The Business Case for Better Nonalcoholic Wine: Why Hospitality Can’t Afford to Ignore the Market
- Alex
- Apr 1
- 12 min read
There’s a quiet revolution happening in hospitality. It isn’t loud, and it isn’t flashy—but it’s growing fast. More and more guests are choosing to skip the alcohol, and they’re not just looking for a sugary soda or a mocktail. They want real, thoughtful, grown-up options—and that includes great wine. The nonalcoholic wine market is no longer niche. It’s a global movement, and it’s time for hospitality to pay attention.
Here’s what the data says.
The Global Growth of Nonalcoholic Wine
The global nonalcoholic wine market was valued at $2.26 billion in 2023 and is projected to grow at a CAGR of 7.9% through 2030.
By 2030, it's expected to exceed $2.6 billion.
Growth is driven by health-conscious consumers, the rise of the sober-curious movement, and improvements in taste and variety.
The Canadian Perspective
In Canada, nonalcoholic beverage sales grew 24% year-over-year, hitting $199 million in 2024.
Nonalcoholic wine is a growing part of that, with increased shelf space, online availability, and retail adoption.
Canadian consumers are among the most enthusiastic adopters of alcohol-free options globally.
Hospitality: A Missed Opportunity
Most nonalcoholic wine is still sold in retail, but on-premise (hospitality) is quickly catching up.
Venues like the Four Seasons Philadelphia have doubled their NA beverage sales in just five months by offering a proper menu.
Restaurants that neglect this segment risk alienating a growing and loyal customer base.
Consumer Expectations Are Changing
70% of Dry January participants say they’ll continue to order NA drinks beyond January.
Today’s guests expect inclusive, sophisticated beverage menus.
Nonalcoholic wine is no longer a “nice to have”—it’s becoming a standard.
What Forward-Thinking Venues Are Doing Right
Offering multiple, high-quality NA wine options—not just one token bottle.
Training staff to speak confidently about nonalcoholic offerings.
Treating non-drinkers with the same respect as drinkers.
Why This Matters: The business case is clear: nonalcoholic wine is a growing revenue stream, a marker of modern hospitality, and a way to stand out in a competitive industry. But more than that, it’s a way to truly welcome everyone at the table.
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The non-alcoholic wine market is experiencing significant growth, presenting notable opportunities for the hospitality industry both globally and within Canada.
Global Market Insights:
Market Expansion: The global non-alcoholic wine market was valued at approximately USD 2.26 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2030.
Consumer Trends: The increasing popularity of initiatives like "Dry January" and a general shift towards healthier lifestyles have led to a rise in consumers seeking alcohol-free alternatives. This trend is particularly evident among younger demographics, such as Gen Z and Millennials, who are more inclined to explore non-alcoholic options.
Canadian Market Insights:
Market Growth: In Canada, the non-alcoholic wine market generated revenues of USD 23.4 million in 2023 and is expected to reach USD 49.8 million by 2030, reflecting a robust CAGR of 11.4% from 2024 to 2030.
Sales Performance: Between June 2023 and June 2024, the Canadian non-alcoholic beverage market experienced a 24% increase in total sales, amounting to $199 million. Non-alcoholic beer dominated this category, accounting for 76% of total sales with a growth rate of 23.3%. Non-alcoholic spirits also saw significant growth, with sales up by 67.7%.
Opportunities in the Hospitality Sector:
Revenue Potential: The hospitality industry's focus on non-alcoholic beverages is yielding positive financial results. For instance, the Four Seasons Hotel Philadelphia reported that its non-alcoholic drink sales doubled within five months of introducing a dedicated menu.
Consumer Demand: An increasing number of consumers are seeking sophisticated, alcohol-free options when dining out. By expanding non-alcoholic offerings, hospitality venues can enhance guest satisfaction and tap into a growing market segment.
Incorporating quality non-alcoholic wines into hospitality offerings not only aligns with evolving consumer preferences but also presents a strategic opportunity to boost revenue and enhance the dining experience for all patrons.
If you're looking for support in this area, reach out to us, we'd love to work with you!
