Whether it’s because they’re ‘sober curious’ or practising mindful drinking, many consumers are drinking less alcohol. However, they’re pretty picky about their alcoholic beverage replacements.
A Coke just won’t cut it any more. Instead consumers seek more sophisticated offerings, which is where alcohol-free wines, spirits and beers are now hitting the spot – or at least trying.
You could be forgiven for thinking that alcohol-free versions of boozy beverages are a new phenomenon, but they’re not. According to Belgian Contract Brewery, the first Dutch non-alcoholic beer was launched way back in 1918 but didn’t last long because it tasted so bad. Meanwhile, the first non-alcoholic wine was created even earlier than the beer, in 1908 in Germany by Dr Carl Jung. Distilled non-alcoholic spirits came much later, with Seedlip founded in 2015, but inspired by 17th century herbal remedies.
Since those early days low- and no-alcohol drinks have really caught on. Last year, the global low- and no-alcohol beverages market was valued at US $30.48bn and is predicted to reach US $57.59bn by 2035 at a 6.8% CAGR during the forecast period for 2026 to 2035 (Insight Ace analysis). The market comprises no-and low-alcohol beer, wine, spirits, RTD cocktails/mocktails, hard seltzer and cider.
According to IWSR, the global leader in beverage alcohol data and insights, the top 10 markets for no-alcohol beverages in 2024 (the latest available data) were Germany, Japan, the US, Spain, Poland, Brazil, UK, France, the Netherlands and the Czech Republic. Germany held a 15% share of volume sales followed by Japan with 10% and the US with 8%.
The IWSR reports that China is the world’s second-largest beverage alcohol market by volume, but it is only 13th globally for no-alcohol beverages. Consumption is growing, but at a slower rather than several comparable markets (2019 to 2024 CAGR volume of +6% and 2023 to 2024 YOY % change volume of +5%).
Laura Willoughby MBE, co-founder of UK-based mindful drinking experts Club Soda, says France is definitely a country to watch, especially in alcohol-free wine. “Demand there is growing and vineyards are producing their own de-alcoholised wines, with better technology helping lift quality fast.
“Germany matters because it remains one of the biggest alcohol-free beer markets globally and low alcohol styles like Radlers (low alcohol beer mixed with citrus soda) are growing there too. The US is still a big growth story, especially in beer, even if it is coming from a smaller base.”
Willoughby continues: “From a flavour and cultural point of view, I would absolutely keep an eye on the Middle East and younger urban markets more broadly. That is where you are seeing strong demand for unusual flavour combinations, premium softs and drinks that are totally new concepts.”
Spanish firm Mahou San Miguel recently entered the Middle Eastern market with Vamos by Mahou, a new non-alcoholic carbonated malt beverage in a can, specifically for the Egyptian market. It comes in four flavours: classic toasted malt, pineapple with caramel, apple with cinnamon, and peach with vanilla.
In Saudi Arabia, it’s non-alcoholic spirits where the growth is coming from. Sales have grown by 15% annually since 2019, with projected CAGR of 10% a year until 2029, according to IWSR data.
The functional revolution
One British brand that’s doing well in the Middle East is Sea Arch, specifically through Dubai’s Drink Dry platform. Its drinks include Sea Arch Coastal Juniper which is described as a premium alternative to gin. All Sea Arch’s recipes are inspired by the Devon coast where the company is based. The Coastal Juniper is distilled with coastal botanicals, including juniper, citrus and sea buckthorn, to deliver a “crisp, dry profile with a clean, refreshing finish”.
Willoughby believes the category’s growing appeal comes from the fact that innovation is increasingly coming from outside traditional alcohol. Sparkling teas, functional spirits and mood-enhancing drinks are drawing inspiration from wellness, gastronomy and even supplements rather than beer, wine or spirits.
“Some brands are building around a feeling, not a spirit style, energy, calm, sociability, focus,” she says, arguing that this is helping create products that feel genuinely new rather than simply alcohol-free alternatives. She also points to growing consumer demand for drinks tailored to specific moments and occasions, helping drive growth in single-serve formats, RTDs and purpose-built functional beverages.
Functional ingredients are a particularly important development because they allow alcohol-free drinks to offer benefits beyond those traditionally associated with alcohol, says Willoughby.
“We are seeing CBD, L-theanine, lion’s mane, reishi, chaga, ashwagandha, valerian, lemon balm, liquorice root, botanicals and GABA-linked formulations all coming into play,” she explains.
