For younger LDA consumers, the overriding motivation for purchasing lower-alcohol wine is a desire to stay in control, unsurprising in a world of constant connectivity. Additionally, Gen Z and Millennial consumers are motivated by the fact that low- and no-alcohol wines tend to be lower in calories and considered to be “better for health,” says Wine Intelligence in a new report.
What motivates those who buy low- or no-alcohol wine is an important question, given that the US is a key market for low- and no-alcohol wine, and is expected to continue to grow, with a forecast volume CAGR of almost 10%, 2020 to 2024, according to IWSR data.
It’s important to understand that Wine Intelligence research shows 64% of regular wine drinkers in the US are not actively moderating their alcohol consumption. Among the one-third of wine drinkers who are moderating, 19% do so by not drinking alcohol at certain occasions, 14% by switching to low-alcohol options at selected occasions, and 12% by switching to non-alcohol drinks instead.
A higher proportion of those who are moderating are from the LDA Gen-Z consumers and younger Millennials (ages 21-34) age cohort. Across age groups, more men than women are seeking out low or no-alcohol wines.
In terms of awareness of low- and no-alcohol wine, this is proportionally quite low compared to other types of wine, with all consumer demographics having similar levels of awareness.
There is, however, a more pronounced difference between lower-involved wine consumers and higher-involved wine consumers, with higher-involved consumers having a greater awareness of both wine that is made to be lower in alcohol, and wine that is naturally lower in alcohol.
When looking at the barriers to purchase low- and no-alcohol wine, Wine Intelligence says its data shows brand owners have an opportunity to improve the perception of low-alcohol wine with younger LDA wine drinkers who say the main barrier to purchasing lower-alcohol wine is that it does not contain enough alcohol to feel an effect. Additionally, they perceive low-alcohol wine to be ‘not really wine’, their favorite brand doesn’t offer a low-alcohol option and lower taste and quality perceptions.
The key opportunity for producers of low- and no-alcohol is to focus on both the core potential drinkers – Gen Z and Millennials – and the functional benefits of supporting a moderating lifestyle, coupled with benefits such as lower calories and lighter, fresher flavors, says Lulie Halstead of Wine Intelligence.
