Lower-alcohol wine sector losing out to beer and mocktails – study

The lower-alcohol wine segment is not fulfilling its potential as consumers shift to other low-alcohol alternatives, according to Wine Intelligence.

The market researcher’s new study – called Global SOLA Wine Report: Sustainable, Organic and Lower-Alcohol Wine Opportunities 2018 – reveals that lower-alcohol wines are currently struggling for attention.

Although the lower-alcohol wine category may deliver some future potential, driven by consumers increasingly opting to moderate their alcohol consumption, drinkers state that they are switching to alternatives beyond wine including mocktails, adult soft drinks and beer for low- or no-alcohol occasions.

According to Wine Intelligence, the key concern for lower-alcohol wine is the perceived poor quality and taste of these wines.

The report uncovers that the strongest opportunity for lower-alcohol wine is in New Zealand and Australia, ranked first and second respectively.

Among the 11 key wine markets analysed, Germany, Sweden and Japan scored lowest in the opportunity index for lower-alcohol wine.

Similarly, non-alcoholic wines see the most potential in Sweden and Nordic countries, with Japan and Portugal at the bottom of the opportunity index.

Wine Intelligence CEO Lulie Halstead said: “The Wine Intelligence SOLA report and index provides definitive, consumer-led insight to enable wine businesses to make informed decisions to support their investment and product development strategies.”

Last year Tesco launched a new range of low-alcohol wines in the UK after seeing demand for the beverages more than double.

The supermarket believes that demand is set to grow even further after launching a range that is said to be “virtually indistinguishable in taste” from its alcoholic counterparts.

Tesco wine expert Alexandra Runciman, who developed the range, said: “Consumption of alcohol in the UK down is down by 18% over the last decade and we’re seeing more customers looking for a quality wine drinking experience without the alcohol.”