The non-alcoholic wine market is set to be worth $10 billion (€9.27 billion) by 2027, according to a new study by Fact.MR.
The sector is set to see a CAGR of 7% between 2019 and 2027, as consumer demand for 'healthier' beverage variants gains pace.
Category Development
According to Fact.MR, the non-alcoholic wine category is 'soaring' due to the developing flavour, depth and sophistication of products in the category, which in turn is appealing to a larger proportion of the community.
'Consumption of non-alcoholic wine and other beverages is increasingly becoming one of the mainstream trends which is shaping the global beverage industry,' the report reads. 'The convergence of these patterns is underpinning the exponential growth for the non-alcoholic wine market over the forecast period.'
Europe leads the way in non-alcoholic wine, holding more than two-fifths of the overall market – Italy and France have the highest per capita consumption of non-alcoholic wine, of more than 35 litres per person per year.
In terms of future growth, however, North America is set to be the fastest-growing region for the non-alcoholic wine market, with a CAGR of 8% expected over the review period.
Asia Pacific is likely to see a 7% growth rate over the review period, while demand for non-alcoholic wines is also likely to see a boost in Middle Eastern countries, such as the UAE, Kuwait, Iran and Saudi Arabia.
In addition, the expansion of the wine channel also opens up potential exposure to new population segments, such as sports people, older consumers or pregnant women.
“Over the past decade, the market share of non-alcoholic wine has grown significantly with increasing preference for low liquor content drinks," a Fact.MR analyst explained. "The ever-growing trend towards health awareness and wellbeing is positioning non-alcoholic wine as one of the biggest product categories in beverages."
Wine Houses To Gain Margin Benefits
Some of the established names in wine are those that are likely to see the most benefit from the growth of non-alcoholic wine, including E & J Gallo Winery, Treasury Wine Estate, Castel Frères and McGuigan.
With low or even zero-tax policies applied to non-alcoholic beverages in many key markets, alcohol manufacturers could also enjoy increased profitability margins from their investment.
'Strategic alliances, new product releases, expansion of product portfolio and mergers & acquisitions are among the main strategies embraced by industry players to increase their share', Fact.MR said.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine
