinking habits. 

The report indicates that the market is entering a new stage of development. Earlier expansion was largely driven by attracting first-time buyers, but future growth is increasingly being supported by existing consumers purchasing no- and low-alcohol wine more frequently. 

Despite the positive outlook, producers continue to face several challenges. In five of the eight markets analysed, consumer preference for traditional full-strength wine remains the primary obstacle to wider adoption. Competition from alcohol-free spirits, beer and ready-to-drink beverages, together with lingering concerns over flavour and drinking experience, also continues to limit growth. 

Taste remains a critical factor in expanding consumer acceptance. Producers have increased investment in research and product development to improve flavour, texture and authenticity, with much of the innovation focused on sparkling wines, where consumer acceptance has been strongest. 

Consumers are also expecting these products to deliver more than an alcohol-free alternative. They increasingly want no- and low-alcohol wines that complement meals, suit celebrations and provide an authentic wine experience. 

Price continues to influence purchasing decisions. Outside the United States, most consumers expect no- and low-alcohol wines to cost less than conventional wines. In contrast, American consumers have shown a greater willingness to pay premium prices, reflecting stronger positioning around wellness, innovation and lifestyle branding. 

Although the category remains considerably smaller than no- and low-alcohol beer, IWSR said increasing investment, improving distribution and higher product quality are strengthening its long-term growth prospects.  

Goldspink added that affordability remains important but noted that more consumers are becoming willing to pay higher prices for premium no- and low-alcohol wines as quality continues to improve. 

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