A dive into the data (for all those true geeks out there):

Nonalcoholic Wine Market Growth and Demand (Global & Canada)
Global Market Overview
Market Size & Growth: The global nonalcoholic wine market is already a billion-dollar industry and expanding rapidly. Recent estimates put current global sales around €1.25 billion (approx. $1.3–1.4 billion USD) in 2024. This is projected to roughly double by 2031 – reaching about €2.48 billion (≈$2.6 billion) – implying an annual growth rate of ~11.6%. Another analysis by Fact.MR projects growth from $2.57 billion in 2024 to $6.94 billion by 2034 (about +10.4% CAGR), underscoring strong long-term optimism for this sector.
Year-Over-Year Performance: Consumer demand is surging year-over-year. In 2023, global alcohol-free wine volume grew ~+7% compared to the prior year. This outpaced the overall wine market, which is in decline, and even the modest growth in no-alcohol beer (+6%). In value terms, nonalcoholic wine sales are growing even faster than volume (reflecting premiumization and consumers’ willingness to pay for quality). Industry-wide, the broader no/low-alcohol category (beer, wine, spirits alternatives combined) roughly doubled in size from 2019 to 2023, reaching nearly $20 billion in global sales. According to NielsenIQ, the low/no category saw 35%+ global growth in 2023 alone, indicating explosive expansion off a small base.
Regional Highlights: Europe currently leads in nonalcoholic wine consumption – accounting for about 48.5% of global revenue (≈€605 million) – with well-established markets in countries like Spain and Germany. Notably, alcohol-free wines and beers have already captured about 10% market share of the total beverage alcohol market in Spain and Germany. North America (especially the U.S.) and other regions still represent a smaller share today but are expected to see the fastest growth in coming years. For example, market studies anticipate North America to outpace Europe in growth rate, as health trends and product availability increase. Industry forecasts by IWSR project that “no-alcohol” beverage volume in markets like the U.S., Canada, and Brazil will grow ~7–18% annually through 2028, far higher than in more mature European markets.
Canada: Market Growth and Trends
Nonalcoholic beverages have seen rapid growth in Canada’s retail sector. NielsenIQ data show off-premise (retail) sales of no-alcohol drinks reached C$199 million for the 12 months ending mid-2024 – a 24% increase over the previous year. The chart above illustrates this surge, rising from about C$160.5M to C$199M in one year (and up from C$137M two years prior), marking the strongest dollar-growth year in the past three years.
Category Breakdown: The Canadian no-alcohol beer segment dominates, accounting for roughly 76% of total sales by value. Nonalcoholic beer alone grew ~23% year-over-year in Canada, reflecting its broad availability and acceptance. Nonalcoholic spirits (alcohol-free distilled alternatives) make up a smaller share but are the fastest-growing segment – Canadian sales of spirit alternatives jumped +67.7% in the past year as consumers seek out mocktails and “dry bar” experiences. By contrast, nonalcoholic wine remains a niche but emerging segment in Canada – it constitutes a portion of the remaining ~24% of sales. While exact figures for wine are not broken out in retail data, it’s clear this category is expanding: industry observers note NA wine shelf space in stores has multiplied and sales are climbing in the 20–25% annual range (similar to the overall category growth). Canadians are actually considered among the top consumers globally of no/low alcohol beverages on a per-capita basis, suggesting a receptive market for alcohol-free wine options.
Retail Adoption: Mainstream retailers and liquor stores in Canada have embraced the trend. For instance, the Liquor Control Board of Ontario (LCBO) now stocks a dedicated range of alcohol-free wines and beers (it introduced its first NA products in 2018 and has expanded to dozens of offerings). The LCBO reports nonalcoholic product sales have been growing at roughly 20% year-over-year on average, even within their traditionally alcohol-focused stores. This strong retail demand is leading to greater shelf space and variety – from dealcoholized reds and whites to sparkling brut alternatives – in supermarkets, specialty beverage shops, and online stores across the country.
Consumer Drivers and Trends:
Health & “Sober Curious” Lifestyle: A key driver of nonalcoholic wine demand is the consumer pivot toward health and wellness. Many people who enjoy wine are looking to reduce alcohol intake for fitness, mental health, or general well-being reasons. The “sober curious” movement – in which individuals experiment with cutting out or reducing alcohol – has gained particular popularity among Millennials and Gen Z. This is fueling interest in wine alternatives that deliver the taste and ritual of wine without the alcohol. Surveys show younger and middle-aged adults with higher incomes are leading this shift, prioritizing healthier social drink options. Importantly, moderation is becoming mainstream rather than niche: global data indicates the population of no-alcohol beverage drinkers is rising steadily year-on-year in many key markets. Authorities highlighting alcohol’s health risks (e.g. new guidelines linking alcohol to cancer risk) have further reinforced consumers’ resolve to seek low- or no-alcohol choices.
