Author: Nimmi Malhotra
As mindful drinking and moderation slowly become the global norm, the no-and low-alcohol market is poised to drive future growth, forecast to add $4 billion by 2028.
If a bar or store doesn’t offer non-alcoholic options, they’re missing out.
We are reframing how we talk about these offerings.
Until recently, alcohol moderation was a fleeting commitment often tied to themed months like Dry January or Sober October. Today, it has evolved to a lifestyle choice, driven largely by the values of Gen Z (those born from 1997) and echoed by other demographics. This shift is rooted not just in health consciousness but also in deeper concerns around mental wellness, social clarity and economic sustainability.
Across age groups – Millennials, Gen X and Boomers – more individuals are choosing to be “sober curious,” and practice “mindful drinking,” meaning they are reducing their alcohol intake and approaching drinking with greater awareness and restraint. Imbibers now bookend their evenings, starting with non-alcoholic drinks and switching to alcoholic ones — a practice similar to “zebra striping,” or alternating alcoholic and non-alcoholic drinks — to reduce total alcohol content.
Coincidentally, the rise in moderation aligns with a global decline in alcohol consumption. IWSR reports a 2% drop in volumes since 2019. The growing no- and low-alcohol segment offers producers a chance to capture a burgeoning market; IWSR No/Low Alcohol Strategic Study 2024 predicts that no-alcohol will drive growth, adding $4 billion by 2028. If growth continues, the segment could add another $10 billion by 2034.
The supporting data is robust. A 2024 Gallup Poll recorded a 5% drop in U.S. adults drinking alcoholic beverages from 65% to 60% over six years. Americans’ weekly drinks also dipped from 4.0 to 3.6. Euromonitor’s 2024 global report shows a 0.2% decline in volume consumption, one of only three such instances in 15 years, with non-alcoholic drinks rising across categories. In the UK, the KAM report Drinking Differently: Low & No 2025 found that nearly 36 million UK adults, 76% of those who drink, are moderating their alcohol intake, though not rigidly.
Meanwhile, the IWSR finds that no- and low-alcohol beer, wine and spirits are seeing unprecedented interest. In 2024, the Top 10 consumption markets contributed $15.7 billion, over 60% of which came from non-alcohol products, equating to 5.88 million bottles, a 13% increase over the previous year. The category includes low-alcohol and no-alcohol beer, wine, spirits, RTDs and alcohol adjacent drinks. Among them, beer dominates. Wine and spirits comprise 4% of non-alcoholic volume, according to IWSR, but both are gaining visibility through premium innovation.
Perfecting alcohol free wines
“Four years ago, the alcohol-free wine category hardly ever carried the name of a recognised wine producer,” says Christine Parkinson, co-founder of London–based Wine Alcohol-Free Awards (WAFA) and the former group wine head at Hakkasan Group (now part of Tao Group). Producers acknowledged the demand, she recalls, but no one was ready to put their name on it. That has changed now.
“It’s like a gold rush,” Parkinson says. “Producers and restaurants are rushing to find a way to offer non-alcoholic wine in their portfolio.” The WAFA’s latest competition received nearly 600 non-alcoholic products from 31 countries. Co-founders Parkinson and Chris Losh highlight a noticeable leap in quality.
“In the early days of alcohol free, wine producers generally used the cheapest stuff they could find,” Losh says. “This year, the award-winning entries used higher quality grapes and were less reliant on grape must or sugar.”
Torres was the first to enter the NOLO space, launching its first dealcoholised wine, Natureo White, in 2008. By 2018, the flagship Sangre de Toro range followed suit. The winery is investing €6 million in a dedicated non-alcoholic facility that uses the spinning cone method, one of the most trusted systems for removing alcohol while preserving aromas.
