Low alcohol wine fails to take off as consumers switch to alternatives

Despite the trend for consumers drinking less, lower alcohol wines are still struggling to gain a significant foothold in the market, as drinkers turn to other low and no alcohol drinks instead. 

According to Wine Intelligence, the lower alcohol wine category “may deliver” some future potential, driven by consumers choosing to moderate their alcohol consumption. However, mocktails, adult soft drinks and low alcohol beer are providing stiff competition for lower alcohol wines.  

The key issue appears to be the perception that the quality and taste is poor. “Traditionally there has been a big difference in the quality of lower alcohol wines, with lower alcohol wines being very green, harder, and more acidic, with more sugar to hide these traits,’ said the report.  

Wine Intelligence identified the strongest opportunity for lower alcohol wines  in New Zealand, followed by Australia in second place. Of the 11 key wine markets analysed, Germany, Sweden and Japan showed the least potential for growth. Similarly, non-alcoholic wines greatest potential lies in Sweden and the Nordic countires, with Japan and Portugal bringing up the rear.