Non-alcoholic segment to grow by $4 billion by 2028: IWSR

The non-alcoholic beverages category is expected to deliver incremental growth of USD 4 billion and above by 2028, according to new data released by the International Wine and Spirits Record (IWSR).

The no/low-alcoholic beverages sector is projected to grow at a combined 4 percent volume CAGR across 10 key markets through 2028. The non-alcoholic beverages will drive this expansion at a 7 percent volume CAGR, while low-alcohol volumes will remain relatively static, according to IWSR’s No- and Low-Alcohol Strategic Study 2024.

Key findings in the report reveal that the non-alcoholic beverages segment is attracting more new consumers than low-alcoholic beverages. In 2024, the non-alcoholic beverages segment saw a net increase of 61 million buyers from 2022. Meanwhile, only 38 million new buyers were attracted towards low-alcoholic beverages this year. This growth was observed across 10 key markets—Australia, Brazil, Canada, France, Germany, Japan, Spain, South Africa, the UK, and the US.

The US and Brazil are highlighted as pivotal growth markets, with anticipated volume CAGRs of 18 percent and 10 percent, respectively, between 2024 and 2028. Growth in these markets is attributed to the recruitment of new consumers, increased consumption frequency, and greater product adoption.

Gen Z, particularly those recently reaching legal drinking age, are more likely to replace sodas and energy drinks with no-alcohol alternatives. The older demographics are too, substituting alcohol, especially beer and cider, with no-alcohol options, signalling a shift in consumer preferences across age groups.