A Breakthrough Year for Low-Alcohol Wines

Dr. Jacopo Mazzeo is a U.K.-based freelance drinks journalist, consultant, and photographer. He contributes to leading trade and consumer publications including Decanter, Wine Enthusiast, Whisky Magazine, and Good Beer Hunting. Jacopo consults on consumer trends and marketing strategies, is a former sommelier, and judges international wine, beer, and spirits competitions. Before he embraced full-time journalism, he studied musicology at the University of Bologna and took a PhD at the University of Southampton. SEVENFIFTYDAILY

It’s a pivotal moment for the no- and low-alcohol wine market, with production increasing and the first geographical indications in the EU

Dealcoholized wine has been around for some time—the first patents date back to the early 20th century—but the recent moderation trend has driven rapid growth for the no- and low-alcohol wine market. According to consumer research firm IWSR, the percentage of American drinkers who consume non-alcoholic beverages more than doubled last year, rising from six to 13 percent. This growth was largely driven by millennials and Gen Z, who now make up 45 and 17 percent of the category’s consumers, respectively. 

“The no- and low-alcohol wine market is poised for significant growth as consumer preferences shift toward more mindful drinking and wellness-focused lifestyles,” says Elena Lottici, the export manager at Italian wine producer Riunite. “Over the next few years, we expect this category to expand its appeal across a diverse audience, driven by innovation and increasing demand for options that combine great taste with moderation.”

While past developments in the category were largely driven by new product releases, the past year has seen the wider wine sector more decisively embrace the segment. This shift is reflected in significant investments in new production facilities—particularly in France—as well as groundbreaking regulatory changes. These include the upcoming launch of the first low-alcohol wines with geographical indication (GI) and permission for dealcoholization to take place within Italian wineries.

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Building on this momentum, the coming months are set to mark a breakthrough for the market, with France and Italy poised to take on increasingly pivotal roles on the international stage. “In Europe,” says Lottici, “countries with strong wine traditions, such as Italy, Spain, and France, are well positioned to lead the way in this space.”

New Developments In Europe

While Germany has long been a world leader in no- and low-alcohol wine production, France has recently moved to the forefront of the category. Last spring, a sizable dealcoholization facility, Le Chai Sobre, opened in the Gers department of southwestern France. The plant boasts an annual capacity of 50,000 hectoliters (around 6.6 million bottles—approximately a third of the production of Germany’s Carl Jung, the world’s oldest and one of the leading non-alcoholic wine producers). It will produce its co-owner’s brand, Moderato, and provide dealcoholization services for other producers seeking to enter this expanding market. 

Bordeaux has also seen a surge of activity in the segment. Following products launched by the likes of Laurent David of the collective Bordeaux Pirate, and Coralie de Boüard—the daughter of Hubert de Boüard of Château Angélusfame—local co-op Bordeaux Families installed its own $2.36 million dealcoholization facility, too. The firm is now working to bring the fruits of this investment to market, aiming to have the segment account for 10 to 12 percent of its total annual production of 300,000 hectoliters by the year’s end.

In Italy, trade associations and the government recently approved a decreeallowing Italian wineries to produce dealcoholized wine within the country (although it’s yet to be signed by the ministry of agriculture). By moving production onto Italian soil, the country is also poised to play a much larger role in the global market for dealcoholized wines.

Greater Premiumization Potential

Dealcoholization offers a major opportunity for regions struggling with declining consumer demand—not only as a way to repurpose otherwise unsold stock, but also to achieve higher potential margins in the process.

“Dealcoholization definitely represents an opportunity for growers in Bordeaux,” argues Anne-Sophie Sobecki, the head of marketing and communication at Bordeaux Families. “We can’t just keep making Bordeaux red if there’s no demand. [Dealcoholization] is a great way to diversify by tapping into a growing market with good premiumization opportunities. Some of our clients are already requesting vintage-dated, no- and low-alcohol labels.”

With its top cuvée priced at $119, super-premium non-alcoholic wine brand French Bloom demonstrates this segment’s premiumization potential. Its rapid success—sales have doubled each year since it launched in 2021—even led Moët Hennessy to acquire a minority stake in the brand last fall.