Balancing, Not Replacing: Most alcohol-free wine consumers are not strict abstainers; rather, they are moderate drinkers who integrate nonalcoholic options into their lifestyle. In Canada, 75% of shoppers buying nonalcoholic beverages also still purchase alcoholic drinks. This indicates that people use NA wines to substitute on certain occasions (weekday evenings, work functions, “Dry January”, pregnancy, etc.) while still enjoying regular wine at other times. Brands are recognizing this “balanced moderation” trend – the goal is to appeal to consumers who might toggle between alcoholic and alcohol-free offerings depending on context. For example, a wine drinker might have an alcohol-free sparkling rosé at a lunchtime gathering but a standard glass of wine at a weekend dinner. This dynamic means the demand for NA wine is additive to the market: it’s bringing in new consumption occasions rather than cannibalizing all traditional wine sales.
Improved Taste & Variety: Historically, alcohol-free wines had a reputation for inferior taste, but product quality has improved markedly, encouraging demand. Advances in dealcoholization technology (vacuum distillation, reverse osmosis, etc.) allow producers to remove alcohol while better preserving aroma and flavor. As a result, the latest generation of NA wines more closely mimic the flavor profile of their alcoholic counterparts. Consumers can now find a growing variety – from bold de-alcoholized Cabernet Sauvignons and Chardonnays to sparkling brut and rosé alternatives – that are enjoyable in their own right. This expansion of styles (often with elegant branding and packaging similar to regular wine) has attracted curious wine lovers to give NA wine a try, driving repeat purchases if the experience meets the “second glass test” (i.e. the product is tasty enough that you’d drink a second glass). Overall, taste, availability, and brand choice in nonalcoholic wine are all improving, which further accelerates consumer adoption.
Social Trends and Year-Round Demand: What began with specific challenges like “Dry January” or “Sober October” has evolved into a year-round behavioral shift. Notably, 70% of on-premise consumers who tried nonalcoholic beer, wine or spirits during Dry January say they intend to continue ordering them beyond January. This suggests that demand for NA wines is not limited to novelty or temporary abstinence periods – many consumers are permanently incorporating these drinks into social routines. The stigma around not drinking alcohol at social events is fading; it’s increasingly acceptable (even trendy) to attend a dinner party or restaurant and sip an alcohol-free Merlot or sparkling wine without feeling out of place. The focus is shifting to the experience – flavor, complexity, and inclusivity – rather than the alcohol content. As moderation becomes “mainstream” and even financially motivated (some consumers cite wanting to save money by drinking less alcohol), alcohol-free wine provides a solution that aligns with both personal and social trends.
Retail vs. Hospitality Sector Insights
Off-Trade (Retail): The majority of nonalcoholic wine sales occur in retail channels (off-premise). Globally, about 62% of nonalcoholic wine volume is sold via retail outlets such as grocery stores, liquor stores, specialty bottle shops, and online retailers. This is expected, as retail allows consumers to easily find and try a range of products. The rising placement of NA wines on supermarket shelves and e-commerce platforms has made the category more visible and accessible. In Canada and elsewhere, large retailers expanding their selections (e.g. dedicated “zero-proof” sections) have been crucial in boosting awareness. Competitive pricing and promotions in retail also help attract the curious consumer to pick up a bottle of alcohol-free wine. As one example, a Vancouver alcohol-free bottle shop reported that wine and chilled ready-to-drink NA products are among its best sellers, indicating healthy retail demand. Going forward, continued retail expansion – including placement alongside regular wines – is expected to drive further growth as these products become a staple in shopping carts.
