Non-alcoholic wine market expected to explode at a CAGR of 10.4%

Current Scenario and Outlook of the Global Non-Alcoholic Wine Industry

The unprecedented COVID-19 pandemic has significantly affected the global economy. Considering the non-alcoholic wine industry, one of the most important sectors of the economy, a considerable impact has been seen on the whole process, from field to consumer.

Restrictions on the movement of workers, the closure of non-alcoholic wine production facilities and changing consumer demand have put undue pressure on the non-alcoholic wine industry.

Fortunately, several countries like the United States, United Kingdom, India, China, and Germany are slowly recovering from the adverse effects of the pandemic thanks to the advent of the vaccination process. Manufacturers around the world are working effectively to get the non-alcoholic wine supply chain back on track to ensure the rapid recovery of the non-alcoholic wine industry.

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Market Segments Covered by Non-Alcoholic Wine Industry Research

By product type
Still wine without alcohol
Non-alcoholic sparkling wine
By alcohol concentration
Alcohol Free (0.0% ABV)
Low alcohol content (up to 1.2% ABV)

Per package

Non-alcoholic wine bottles
Cans of non-alcoholic wine

By sales channel

Non-alcoholic wine sold in liquor stores
Non-alcoholic wine sold in restaurants and bars
Non-alcoholic wine sold in online stores
Non-alcoholic wine sold in supermarkets
Non-alcoholic wine sold in retail stores
Non-alcoholic wine sold in tasting rooms

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US gains ground with non-alcoholic wine delivery services

The United States is home to some of the largest non-alcoholic wine suppliers and producers in the non-alcoholic wine industry. Despite being a leader in the non-alcoholic wine industry, the country suffered a significant loss due to supply chain disruptions and the closure of production facilities.

The biggest concern in the region was maintaining employee health safety. Due to movement restrictions and the closure of several restaurants and home delivery businesses, the non-alcoholic wine industry has suffered a severe blow.

However, non-alcoholic wine makers in the United States have gradually seen an upward trend as lockdown restrictions eased in the country. Various production facilities have reopened, and the resumption of non-alcoholic wine delivery has helped the non-alcoholic wine industry gain traction.

Major players in the delivery and takeout market such as GrubHub, DoorDash, Postmates and Uber Eats have contributed significantly to the recovery of the non-alcoholic wine industry in the region. The ease of having non-alcoholic wine delivered to the door has helped businesses successfully manage the gap between demand and supply.

Competition landscape:
The market is very competitive, with several producers of non-alcoholic wine products vying for a significant share of the market. The global non-alcoholic wine market has witnessed several mergers & acquisitions and new product launches between 2016 and 2020, and the trend is expected to continue due to growing consumer interest in low-alcohol and alcohol-free wines.

HUN Wines launched the non-alcoholic canned wine named HUN Alcohol Free (AF) in 2021 in the UK region, made from South African Chenin Blanc. It has an ABV of 0.5% and is vegan.
U.S.-based E. & J. Gallo Winery announced the acquisition of more than 30 wine brands from Constellation Brands, Inc. in 2021.
Similar recent developments related to companies offering non-alcoholic wine have been tracked by the Fact.MR team, which are available in the full report.

Fact.MR has provided detailed information on non-alcoholic wine prices, manufacturers positioned in regions, sales growth, production capacity and speculative production expansion, in its recently released report.

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Europe bets on frozen wines without alcohol

The negative impact of the pandemic was evident in European countries, affecting manufacturing units and supply chains across the region. Countries like Italy and France suffered immense losses due to the closure of restaurants and several non-alcoholic wine chains.

However, as the government lifted lockdown restrictions, various manufacturers have seen the road to recovery, primarily the frozen non-alcoholic wine industry. Europe is the largest market for frozen non-alcoholic wine, which is attributed to lifestyle convenience and improved living standards.

Additionally, players in the frozen alcohol-free wine market are capitalizing on adding health benefits to alcohol-free wine products, while improving product quality and availability, which in turn helps the industry non-alcoholic wine to get back on your feet. Track.

The dairy industry is also seeing demand in Europe, with consumers showing increasing interest in products that are low in sugar and require minimal processing. Non-alcoholic frozen dairy-based wine products like ice cream and yogurt are rich sources of vitamin D, calcium and phosphorus, making them a healthy choice for consumers in the region.

China embraces the trend of non-alcoholic ready-to-eat wines

China, being the most affected region during the pandemic, is slowly employing growth strategies to bring the non-alcoholic wine industry to its pre-pandemic status. The supply chain disruption has significantly hampered the growth of the industry in the region.

With some easing and virus containment, manufacturers in China have resumed production activities to fill the gap between demand and supply in the country. Due to a rapidly changing lifestyle in the country, consumers prefer small amounts of ready-to-eat meals over large conventional meals. This fueled the demand for ready-to-eat meals on the go.

The presence of key market players in the country along with a growing class of health conscious customers are supporting the gradual recovery of the non-alcoholic wine industry in the region. Various manufacturers are incorporating innovations into prepared meals, enriching them with essential vitamins and other health supplements, without compromising taste.

The demand for ready meals will continue to grow in the coming years owing to its benefits such as reduced drinking time and ease of availability, thus driving the overall growth of the non-alcoholic wine industry.

India focuses on home delivery of food and groceries

India’s non-alcoholic wine industry has suffered a major setback due to restrictions and travel and the increasing spread of the virus. Due to disruptions in the supply chain, non-alcoholic wine products have not reached local shelves and markets.

There is a strong presence of local players in the Indian non-alcoholic wine industry who are making conscious efforts to resume their operations. Various eateries and eateries are now focusing on delivery and takeout services to help the non-alcoholic wine industry recover from the impact of the pandemic.

Other third-party non-alcoholic wine delivery companies such as Zomato Pvt. Ltd, Swiggy Pvt. Ltd., and Non-Alcoholic Winepanda also launched grocery delivery services that have helped many manufacturers, retailers and restaurants gain momentum and experience growth in demand and sales.

Main long-term trends

The global non-alcoholic wine industry will continue to experience strong demand in various parts of the world. The introduction and adoption of facilities such as non-alcoholic wine delivery services have propelled the demand, showing a rising trend in the non-alcoholic wine industry. Some long-term trends in the non-alcoholic wine industry are:

Alcohol-Free Plant-Based Wines

Growing consumer interest in organic and vegan diets will lead to rapid expansion of the non-alcoholic wine industry, allowing various new entrants and existing players to gain a firm foothold in the market.

Combining science and nutrition

Using technology to improve the quality of wine and non-alcoholic beverages will drive sales in the non-alcoholic wine industry. Non-alcoholic wine products with improved nutritional value, sustainability and ethical impact will continue to accelerate demand in various segments of the non-alcoholic wine industry across the globe.

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