According to cofounder Maggie Frerejean-Taittinger, the brand targets the large crowd of food and drink enthusiasts who, for various reasons, may not want or be able to consume alcohol. “I wanted to create a sparkling wine to meet exacting standards—it had to be 0.0% ABV, organic, and free from sulfites … without added sugar or preservatives, ensuring purity and a focus on wellness,” she explains. “Beyond these requirements, the goal was for the wine to deliver a sophisticated experience on par with the finest sparkling wines.”

Official Status in the EU

Recent developments in EU regulations are set to further support no- and low-alcohol wine’s premiumization process. In 2021, the EU responded to growing consumer demand for these products by allowing the dealcoholization of GI wines down to a minimum of 0.5% ABV across all member states. France was the first to adopt this change in spring 2024. Under the new regulations, any IGP wine can now undergo dealcoholization down to a minimum ABV of 6%, provided the respective IGPs choose to incorporate this process into their production specifications.

It didn’t take long for GIs to seize the opportunity. Gard, in the northern Languedoc-Roussillon area of southern France, is on track to officially permit the production of dealcoholized wines down to the 6% ABV threshold this year, and some producers are ready to capture the opportunity. Local winemaker Jean-Marc Floutier of Domaine du Grand Chemin, for instance, is looking forward to applying the IGP Cévennes label (a GI in the Gard) to his JMF range of 6.5% ABV wines.

“We make the wines with Cabernet Sauvignon, Cinsault, Grenache, and Colombard—grapes typical of this region,” says Charlotte Duverdier, the domaine’s commercial director. “They are representative of our region, with profiles typical of the south of France. We just need to add a bit of sugar to keep the wines well-balanced.”

More GIs are likely to follow suit in the near future. The IGP Atlantique, which encompasses the entire Bordeaux area and extends further south, has already lowered the minimum alcohol content to 9% ABV. It is believed that the step to reduce this further to 6% is close to being officially confirmed before the end of the year. “There are discussions,” says Sobecki, “but it has not been confirmed yet … This is definitely something that will help a lot of producers in Bordeaux.”

In Spain, the first low-alcohol dry wine was just introduced in February at Barcelona Wine Week. The 9% ABV wine, produced by Jordi Miró from 100 percent Parellada, was not in fact dealcoholized, but takes advantage of the grape’s naturally low sugar content, even when harvested at optimal ripeness. Previously, wines with such low alcoholic content were not allowed within the DO system, but because this wine was made normally, DO status was eventually granted. While there has not been a formal change in regulation yet, it does point to shifting attitudes towards low-alcohol wines.

The Category Gets Competitive

In Italy, progress in the no- and low-alcohol wine market has not been as swift as in France,  but the country does boast a number of high-profile options: Riunite’s Zero Red Semi-Sparkling, for instance, is designed specifically for the U.S. market, mimicking the profile of a semi-sweet Lambrusco, while Maschio Zero White Sparkling is a non-alcoholic alternative to the classic Maschio Prosecco. Leading Prosecco brand Mionetto also introduced its own non-alcoholic version just over a year ago.

These wines, however, are all currently produced outside of Italy—mainly Germany and Spain—due to strict regulations that do not allow dealcoholization to occur on Italian soil. “The only way we could manage to produce our own labels of dealcoholized wine in Italy,” explains Luca Sonn, the proprietor of no- and low-ABV wine ecommerce platform Myalcolzero, “was by circumventing the ban and using a food processing facility, where dealcoholization is permitted.”

The ban has had a significant impact on both the cost of these products and their environmental footprint, due to the extensive transportation required. But with Italy now poised to allow Italian wineries to dealcoholize wine on-site, things are set to change.

“Our long-term plan is to move production to the winery,” confirms Enore Ceola, the CEO and EVP of North America for Freixenet Mionetto USA. “This will require machinery investment to dealcoholize the wine on site, which is important for our long-term goals and plans.”

As both Riunite and Mionetto plan to capitalize on this new regulation by moving all production to Italy, other leading Italian brands are likely to follow suit, with new entrants expected to join the no- and low-alcohol wine market. 

Together, these developments are set to enhance competitiveness within the no- and low-alcohol category, propelling it into a more mature and mainstream phase. This evolution will likely bring clearer segmentation of price points and, most importantly, improvements in the quality, character, and identity of the wines.