Wine is one of the oldest alcoholic beverages in the world. Its history dates back thousands of years. However, it is only comparatively recently that non-alcoholic wine has started to make inroads into people’s drinking habits. And, as a result, the marketplace. That’s not to say the impact on the market has been huge. Indeed, a report by Wine Intelligence found that non-alcoholic wine accounted for less than 1 per cent of the total wine market in the UK, US and Germany in 2020. However, sales of non-alcoholic wine have been growing. According to a report by Nielsen, sales of non-alcoholic wine in the US grew by 22% in 2020, compared to the previous year. So what is the outlook for the non-alcoholic wine industry?
Is this growth trend likely to continue?
The growth of non-alcoholic wine
The recent growth in the consumption of non-alcoholic wine may be attributed several things. Firstly, to a growing health-consciousness among consumers. And secondly, because an increasing number of people are choosing to abstain from alcohol for personal or religious reasons.
Data Intelo reports on the global state of play and predicts that the non-alcoholic wine market is projected to grow at a rate of 7.5 per cent annually from 2022 to 2030. The growth in the market can be attributed to the growing demand for NA wines from more health-conscious consumers and the growing popularity of wine among millennials, who report lower levels of alcohol intake. In addition, the increasing number of women drinkers is also a contributing factor to the growth of this market.
In the UK, the demand for non-alcoholic wine grew by 20 per cent in 2019, compared to the previous year. A report by Wine Australia detailed that sales of non-alcoholic wine down under grew by 60 per cent in 2020, compared to the previous year. Over in France, a report by Nielsen stated that sales of non-alcoholic wine in France grew by 30 per cent in 2020, compared to the previous year. However, the overall consumption of non-alcoholic wine in France is still relatively low.
The future outlook for the non-alcoholic wine industry
The trends driving this growth – primarily health consciousness – are only going to become more commonplace. Younger people – in particular millennials – generally drink less than older generations. So, the future outlook for the non-alcoholic wine industry is promising. According to a report by Grand View Research, the global non-alcoholic wine market will grow at an annual rate of 7.8 per cent up to 2027.
In the US, the Grand View Research report predicted that the non-alcoholic wine market will grow at an annual rate of 11.6 per cent. The same report stated that the non-alcoholic wine market in Canada will grow at an annual rate of 8.3 per cent.
Across the Pond, a report by IWSR stated that the non-alcoholic wine market in the UK will grow at an annual rate of 7.4 per cent from 2020 to 2024.
In Australia, the non-alcoholic wine industry is still in its early stages. But the demand for non-alcoholic wine is expected to grow in the coming years. According to a report by IBISWorld, the non-alcoholic wine and beer manufacturing industry in Australia is expected to grow at an annual rate of 5.6 per cent from 2020 to 2025. Global data company IRI sees the market in Australia growing by an annual average of a whopping 800 per cent. That’s as more and more people, if not necessarily to avoiding alcoholic beverages altogether, certainly make a conscious choice to limit their alcohol intake.
Conclusion
The non-alcoholic wine industry is on a trajectory of growth and expansion. It’s not pulling up too many trees when it comes to an overall share of the entire wine market. But it is steadily growing in popularity. And the industry is poised to continue its upward trend. Younger, more health-conscious consumers are entering the market. Plus, wine-making techniques are evolving to make better, tastier non-alcoholic wines.
Image credit: Kym Ellis