Italian Wine Producers Stalled by Government Delay on Alcohol-Free Regulations

The Italian wine industry remains at a standstill as it waits for the government to approve a key decree on the fiscal regulation of dealcoholized wines. The Unione Italiana Vini (UIV), which represents Italian wine producers, has called on the Ministries of Agriculture and Economy to urgently adopt the interministerial decree that would allow domestic production of these wines. The decree, which is meant to implement fiscal rules for dealcoholized wines, has been stalled at the State General Accounting Office for more than two months.

Despite significant investments by Italian wineries in equipment and training to produce dealcoholized wines, current regulations still prohibit their production in Italy. This situation puts Italian producers at a disadvantage compared to their European competitors, who have benefited from European Union regulations since December 2021. Paolo Castelletti, secretary general of UIV, said that Italian companies are ready and have already invested in infrastructure and market positioning but are unable to operate due to the lack of regulatory approval. He emphasized that other European producers have had a four-year head start, and called on the government to approve the fiscal decree without further delay.

The global market for no and low alcohol (NoLo) wines is one of the few segments showing growth in an otherwise challenging environment for wine sales worldwide. According to UIV’s observatory, the NoLo category is currently valued at $2.4 billion globally and is expected to reach $3.3 billion by 2028. The sector is projected to grow at an annual rate of 8% in value and 7% in volume over the next four years.

Retail data from NielsenIQ analyzed by UIV shows strong growth for alcohol-free wines in major markets such as the United States, United Kingdom, and Germany. In the first nine months of this year, sales volumes in Germany increased by 46%, with alcohol-free wines accounting for 5% of the total NoLo market there. In the UK, volumes rose by 20%, representing 23% of the NoLo category, while in the US, sales grew by 18%, making up 17% of low-alcohol wine sales.

Italian alcohol-free wines, which are currently produced abroad due to domestic restrictions, have performed well in export markets. In the UK, Italian products saw a 6% increase in volume and a 10% rise in value. In the US, volumes grew by 17% and value by 24%. Italy holds a 6% share of total zero-alcohol wine sales in the US, 11% in Germany, and 24% in the UK.

The delay in approving the fiscal decree has left many Italian wineries unable to capitalize on this growing market segment. As the end of 2025 approaches, industry leaders are pressing for action so that Italian producers can compete on equal terms with their European counterparts and participate fully in a sector that continues to expand internationally. The UIV’s latest letter urges government officials to resolve the issue quickly so that Italy does not fall further behind in this emerging area of wine production.