July 5, 2024 – Here we provide a comprehensive overview of the European low and no alcohol market, offering valuable insights for brands and businesses looking to capitalize on this exciting growth opportunity. This includes analyzing key trends, consumer insights, and product launches.
Consumer Insights
29% of European consumers have purchased low and no alcohol drinks in the past year, compared to 37% of consumers who have purchased alcoholic drinks. Generation Z and Generation X over-index on non-alcoholic purchase penetration.
Beer is the most frequently consumed alcoholic subcategory in Europe. 53% of European beer drinkers consume it at least once a week. Non-alcoholic beer is one of the alternative options consumed least frequently (37% drinking it at least once a week). In contrast, non-alcoholic spirits consumers drink them as frequently as alcoholic beer among beer drinkers (53%) and more often than alcoholic spirits (43%).
European consumers are increasingly turning to non-alcoholic alternatives, with beverage market trend research showing a net increase of 8% more consumers increasing their intake over the past year. This trend is driven by a 22% rise in those increasing their consumption, while only 14% are decreasing it. Within Europe, wine and beer are slightly declining in consumption declining the most, while flavored alcoholic beverages are declining the least.
The top reasons Europeans gave for increasing their consumption of non-alcoholic beverages were to control alcohol consumption (37%), and because it is healthy (26%). The top reasons for decreasing consumption were lifestyle changes (29%) and, interestingly, because it is unhealthy (27%). There is therefore a split in attitudes between European consumers, where some consider non-alcoholic drinks healthy, and others consider them unhealthy.
European consumers consider locally sourced, low and no reduced sugar, and made with real ingredients as the top purchasing influencers for non-alcoholic beverages.
NPD Trends in the Low and No Alcohol Beverage Market
Non-alcoholic beverage launches in Europe grew at a rate five times faster than total alcoholic beverage launches in the region. Low and no alcohol drinks make up 11% of total alcoholic beverage launches. Additionally, within the category of low and no alcohol beverages, no alcohol launches grew to represent 35% of all low and no alcohol beverage launches, with the remaining 65% occupied by low alcohol beverage launches.
Beer is the most common low and no alcohol product, representing 57% of launches in the category, followed by flavored alcoholic beverages (FAB) (18%), wine (15%), and spirits (10%). Comparatively, beer represents 41% of alcoholic launches, followed by wine (29%), spirits (23%), and FAB (7%).
Low and no alcohol FAB have seen the most growth in product launches in the last five years, mirroring growth of their alcoholic versions. Wine and spirits in the low and no alcohol sector have also seen growth, more so than their alcoholic counterparts. Brands can be seen capitalizing on this beverage market trend, such as the top Italian prosecco brand Mionetto introducing its first zero alcohol prosecco, alongside a low alcohol Mionetto Aperitivo, allowing for a low alcohol recreation of popular Spritz cocktails.
Inconsistent Labels and Regulations
Labels and regulations for low and no alcohol products appear to be in a flux within the market. For instance, Hepsworth Sussex Gluten Free Low Alcohol Lager describes itself as ‘low alcohol,’ with a 0.5% ABV content. However, Malloskoski Please Hold Session Pale Ale also states that it is low in alcohol but sports a 3.4% ABV content. Some stronger alcoholic beverages, such as Sogood Sake Junmai Daiginjo Sake, state that they have low ABV, with 15.5%.
Top Claims and Flavors Trends
Vegan claims in low and no alcohol beverages saw extensive growth in Europe in the past five years, now seen on 25% of all beverages in the category. Gluten-free, and low-calorie claims also saw noticeable growth in low and no alcohol beverage market trends.
Fruit flavors are most common in low and no alcohol beverages by a wide margin, and have continually grown in popularity over the past five years. The top three fruit flavors are red raspberry, lime, and lemon. Cola, coffee, ginger, honey, and milk chocolate are all emerging flavors within the category.
What’s Next in Low and No Alcohol Beverage Trends?
The rise of functional ingredients, already established in the soft drink market, is beginning to emerge in low and no alcohol alternatives in Europe. Consumers are seeking beverages that offer additional health benefits beyond simply being low or no alcohol. This presents an opportunity to incorporate ingredients like adaptogens, vitamins, minerals, CBD, adaptogens, caffeine, kombucha probiotics, and turmeric into low and no alcohol products.
Additionally, technologies for removing alcohol and infusing flavors are constantly advancing. This opens up possibilities for creating low and no alcohol beverages with a wider range of flavors and aromas, closer to the sensory experience of their full-alcohol counterparts.
Finally, local products are a top influence purchaser among European consumers. Brands can elevate local production, whether a brewery with local roots, a start-up distiller in a town or city known for culture, or ingredients sourced from local farmers. Local can be utilized in low and no alcohol products as a building block to creating a brand that is unique and can be trusted.
This article is based on our report, “More Control, Better Health: Low and No Alcohol Beverages in Europe .” If you are interested in reading this report, feel free to request a demo.
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