In the weeks leading up to New Year’s Eve 2024, food and wine writers came out in abundance to rank the “best” alcohol-free wines available to consumers. At the same time, a slew of new products joined the already-burgeoning ranks of alcohol-free wines available in the U.S. market. The “best” rankings were in part a nod to Dry January, the practice of abstaining from alcohol for the first month of the year that has gained traction among consumers in recent years. While Dry January and the similar Sober October drive sales in the alcohol-free wine segment, marketers say that’s just the beginning.
“The concern about alcohol consumption is not just during Sober October or Dry January,” says Steve Lohr, president and CEO of J. Lohr Vineyards & Wines, which owns Ariel non-alcoholic wines. “It’s really grown to become something people think about throughout the year. Non-alcoholic wine is one of the strongest categories out there, and it’s attracted a lot of competition. People are just not drinking as much, especially the 20- and 30-somethings.”
Brooks Addington, CEO of Töst in the Constellation Brands portfolio, says the category grew at double digits in 2024. And with success comes imitation. “There has been a proliferation of brands entering the category and we expect this to continue in 2025,” he says. In fact, growth rates for non-alcoholic wines have been stronger than those of low-alcohol wines, another hot category in the wine sector. “No-alcohol is a smaller piece of business today, but the growth rates are significantly higher,” says Brie Wohld, vice president of marketing for Trinchero Family Estates. “I think we’re going to continue to see more innovation and more growth over time.”
The innovation is certainly there. From Trinchero, Fre added an Alcohol-Removed Pinot Grigio to its lineup in autumn of 2024, bringing the line to a total of ten offerings. New Zealand’s Giesen 0% is another major player in the space. The import recently added a Chardonnay to its lineup. Stella Rosa Non-Alcoholic wines from Riboli Family Wines has also made inroads with a range of offerings. Numerous other brands have entered the fray as well.
Ariel from J. Lohr Wine Estates is one of the category groundbreakers, having been on the market since the 1980s. The company refreshed the Ariel brand at the end of 2024 with a new label that “evokes a sense of botanicals and good health.” Lohr says the time was right for a refresh. Not only had the previous label been in use for 18 years, but Lohr acknowledges the increased competition in the non-alcoholic wine segment. “We haven’t put as much focus on Ariel over the years, but now that the market’s really picking up, [we wanted to] have one of the best alcohol-removed brands out there or we risk being forgotten.”
Evolving Category
The double-digit category growth numbers are impressive but overall volume is still minuscule compared to the standard wine category. And while that’s unlikely to change in the foreseeable future, marketers and retailers are bullish on the non-alcoholic wine category, especially in light of the declines seen for standard wine consumption.
Chris Becker, founder of Better Rhodes, an online marketplace for alcohol-free wines, spirits, and other beverages, says he views the market as entering its third generation. In its early stages, non-alcoholic wine was little more than grape juice. Eventually, winemakers began to test methods for de-alcoholizing wines, with a few brands emerging as gold standards for the category. Now, “traditional winemakers across the country—across the world—are really leaning into seeing this as a legitimate category,” he says. “The quality is going up. A lot of it’s still high priced, which is one of the challenges, but it’s definitely moving from early adoption to broader consumption.”
In addition to selling a broad range of non-alcoholic wines, Better Rhodes has created its own lines: Wander and Found ($18 a 750-ml.) and the recently introduced Splash ($10). Becker says he’s seen consumer pushback on pricing of non-alcoholic wines with the reasoning that no-alcohol should result in a lower price. Typically, non-alcohol wines are more difficult to make but “people don’t want to hear that.” Splash is designed to address the cost concerns by offering “a high-quality wine at a reasonable price.”
The evolution of the non-alcoholic wine segment also includes trade acceptance. Enore Ceola, CEO of Freixenet Mionetto USA, says there was once a stigma attached to the products, but now they are widely accepted and are included in the drinks repertoire of many consumers. The group introduced Mionetto Alcohol-Removed Sparkling Wine in late 2023 and is expanding the brand nationally this year. Freixenet Alcohol-Removed Sparkling White and Rosé were introduced in December 2020. The timing could work well for Mionetto and other newer brands to the market. “I think we’re in a phase where the consumer wants to explore, they may be tired of what was in the market before,” Ceola says. “They liked the idea of newcomers. We were in the right place at the right time and then whoever comes into the market in the next two or three years [has a good shot at success].”
Trinchero Family Estates is one of many wine producers leaning into consumer demands. “In the non-alc space, I think there’s probably a lot of news coming soon from Trinchero,” says Wohld, hinting at new developments for 2025. The company is already heavily invested in the category. Aside from Fre, “We also added two non-alcohol SKUs in our Seaglass brand—a non-alcohol Sauvignon Blanc and Pinot Grigio—and we see a lot of upside potential there. And then we’ve had a brand called Luminara, which is a line of Napa Valley-appellated, alcohol-removed wines. We’re trying to come at this from every major price point from the high end at Napa Valley to a mid-range and a more value proposition from Fre to create more options for the trade and for consumers.”
The Consumer Demographic
So where is the consumer enthusiasm coming from? Alex Evans, chief marketing officer for Precept Wines, says her company has had to expand its target audience for its two non-alcoholic wine entrants: Waterbrook Clean and Zilch. “The most interesting tidbit that we’re seeing about the consumer is that people who do enjoy wine with alcohol in it are also one of our core consumer groups drinking de-alcoholized wines,” Evans says. “I think a lot of non-alcoholic wine consumers haven’t completely walked away from alcohol. They’re still wanting to enjoy wine nightly, but they’re paring down and choosing the alcohol-removed or non-alcoholic wines as a supplement to their weekly imbibing. We had a narrower view of who that consumer was when we entered the category, and it just continues to broaden.”