In Argentina, Bodega Catena Zapata debuted a sparkling non-alcoholic rosé at Wine Paris 2025, utilising vacuum distillation, a gentler and more efficient de-alcoholisation method. Meanwhile in Australia, Treasury Wine Estate (TWE) launched an AUD 15 million facility in Barossa to produce the next generation of low- and no-alcohol wines using proprietary technology.
Bordeaux is advancing, too. Co-op Bordeaux, Bordeaux Families and prestige players like Coralie de Bouard of Chateau Angelus have all entered the space. French Bloom, aimed at the super-premium level, has been buoyed by demand, prompting Moet Hennessy to acquire a minority stake.
But among all the innovation, taste remains the industry’s biggest hurdle. Once alcohol is removed, the acidity, sugar and tannins need a rebalance. Winemakers are working on newer ways to compensate for the loss of viscosity, mouthfeel and a much-needed realignment of flavour. Parkinson says that while sparkling wines are widely accepted for their freshness and mouthfeel, winemakers are still working to better represent varietal characters. Producers are now selecting varietals that better withstand de-alcoholisation like Chenin Blanc, Pinot Grigio, Tempranillo and Shiraz.
Douglas Shouler, a pioneer of the category, sits at the forefront of premium non-alcoholic wine development after successfully developing New Zealand’s award winning non-alcoholic premium wine Giesen. He points to new technologies like dialysis membrane and resin absorption columns (RAC) that optimise flavour. “The technology is certainly becoming more advanced,” Shouler says, “We will see higher quality products being produced that are more vinous, and require less sweetness to balance the wines.”
Crafting no alcohol spirits
While no-alcohol wine is gaining a stronger foothold in markets like the U.S., Europe and Australia, spirits are gaining ground globally. These non-alcoholic spirits mimic traditional spirits like gin, whisky, rum and tequila crafted through distillation of botanical and herbs, tea, roots and spices. The drinks and RTD’s are available on retail, DTC channels and at every bar, where mixologists lean on them to craft non-alcoholic cocktails.
According to Allied Market Research, the global non-alcoholic spirits market size reached $325.8 million in 2023 and is projected to hit $706.7 million by 2033, growing at a CAGR of 8.1%. North America leads in revenue, followed by Europe and the UK.
Major players like Diageo have invested in non-alcoholic brands Seedlip and Ritual Zero Proof, validating the category’s future potential. Pernod Ricard has backed Ceder’s, a Swedish botanical gin alternative, while brands like Seagrams and Beefeater’s have now introduced 0% gin variants.
Grassroot innovations are thriving, too. Copenhagen-based brand ISH, which produces non-alcoholic spirits and cocktails known for replicating the “alcoholic bite” using a distillate of chilli seed hulls. Founder Morten Sørensen says he started ISH “to make it easy to be a mindful drinker. The first step is creating amazing taste, whatever the cost.” Their third-generation spirit line shows greater flavour concentration, with more innovation underway. “There’s continuous development at ISH. The objective has always been: how do we get that intensity in the product?” Sørensen says.
A 2019 study by Distill Ventures found that 55% of London venues had dedicated non-alcoholic sections. Six years later, such options are expected across global markets. “Consumers expect non-alcoholic options,” Sørensen says. “If a bar or store doesn’t offer them, they’re missing out.”
Emerging new drink categories
“The wine world rightfully has a lot of regulation. But that’s not the case yet in the world of alcohol free. People are inventing drinks that never existed before with pure creativity,” says Parkinson. WAFA entries include adaptagenic drinks with CBD, ashwaganda, green tea and nootropics like caffeine, Adderall, Ginkgo biloba, mushrooms and Lion’s Mane.
UK-based Three Spirits uses adaptogenic plants and nootropics to “offer a third way between drinking and not drinking.” U.S. brand Flyers infuses zero-proof cocktails with 5mg of cannabis.
Alcohol adjacents are especially popular in the U.S., where the sub-segment is valued at around $98 million, within the no/low market worth $2.2 billion. Some 34% of U.S. consumers have purchased drinks in this category, followed by Australia and Canada.
