Shifting consumer preferences towards healthier non-alcoholic beverages along with improving living standards are among key factors propelling the market growth. Rapid socialization coupled with enhanced preference in maintaining social status among non-drinkers will stimulate the industry demand. Stress relieving nature of the alcoholic beverages accompanied by hectic schedules and busy lifestyles has enhanced the product adoption.
Substantial shifts among the younger population pertaining to the sales of low alcohol or alcohol-free beverages is expected to proliferate the product landscape. As per the beverage daily report of 2017, consumers demand is increasing for non-alcoholic beverages along with more experimental & sophisticated flavours. Cider variant is becoming the fastest growing segment in terms of flavour innovation and low alcohol content. Surging economic growth with the increasing disposable incomes will strongly propel the business expansion.
Inclination towards alcohol content reduction in several countries due to increasing consumer health consciousness across the world has resulted in increasing non-alcoholic wine and beer penetration. In 2016, Germany, UK, Spain, Poland, France, and Italy were the top beer consuming nations in Europe. However, according to Brewers of Europe, the total beer consumption in Germany observed a significant decline from 86,018 hectolitres in 2015 to 85,532 hectolitres in 2016. Conversely, the non-alcoholic beer and wine market witnessed significant gains in the European market.
Liquor manufacturers are adopting strategies for overcoming the cultural prohibitions on alcohol use particularly in the Islamic countries through alcohol-free wine and beer variants. Upsurge in the popularity of these beverages in the Middle East is anticipated to foster new opportunities to the leading manufacturers. Stringent rules and regulations pertaining to the alcohol consumption age limit in various countries across the globe will fuel the business expansion. Alcohol-free wine and beer are becoming more popular among the millennials owing to the availability for more variants coupled with different flavours.
Numerous players across the globe are heavily investing in the craft beer segment. Rising significant innovations in the business will boost the product penetration. Building strong customer base and commercial feasibility will be the key focus for several major manufacturers in the industry. Moreover, challenges in alcohol content limitation in various wine & beer variants and lacking in producing absolute alcohol less variants may pose restraints in the business growth.