Italy’s dealcoholized wine production is set to surge 90% in 2026

Italy’s market for dealcoholized wine is set to expand sharply in 2026, with production expected to rise 90% as producers move to bring more No-Lo wines to market after years of legal uncertainty, according to a study presented at Vinitaly in Verona by the Uiv-Vinitaly observatory.

The report, discussed on the final day of the fair at Veronafiere, said the Italian industry is entering the segment later than competitors in Germany, Britain and the United States, where no- and low-alcohol wines already have a combined retail value of just over €1.2 billion and account for about 160 million bottles sold. In Italy, the category still represents about 2.5% of the market, but producers and trade groups said they expect faster growth as domestic production ramps up and companies invest in dedicated facilities.

The observatory said that among Italian companies making or preparing to make dealcoholized wines, export sales are expected to account for 91% of output in 2026, while retail will remain the main sales channel at 77%. About half of the companies surveyed said they plan to start production in Italy. The category is still led by no-alcohol wines, which make up 54% of listings, while beverages described as wine-based drinks have risen from 3% in 2025 to 27% now.

Speakers at the roundtable said quality will determine whether Italian producers can compete in crowded foreign markets. Fedele Angelillo of Mack & Schühle Italia said many products on shelves abroad still fall short on quality and that some beverages containing no- or low-alcohol ingredients are being sold as dealcoholized wine, confusing consumers. He said his company has invested in a plant in Puglia with capacity for 8 million bottles and is still working through authorization issues.

Alessio del Savio, chief executive and technical director at Mionetto, said demand is strongest in Germany, English-speaking markets and Poland. He said no-alcohol products tend to attract consumers who are different from traditional wine drinkers and may eventually bring some of them into the wine category. Massimo Romani, chief executive of Argea, said the U.S. market remains important but complex because of its long distribution chain and regulatory requirements. He noted that producers exporting low-alcohol wines under 6 degrees to the United States must obtain approval from the Food and Drug Administration.

The debate also focused on labeling and identity. Producers want labels that emphasize Italian origin and, where possible, Italian grape varieties. Paolo Castelletti, secretary general of Unione Italiana Vini, said current European rules allow dealcoholized wines with geographic indications such as Igt, Doc and Docg, but Italy’s wine law would need to be changed to permit that domestically. He also said existing rules limit grape names on labels largely to seven international varieties allowed for generic wines.

In restaurants, adoption remains limited. Chef Cristina Bowerman said she began offering alcohol-free cocktails years ago at Glass Hostaria in Rome and later added a small selection of dealcoholized wines, but quality was initially a problem. She said demand has risen sharply since the pandemic and that guests now regularly ask for these drinks. Bowerman argued that no- and low-alcohol wines should be treated as part of wine service rather than as a separate novelty.

The observatory’s data showed that consumer interest is growing unevenly across markets. In Britain and the United States, zero-alcohol sparkling wines are performing better than other categories, while low-alcohol products have weakened in some segments. Health remains the main reason people choose these drinks, but quality is becoming more important as products improve. Still, taste remains a barrier for 25% of potential buyers.

The report also found that outside the home the category has yet to gain broad traction in Italy: 71% of restaurants surveyed said they are not interested in adding dealcoholized wines to their lists, while only 3% said they already offer them successfully.