2026-07-23
Consumer demand for no- and low-alcohol wine is rising across the world’s largest wine markets, led by younger drinkers who are moderating their alcohol intake but still want products that fit social occasions, according to a new report from IWSR.
The research, published in IWSR’s Opportunities in No- and Low-Alcohol Wine 2025 report, shows that the category expanded across eight major markets tracked by the drinks data and analytics group: the United States, Canada, the United Kingdom, France, Germany, Spain, Japan and Australia. The report points to health concerns, wellness habits and changing social norms as the main forces behind the shift.
Growth has been strongest in no-alcohol wine, which posted volume gains in all eight markets between 2019 and 2024. Annual growth rates ranged from more modest increases in mature European markets to much faster expansion in English-speaking countries and Japan. France recorded a compound annual growth rate of 4%, Germany 9% and Spain 6%. In the United States, no-alcohol wine volumes grew at a 23% annual rate over the same period, while Canada reached 27%, Japan 26%, Australia 18% and the United Kingdom 15%.
Low-alcohol wine still leads the segment in volume terms, but no-alcohol products are gaining momentum faster, according to the report. That shift reflects a broader moderation trend that has become more established in recent years as consumers look for ways to reduce alcohol consumption without giving up drinking occasions altogether.
“Moderation has become an increasingly established force, shaping how consumers approach drinking, and influencing buying attitudes towards no- and low-alcohol beverages, including wine,” Susie Goldspink, head of no- and low-alcohol insights at IWSR, said in the report. She said many consumers are not abandoning alcohol entirely but are instead mixing no-, low- and full-strength drinks depending on the setting.
The report found that Millennials account for the largest share of no- and low-alcohol wine buyers across most of the eight markets. Japan and Spain are exceptions, where older consumers still make up the biggest share of buyers. Across all eight countries, 60% of no- and low-alcohol wine buyers are either Gen Z or Millennials. In the United States, that figure rises to 73%, while in the United Kingdom it reaches 67%.
Gen Z is also becoming more important to the category. Since 2022, its share of no- and low-alcohol wine buyers has increased in every market tracked except France, Japan and Spain. At the same time, Baby Boomers have lost share across the group of countries as younger adults take a larger role in shaping demand.
Goldspink said this generational pattern is especially clear in the United States, Britain, Germany, Canada and Australia, where younger consumers tend to be more closely aligned with moderation habits, wellness concerns and lifestyle-driven drinking choices than older age groups.
The report suggests that the category is entering a new phase of development. Earlier growth was helped by attracting new buyers into no- and low-alcohol wine. Now, as recruitment slows, expansion is being driven more by existing consumers buying these products more often. That means frequency of consumption has become a more important measure for producers than simply bringing first-time buyers into the segment.
Even with strong growth rates, producers still face several obstacles. In five of the eight markets studied, consumer preference for full-strength wine remains the main barrier to purchase. Other challenges include competition from other beverage categories and lingering doubts about taste.
Taste remains central to whether no- and low-alcohol wine can move beyond niche status. Producers have increased investment in product development as they try to create wines that better resemble traditional wine in flavor, texture and overall drinking experience. Much of that innovation has been concentrated in sparkling wines, where producers appear to see stronger consumer acceptance and more room for experimentation.
At the same time, expectations are rising. Consumers increasingly want no- and low-alcohol wines to offer more than a substitute for abstinent moments. They expect products that can pair with food, suit celebrations and deliver what they see as an authentic wine experience. That puts pressure on wineries to improve quality while also explaining clearly how these wines fit into everyday drinking habits.
Price is another issue shaping future growth. Outside the United States, most consumers still expect no- and low-alcohol wines to cost less than full-strength versions. In the American market, however, buyers are more open to paying a premium for these products. That difference may reflect stronger positioning around wellness, innovation and lifestyle branding in the United States than in some other countries.
The category also remains small compared with other alcohol alternatives. No- and low-alcohol beer continues to dominate this part of the drinks market by a wide margin, while wine must also compete with alcohol-free spirits and ready-to-drink products. That lack of scale can limit visibility on store shelves and make it harder for brands to build consumer familiarity.
Still, IWSR says investment is helping wine strengthen its place within the broader no- and low-alcohol segment. More producers are entering the space, distribution is improving in some markets and consumer confidence appears to be growing as product quality improves.
Goldspink said affordability remains important but added that more consumers are now willing to pay higher prices for better no- and low-alcohol wines. In her view, future gains will depend on continued improvements in quality, clearer positioning of the category and wider availability across retail and hospitality channels.
For wineries and retailers, the findings point to a market with clear momentum but little room for complacency. Younger consumers are driving demand, but they are also bringing higher expectations on taste, value and occasion. That combination could define whether no- and low-alcohol wine becomes a lasting part of mainstream wine consumption or remains a smaller branch of a fast-changing beverage market.