IN BREVE
- The No/Low alcohol segment is growing at double-digit rates and becoming a structural category in the global beverage industry.
- By 2027, it will represent 4% of global volumes, thanks to over 60 million new consumers seeking non-alcoholic options.
- Producers face the challenge of replacing the structural function of alcohol to avoid flat, complexity-lacking beverages.
- Retailers must offer higher margins compared to traditional soft drinks and ensure fast-moving, profitable references in bars.
- No/Low alcohol is no longer an alternative, but an autonomous category with its own technical and market rules.
The No/Low alcohol segment consolidates its role in the global beverage industry. No longer a seasonal phenomenon tied to Dry January, but a structural category for retailers and producers, with double-digit growth in major markets. This emerges from “The 2026 No/Low Alcohol Beverage Report” published by Good Culture Ingredients, which analyzes trends, consumption occasions, regional dynamics, and product development strategies.
According to IWSR data, taking 2020 volumes in the top 10 markets as a baseline of 100, No/Low reached 116 in 2023 and will hit 137 in 2027, equal to a +37% increase compared to 2020. By 2027, the segment will represent 4% of global volumes, double that of ten years ago.
DATA AND CONSUMERS: MODERATION IS STRUCTURAL
The momentum comes from a cultural shift. Over 60 million new consumers have embraced no-alcohol options between 2022 and 2024, according to IWSR.
In the United States, about one in three adults chooses non-alcoholic options on many occasions, with greater interest in the 35-44 age group. More than half of Gen Z and Millennials who consume alcohol say they want to reduce their intake. In the United Kingdom, 76% of adults report moderating their consumption in some way.
This is not about abstinence, but control. The Good Culture report highlights the phenomenon of “zebra striping“: alternating alcoholic and non-alcoholic beverages on the same occasion to extend the social moment without overindulging.
WHAT NO AND LOW REALLY MEAN
The report distinguishes three operational ranges:
- Alcohol-Free: 0.0% ABV.
- Non-Alc/Dealcoholized: up to 0.5% ABV.
- Low Alcohol: up to approximately 1.2% ABV (depending on the country).
These thresholds affect positioning, communication, and consumption occasions. In particular, four macro-categories are identified: Beer and Cider, Wine and Sparkling, non-alcoholic Spirits, RTD (ready-to-drink cocktails). Each segment responds to a specific moment: the “pub evening” for beer, meals for wine and sparkling, the cocktail ritual for zero proof spirits, parties for RTDs.
THE TECHNICAL ROLE OF ALCOHOL AND THE SENSORY CHALLENGE
A crucial point remains on the table: alcohol is not just a psychoactive “effect,” but structure. In a drink, it contributes to aromatic lift, body, viscosity, persistence, and the ability to extract botanical components. Its removal results in loss of weight, tension, and taste length.
The technical challenge for producers is therefore to replace the structural function of alcohol, not simply eliminate it. The risk, also highlighted in the Good Culture document, is generating sweet, flat beverages lacking complexity, perceived as “adult” soft drinks but not equivalent to the experience of wine, beer, or cocktails.
GEOGRAPHIES OF NO/LOW GROWTH
According to the analysis, there are four key areas:
- United Kingdom and Europe, where the on-trade channel serves as a launch platform and consolidates consumption habits.
- United States and Canada, a market driven by retail with growth in zero proof spirits and RTDs.
- Australia and New Zealand, small markets with high quality standards and a strong craft scene.
- Asia Pacific and Latin America, still a beer-led market today but considered testing ground for new formats.
MARKET FORCES AND TENSIONS
Growth is not without challenges. No/Low beer still suffers from perceptions of inconsistent quality. Non-alcoholic wine shows deficits in structure and texture. Zero proof spirits risk the “mocktail trap,” meaning products perceived as flavored juices.
Retailers seek higher margins compared to traditional soft drinks, while the bar channel needs references with service speed and profitability comparable to alcoholic cocktails.
STRATEGIES TO COMPETE
Good Culture Ingredients proposes four guidelines in its report: design starting from the consumption occasion, use fermentation as a structure driver, integrate ABV control and aromatic development in the same process, position in premium ranges.
The final message is clear: No/Low is no longer an alternative, but an autonomous category with its own technical and market rules. In a context of stagnant alcohol volumes, it represents one of the few segments with sustained growth.
