In 2024, the market for no- and low-alcohol beverages continued its strong upward trend, with a 13% volume growth across the ten largest global markets, including the United States, United Kingdom, Germany, France, Japan, and Brazil. This data, published by IWSRin the latest IWSR No- and Low-Alcohol Strategic Study, confirms the increasing relevance of these beverages in the broader alcoholic drink industry.
Between 2022 and 2024, approximately 61 million new consumers entered the no-alcohol segment and 38 million joined the low-alcohol category. This trend reflects a global shift toward moderation and changing consumer preferences that prioritize taste, availability, and brand familiarity over simple health concerns. Notably, no-alcohol options are increasingly replacing full-strength drinks in similar consumption contexts—30% of no/low consumers in 2024 said they would have previously chosen full-strength products, up from 2022.
The United States has emerged as a key driver of this movement. During the two-year period, 37 million Americans adopted no-alcohol drinks, and another 36 million turned to low-alcohol products. Meanwhile, Brazil added 13 million new no-alcohol consumers. These changes align with broader declines in full-strength alcohol consumption. In the U.S., full-strength volumes declined by a CAGR of 1% between 2019 and 2024, while no-alcohol surged by 28% and low-alcohol by 7%.
Although no-alcohol beer remains the largest segment, its participation has plateaued, while ready-to-drink (RTD) beverages, spirits, and wine are gaining momentum—especially among younger consumers of legal drinking age. Millennials and Generation Z are increasingly shaping the no/low landscape. Millennials, in particular, display greater brand loyalty, with 57% driven by brand familiarity versus only 45% among Boomers.
Taste and availability now rank alongside health as decisive factors. In 2024, 52% of consumers said they bought no/low products due to brand familiarity (up from 48% in 2022), and 32% cited taste preferences (up from 28%). Positive brand perception is also rising: 54% of consumers described no/low brands as personally meaningful, and 53% found them exciting.
Looking ahead to 2028, no-alcohol drinks are projected to grow at a CAGR of 7%, with RTDs leading the low-alcohol category at an expected 17%. Growth is forecast across all no-alcohol categories—beer and cider (+7%), wine (+5%), spirits (+7%), and adjacent functional adult beverages (+3%).
Regionally, the U.S. and Brazil are expected to remain the largest markets with contrasting dynamics. In the U.S., a wide array of no-alcohol categories is expanding rapidly, especially among younger, brand-engaged consumers. Brazil’s growth, by contrast, is concentrated almost entirely in no-alcohol beer, driven by large international brewers.
While smaller markets like Canada and Australia present strong growth potential, the commercial focus will remain on the U.S. and Brazil, where diverse consumer profiles and category strengths offer broad strategic opportunities for producers and retailers.
Underscoring the shift from health-conscious niche to mainstream relevance, no- and low-alcohol products are now positioned as essential elements of modern beverage portfolios.