Another sub-segment, RTDs (ready-to drink beverages), include low-alcohol cocktails, no-alcohol bitters; no-alcohol wine replacements and alcohol-free drinks like kombucha, probiotics and others that targets alcohol or aperitif occasions. Brands like Ghia use Riesling grape juice botanicals like gentian root and ginger, while Poppi (now acquired by PepsiCo for $2 billion) leverages probiotics. Jukes’ Cordialities, a botanical drink, created by wine critic, Matthew Jukes, is based on apple cider vinegar-based..
This segment is dominated by smaller names looking for a foothold, but innovation in RTDs is surging. IWSR reports that Australia’s non-alcohol RTD volume nearly quadrupled in 2022 and now accounts for 3% of the national no-alcohol category. Brands like Monday Distillery and Ms Sans are widely available in retail chains and alcohol retailers like Dan Murphy. Markets with younger demographics, like the U.S., Canada and Australia, are leading adoption, along with Japan, which has a surprisingly high share of older drinkers.
Global markets and channel trends
Yet despite growing interest, global uptake varies. “In Asia, demand remains modest for now, despite alcohol sales being down by 10-12%,” says Bobby Carey, creative director at Proof Creative, a Singapore-based bar and drinks consultancy. “But it’s gaining traction.”
The non-alcoholic spirit market performs best in cocktail bars, where spirits and mixers are used to create sophisticated cocktails. “Singapore and Hong Kong are probably ahead. Places like Bangkok, Vietnam and Indonesia are not far behind,” Carey says.
Yet most bars in the region offer only a limited non-alcoholic cocktail menu except for bars like Mostly Harmless, the newly turned sober bar in Hong Kong. “It’s not a want or a need yet, it’s a request,” he says. The non-alcoholic cocktail menu brings no more than 5% to 10% of the bar’s revenue. In contrast, a bar in Europe can expect 20% of revenues from its non-alcoholic options.
In the Middle East, demand is more structured. Proof Creative works with hotel chains in the Middle East to design non-alcoholic programs. “Hotel life is changing and adopting wellness tourism much more than before. They need to have a well-rounded offering for all guests,” Carey says. Australia and New Zealand show strong interest and innovation: 31% of consumers are now buying no-alcohol products.
Retail and DTC remain dominant, but on-premise is catching up. ISH founder, Sørensen shares his experience with low alcohol cocktail options: “These hybrids are a hit – especially at festivals and bars. A great example is our “Feel Free Bar” at Live Nation festivals, where we roughly serve one drink per minute non-stop throughout the events.”
What’s driving the shift?
“The consumer is really driving the category; it’s driven by moderators, not abstainers,” says Shouler. He firmly believes that the future of the category lies in premiumisation and authenticity. “The biggest move toward premiumisation is to improve the quality of the base wine.”
Of course, challenges remain. “Nothing can really replace the weight, heat and length that alcohol brings to wine,” Shouler says. But through technology and quality winemaking based in high-class grapes, he believes, the wines could be complex, nuanced and even exhibit terroir specificities.
Taste remains the top priority across all sub-categories. Sørensen believes small batch production will drive meaningful innovation. “It’s about creating different drinks, offering exciting experiences and then satisfying the consumers who are searching for something new.”
Ultimately, it may be language itself that needs to evolve. “We are reframing how we talk about these offerings,” says Carey. “Words like ‘guilt-free’, ‘virgin’ and ‘mocktail’ are out. It’s more about what the drink is inspired to do and framing it in a positive manner.”
About Nimmi Malhotra :
Nimmi Malhotra is a wine communicator based in Singapore with a rich background in publishing. As an independent writer, Nimmi covers the wine and spirits scene across Asia, contributing to key publications in Singapore, the UK, India and Australia. An experienced speaker and panel moderator, she actively engages in industry discussions on contemporary topics.