Ceola agrees, noting the range of consumers who are incorporating non-alcoholic wines into their drinking repertoires. “Right now the people most interested seem to be the younger generations, but as the category gets more widespread, I think there’s opportunity with older demographics,” he says. “They drink alcoholic drinks, they drink non-alcoholic, they drink a mix. Wohld says a term has emerged for that particular consumption pattern, particularly if it occurs in a single setting. “Zebra striping” is a moderation strategy where consumers alternate between alcoholic and non-alcoholic beverages to limit overall alcohol consumption.
Becker of Better Rhodes says his core audience is females aged 35-55, although “we do see some Gen Z purchasing and baby boomers are starting to really pick up on it as well,” he says, noting that data suggests Gen Z and Millennial consumers drink approximately 20% less than Gen X. “You’ve got the sober curious and mindful drinking, and very much the health and wellness focus,” he says. In addition, pregnant women and people consuming THC or cannabis can consume alcohol-free drinks and not feel left out in social situations.
Adrienne Stillman Krausz, co-founder of Dry Goods Beverage Co., had a personal interest in creating an online marketplace for non-alcoholic beverages. Stillman Krausz made her career in the craft spirits and cocktail world and has authored two books on the subject. Her husband and Dry Goods Beverage Co. co-founder is Jake Krausz, the estate director for Arkenstone Winery. Both wanted alcohol-free options to mix in with their alcoholic beverage consumption, Stillman Krausz says. Finding limited options, they launched their online store in 2021.
“What we really discovered was there was this whole ecosystem of entrepreneurs who had a really similar experience to us in that they wanted to either reduce or cut out alcohol entirely,” Stillman Krausz says. “And for most people it’s reduce, not eliminate—that’s true for a lot of the producers as well as for the customers.” She adds that “demand is growing leaps and bounds, and we’ve seen incredible growth across the board.”
Retail Placement
The lack of alcohol in these wine-like beverages opens the door to more retail options. “As an NA beverage, we are not limited to the confines of alcohol regulatory restrictions, allowing us to sell in an array of off-premise retailers,” says Addington. “While we do sell in beverage alcohol retailers, grocery remains the largest seller of all NAs.”
Traditional beverage alcohol retailers are increasingly dedicating space for non-alcoholic wines as the category growth continues. “I think it’s a category that’s best served through its own space within the store, making sure that the shopper is very aware that they’re shopping in a no-alcohol space, then the trial and discovery can happen there within the products that all fall within that same product profile,” Wohld says.
The Party Source in Bellevue, Kentucky, carries more than 50 alcohol-free wine SKUs and has dedicated space specifically for alcohol-free products. “We have leaned into non-alcohol beverage products,” says president and CEO Jon Stiles. “Two years ago we devoted an entire 32-foot aisle to all non-alcohol beverage products and that includes wine, beer, and spirits, as well as non-alcohol alternative products. We wanted these products to stand out. Our experience early on was that the non-alcohol consumer was shopping across all three categories of non-alcohol beverages.”
White Horse Wine and Spirits in Absecon, New Jersey has ramped up its selection as demand continues to grow. “At first, we carried about five SKUs each of beer and wine, with no non-alcoholic spirits in sight,” says Ryan Oehmsen, co-owner and director of wine and spirits. “Now, we’ve expanded to 31 wine and spirits SKUs, 20 beer SKUs, and 12 CBD/THC products. We’ve dedicated both a warm shelf section and a full door in the cold box to these products.”
West Texas retail chain Pinkie’s hasn’t fully committed yet. Pinkie’s president Austin Keith says alcohol-free wines have been shelved with their full-alcohol counterparts, but that could be changing this year. “I experimented for Dry January, putting the [alcohol-free] spirits, beer and wine in one section,” he adds.
On-Premise Inroads
Freixenet Mionetto is also targeting the on-premise for growth, although Ceola admits it’s currently a “slow-development channel” with most of the non-alcoholic activity on the cocktail side of the business. Addington has made a big push for Töst in the on-premise. “We have engaged everything from independents to chains to sporting venues,” he says. More than half of customers don’t drink alcohol, but with alcohol-free wines “there is a considerable up-sell for the establishment, and it provides that consumer with the same level of experience offered to those that drink.
“There is of course a learning curve for the buyers, having the right distribution partners, and then ultimately getting on menus so the end consumer knows you’re there,” he adds. “We’re excited to see more venues and chains taking the category seriously and carving out space for it.”
For Fre, Trinchero Family Estates added 187-ml. 4-packs in 2023. “This can open some doors in the on-premise channel because it allows for smaller portion sizes, less wasted product,” Wohld says. “We see a lot of interest in the on-premise channel, but I think while people are curious and they certainly want to talk about it, there has been some hesitancy to add it to the menu. We think these 187-mls. are going to help crack that code because it reduces the risk for the restaurateur and helps them get a sense of how much demand there will be from their guests.”
Whether on-premise, off-premise, or direct to consumer, marketers agree that momentum is strong. “The taste profile and the quality continues to improve every single year as winemakers like ours are continuing to push the envelope of how we make this wine taste even more similar to traditional wines that they’re replacing,” says Evans. “As quality and taste profile continue to improve, I think consumption will continue to grow. Will it be as large as our traditional wine categories? Probably not, but I think that there’s a tremendous amount of runway.”