These ingredients are being used to support everything from relaxation and focus to mood enhancement, while some also contribute flavour and texture. “That is why I think functional ingredients are one of the most interesting things happening in drinks right now,” says Willoughby. “They are creating a whole new reason to choose the drink.”
THC, the primary psychoactive compound in cannabis, is an ingredient that is being included in more and more non-alcoholic drinks. It’s in wine alternative Mariona from the US. The blurb for the drink says: “Structure, complexity, sensations…nothing captures us the way a glass of cabernet or chenin can. So, rather than settle for less, we set out to create a wine-alternative drinkable that is more than a mere substitute; it’s a pleasure, enhancing all the ways you like to unwind.”
The company says one serving is enough to ‘take the edge off without dulling’ and consumers will feel a ‘float’ after 15 to 20 minutes.
Mariona has about 70% fewer calories than wine and its hemp-derived Delta-9 THC is organic and domestically produced.
Late last year, Scottish firm BrewDog, which has been acquired by US-based Tilray Brands, launched an alcohol-free beer called Mello. There are two variants: Peach & Passionfruit and Lime & Mint, but what make this offering different to other drinks in the no-alcohol arena is the addition of magnesium, chamomile and balm extract.
Each 330ml serving contains 19% (Lime & Mint) and 20% (Peach & Passionfruit) of your recommended daily allowance of magnesium, which contributes to a reduction in tiredness and fatigue. The addition of chamomile might make you think ‘sleepy’, but the guys at BrewDog say Mello helps you hit pause without losing your edge.
Nature is also an inspiration for many alcohol-free drinks. Gut Feeling from Gut Oggau, for example, is described as being ‘beyond wine’ and instead a non-alcoholic botanical drink born from the fields in Burgenland, Austria. The plants that give the drink its aromatics (chamomile, yarrow, dandelion, wormwood, nettle, oak bark) also nourish the soil they grow from which Gut Oggau says strengthens the vineyard from the ground up.
The right market for alcohol-free
The company is not the only one to want to distance itself from the ‘wine’ label.
Feral, a young start-up from the Italian Dolomites describes its product as “perhaps the most unconventional ‘wine’ on the market because it uses no grapes. Instead, it is crafted from birch sap, nettle, lemon verbena, yarrow and horseradish. The company says it is designed to mimic the sour, tangy and cloudy profile of a natural pet-nat (pétillant naturel), providing a “sour-edged experience” rather than a sweet one.
Feral call their drink a non-alcoholic botanical fermentations (FAB) or FER-mented AL-ternatives which is where the name comes from.
On the company website, it says: “Generally, the market for wine alternatives or non-alcoholic pairings is on the rise, and in English-speaking countries, it’s often called Proxy, Wine Proxy, NOLO drinks, NA wine, or non-alcoholic wine alternatives. We prefer to focus on what we are rather than presenting ourselves as an alternative or proxy for something else. But feel free to call us whatever you prefer.”
In Norway, the team at Villbrygg are also busy creating drinks with a taste of nature. The drinks are based on steeping herbs, berries, and wild plants at different durations and temperatures to achieve the desired taste. High heat often brings out bitterness, while lower temperatures give more delicate floral notes. Villbrygg uses different temperatures to extract different flavour profiles from the plants.
After steeping, raw organic sugar and lactic acid bacteria are added to start the fermentation process. The bacteria transforms the sugar into organic acids and complex flavours that also contribute to a natural form of preservation. After a few days, the drinks are pasteurised and carbonised before being put in glass bottles.
Meanwhile, advances in technology are sometimes the key to better tasting low- and no-alcohol drinks. California-based ALTR, a start-up backed by Branca International, Suntory Global Spirits and Tonic Ventures, has developed a membrane-based process to reduce or remove ethanol from wine and spirits without damaging their flavour.
Described as ‘flavor-first alcohol-removal technology’, ALTR’s Velvet Blade uses a specialised membrane process similar to dialysis, avoiding the heat that often alters flavour in traditional de-alcoholising methods. ALTR’s process is said to preserve the beverage’s chemical structure and aromatic complexity, while also lowering sugar and calorie content.
ALTR has raised $6.4m so far and plans to debut its first low-ABV wines this summer in partnership with winemakers.
It seems new flavour profiles and distilling techniques will keep coming as IWSR expects the global volume of no-alcohol analogues (no-alcohol beer, wine, RTDs and spirits) to keep growing, reaching over 18 billion servings of no-alcohol analogues in 2029, which is enough for every person on the planet to consume two each.