Research from InsightAce Analytic finds that the global no- and low-alcohol beverage market was valued at $22.5 billion in 2021, and it is expected to reach $68.9 billion by 2030, growing at a CAGR of 14.0% during the forecast period of 2022-2030.
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The term "low-alcohol beverages" refers to beverages with an alcoholic strength by volume (ABV) between 0.05 and 1.2%, whereas the term "no-alcohol" refers to beverages with an ABV below 0.05%.
Highlights of the report include:
- No- and low-alcohol beers, spirits and mocktails are gaining popularity due to innovations in flavor, function and variety as health-conscious consumers seek refreshing, flavorful and satisfying alternatives to traditional alcoholic beverages.
- Investments by key beverage alcohol companies to attract new and younger consumers is helping to move the market forward.
- Consumers' shift towards natural and organic food products is also driving the market growth.
- Different initiatives taken by governments across the globe to regulate and restrict the consumption of alcoholic beverages has also impacted market growth.
- The introduction of new functional drinks, traditional flavors, smart packaging and supportive government laws are increasing market awareness and value.
- Major manufacturers of complex alcoholic beverages are broadening their market by releasing lighter variants.
- Europe is expected to be the market's largest contributor in the coming years, as European people are shifting from alcoholic to no- and low-alcohol beverages, brought about by increased health concerns.
- North America is expected to have the second largest market share for no- and low-alcoholic beverages after Europe, owing to growing awareness of the health risks of excessive alcohol consumption.