Lower alcohol wine: a global trend?

(WineIntelligence) - Will the lower alcohol wine trend sweep the world? It’s a question that many innovation managers in wine businesses are wrestling with at the moment. It’s also the subject of a new Wine Intelligence report, to be published at the beginning of July, which will explore consumer attitudes to lower alcohol wine in eight countries – Canada, Denmark, France, Germany, Sweden, Switzerland, UK and the USA.

Our research scope was a mix of the established lower alcohol markets, and those for whom the category is still in its early stages. In a nutshell, the new Wine Intelligence data shows there is a substantial minority – around 40% of wine consumers in places like the UK, Germany, Canada and the USA – who say they are in the market for lower alcohol wines. A closer look at the data shows that most of these people are defining “lower alcohol” as 9%-10.5%. At alcohol levels of 5.5% and below, market penetration falls to 16% of consumers in the UK, and to 12% in Germany.

This collapse in demand as alcohol levels fall exposes the complexity surrounding the lower alcohol wine category. Motivations for purchase appear to vary widely between consumers. Some opt for very low alcohol by volume (ABV) because in certain countries – like the UK – there is a particular tax break (at 5.5%), which makes the product much cheaper in comparison with standard wines. Others prefer to have slightly lower ABV than standard wine simply because they prefer the taste of a product that naturally has less alcohol in it, such as wines made with the Riesling or Moscato grape. Other consumers say their interest in lower ABV wines comes from increasing concerns about their health, or more draconian drink-drive laws, or simply their preference to stay clear-headed and in control.