Brands that are successful in navigating the barriers of taste, price, pack format, availability, and overall consumer education will eventually dominate in the no/low space. Many brands aimed at late-night partying and dark spirits events have found it more difficult to gain consumer acceptance.Īs the sector continues to define itself, the no/low alcohol market is still in its early stages in many categories and geographies. Only 5-6% of no/low consumers drink it after 11 p.m., according to allied analytics. While evening occasions at home, such as socialising and mealtimes, are the most popular times for no/low beverages across all demographics, millennials and higher-income consumers in all markets are more likely to use no/low products to unwind or post-exercise. Further enhancements in the online shopping experiences of customers for non-alcoholic spirits will help the market grow in the future. The majority of non-alcoholic spirit manufacturers are selling their products through e-commerce channels, with facilities like quick delivery along with offering several discounts and offers inspite of the high prices of non-alcoholic spirits which is attracting many consumers to purchase non-alcoholic spirits online. The proliferation of e-commerce in the field of non-alcoholic spirits is providing and will continue to provide a major boost to the market in the future. To meet that demand, beverage alcohol companies have made significant investments in the development of a number of innovative new products, and many established mainstream brands have recently crossed over to develop no/low alcohol versions of their popular beer, wines, and spirits. While January has become a popular month for people to cut back or abstain from alcohol, consumers around the world are increasingly interested in no- and low-alcohol drinks. Another advantage of non-alcoholic drinks is that consumers are less likely to overdo it and develop a late-night junk food craving as a result of consuming one too many drinks.Īccording to IWSR, in 2021, the volume of no- and low-alcohol beer/cider, wine, spirits, and ready-to-drink (RTD) products increased by more than +6% in ten key global focus markets, giving them a 3.5% volume share of the industry. Non-alcoholic spirits contain up to 90% fewer calories than full-proof liquor. The consumption of fewer calories is a significant advantage of no-and-low alcoholic cocktails. Most non-alcoholic beverages are taxed at a standard rate of 12-18% or at the highest rate of 28%.Alcoholic beverages are not known for being particularly healthy. The sector is also heavily taxed to deter consumers from excessive consumption of sugary beverages. Meanwhile, India’s revenue per person from sale of such beverages was estimated at $8.89 in 2019, much lower compared to markets such as $1,030 in the US and $67.05 in China. However, despite the size and scale of the market, India’s per capita annual sales at 21.36 litres in 2018 is much lower than per capita sales in other developing countries like the Philippines that stood at 111.89 litres and Vietnam at about 69.75 litres in the same year. The survey found that 35% of the companies have introduced new products in the Indian market, which include zero-sugar or sugar-free products and other products like tea and coffee-based drinks, and organic drinks," the report said. “Existing companies are diversifying their product portfolio and many startups and small and medium-sized enterprises have entered this sector in the last 10 years. The market size was valued at $12.15 billion in 2019 compared to $3.5 billion in 2010. “While the market share of CSDs is the highest, the highest socio-economic class A is moving away from the consumption of CSDs," the report said.īetween 20, India’s non-alcoholic beverages market grew at 14.5% in terms of total sales volume, and 13.72% in terms of total sales value. However, the report pointed to a shift in consumption patterns, indicating that CSDs are growing at a lower rate, while consumption across segments such as packaged water, sports drinks, and tea and coffee-based drinks is increasing.
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