No- and low-alcohol wine surfs moderation trend

Consumers in the world’s major wine markets are becoming more and more engaged with no- and low-alcohol products, thanks to the established moderation trend and concerns around health and wellness.

As participation and consumption frequency continue to grow, especially among younger consumers, the no/low wine market is expanding across the top eight markets (T8: US, Canada, UK, France, Germany, Spain, Japan and Australia) tracked by IWSR in its Opportunities in No- and Low-Alcohol Wine 2025 report, with low-alcohol leading in volume terms – but no-alcohol gaining in momentum.

All eight markets registered volume increases for no-alcohol wine during the 2019-24 period, with CAGR numbers ranging from single-digit growth in the more mature markets of France (+4%), Germany (+9%) and Spain (+6%) to major gains in the US (+23%), UK (+15%), Australia (+18%), Canada (+27%) and Japan (+26%).

“Moderation has become an increasingly established force, shaping how consumers approach drinking, and influencing buying attitudes towards no- and low-alcohol beverages, including wine,” says Susie Goldspink, head of no/low insights.

“Driven by health awareness, wellness-focused lifestyles and shifting social norms, many consumers are choosing to drink less alcohol while still seeking suitable alternatives for everyday and social occasions. Rather than abstaining completely, most are blending no-, low- and full-strength options, depending on the occasion.”

Across the T8, Millennials make up the largest share of no/low wine buyers, except in Japan and Spain, where older consumers dominate. As Gen Z’s presence expands, Boomers’ share of no/low buyers has fallen since 2022.

Across the T8 markets, 60% of no/low wine buyers are Gen Z or Millennials; in the US, the figure is 73%, and in the UK, 67% – and Gen Z consumers have significantly increased their share of the category in all countries except France, Japan and Spain since 2022.

“The participation of Millennials – and increasingly Gen Z – reflects their stronger alignment with moderation, wellness and lifestyle-driven drinking habits than older age cohorts, particularly in the US, the UK, Germany, Canada and Australia,” explains Goldspink.

As the no/low wine category matures, gains are being driven by existing buyers as new entrant momentum slows, meaning that frequency of consumption, rather than recruitment, is now the most important growth driver.

While there are clear prospects for continued growth across no- and low-alcohol wine, challenges remain. Barriers to purchase include a consumer preference for full-strength products – cited as the top barrier in five out of the eight markets – as well as competing beverage choices and negative taste perceptions.

Producers are continuing to invest in no/low innovation, introducing new products as they redouble their efforts to replicate an authentic wine-drinking experience and shift perceptions of no/low, with most launches occurring in the sparkling category.

At the same time, quality expectations are rising, as consumers increasingly expect no- and low-alcohol wines to deliver an authentic taste, food compatibility and a sense of occasion, rather than acting as a compromise on occasions when they want to avoid alcohol.

Price expectations are also evolving, although consumers outside the US still anticipate paying less for no-/low-alcohol wines versus full-strength products – whereas US consumers expect no/low to attract a price premium.

No- and low-alcohol wine also suffers from a lack of scale: it is dwarfed by the much larger no/low beer category and faces stiff competition from rivals across beer, spirits and RTDs. Nonetheless, prospects for future growth remain bright.

“Beer continues to dominate the no-alcohol space in particular, but wine is benefitting from increased investment and innovation, strengthening its position within the category,” says Goldspink.

“While affordability continues to be important, a growing number of consumers are willing to pay more for quality no- and low-alcohol wine, reflecting increasing confidence in the category. The outlook is one of cautious optimism, with ongoing investment in quality, clearer category positioning and improved availability key to unlocking future growth.”