On-Trade (Hospitality): The hospitality sector (on-premise venues like restaurants, bars, hotels) is also rapidly adapting to the no-alcohol trend, though it currently accounts for a somewhat smaller share (about 38% of NA wine sales globally occur in on-trade channels). Nonetheless, this share is growing as consumer expectations change. Many restaurants have begun curating alcohol-free wine lists and offering zero-proof drink pairings with meals. “Dry bars” – fully alcohol-free cocktail bars and lounges – have emerged in major cities, creating social spaces centered on sophisticated NA beverages. Even traditional bars are adding creative mocktail menus that often utilize dealcoholized spirits and wines as bases. The result is that consumers abstaining (temporarily or long-term) have more options when out socializing, which boosts on-premise demand for NA wine. Hospitality operators are seizing this as a business opportunity: offering appealing nonalcoholic wines can attract customers who might otherwise just stick to water or soda. The finding that most patrons intend to continue ordering NA drinks beyond Dry January means restaurants and bars see a year-round revenue stream, not just a seasonal fad. In Canada, for example, a number of bars and eateries now proudly advertise alcohol-free craft beer and wine selections, and even upscale establishments have introduced zero-proof wine pairings for tasting menus. This cultural shift in on-premise environments – normalizing the consumption of a cabernet or bubbly with 0.0% ABV – further solidifies nonalcoholic wine as a lasting segment, not a fleeting novelty.
Market Outlook and Projections
Continued Double-Digit Growth: Market research consensus is that the nonalcoholic wine sector will continue its strong growth trajectory in the near and mid term. Numerous forecasts project double-digit percentage annual growth in global sales revenue for at least the next 5–10 years. For instance, Meticulous Research forecasts ~11.6% CAGR through 2031, and Fact.MR anticipates ~10% CAGR through 2034. This is a significantly higher growth rate than the traditional wine industry, which is flat or declining in many regions. By 2030 and beyond, it’s expected that alcohol-free options will comprise a materially larger share of the overall wine market. IWSR predicts that across key markets, no-alcohol beverages’ share of total beverage alcohol will rise above 3% by 2028 (up from a smaller base today) – a notable shift in an industry historically dominated by conventional alcoholic drinks.
Global Expansion & Innovation: The global footprint of nonalcoholic wine is set to expand. Europe may continue to lead in absolute consumption, but the fastest growth is slated for North America, Asia-Pacific, and emerging markets as awareness spreads. In particular, the United States is forecast as a high-growth market (volume CAGR ~15–18% in the no-alcohol category over 2023–2028), which bodes well for wine producers targeting American health-conscious consumers. Canada, while a smaller market, is expected to see above-average growth (~7–8% volume CAGR in no-alcohol beverages through 2028) as it catches up in product offerings. Product innovation will be a critical factor in sustaining this momentum. We can expect more wineries and beverage companies to launch alcohol-free wine variants, improving on taste and variety. Indeed, many major beverage firms and winemakers have already entered the space: about 50% of leading beer/wine/spirit companies have introduced no-alcohol versions of their products. This competition is driving rapid improvements in quality and a broader range of styles (e.g. oak-aged dealcoholized wines, terroir-specific NA wines, etc.).
Retail & On-Premise Integration: Both retail and hospitality sectors are anticipated to integrate nonalcoholic wines more fully into their core offerings, treating them less like a novelty and more like a standard product line. Supermarkets might place NA wines in the wine aisle rather than a separate section as the category mainstreams. Restaurants and hotels are likely to routinely offer alcohol-free wine options on drink menus, just as they do with vegetarian food options – an expected accommodation. The increased availability and normalization will reinforce sales growth, creating a virtuous cycle of demand.
Consumer Adoption Outlook: From a consumer standpoint, all indicators suggest that the “mindful drinking” movement is here to stay. Younger generations reaching legal drinking age are generally consuming less alcohol than predecessors and are open to alternatives, suggesting a sustained demographic shift in beverage preferences. As more consumers experience high-quality nonalcoholic wines, repeat purchase rates and word-of-mouth recommendations should grow. Importantly, even if economic conditions tighten, some analysts note that no/low-alcohol products could be resilient – they offer a way to enjoy the social and flavor aspects of wine without some of the costs (both financial and health-related) of alcohol. In summary, industry analysts and stakeholders see the nonalcoholic wine market moving out of its infancy into a robust growth phase. If current trends hold, within a decade we could see alcohol-free wines occupying a significant niche in the global wine industry – measured in multiple billions of dollars – supported by both retail sales and hospitality demand, and firmly entrenched in consumer drinking habits worldwide.
Sources: Recent market research and industry analysis from 2023–2025 were used to compile these insights. Key references include NielsenIQ data on Canadian sales, IWSR’s global no/low alcohol market reports, and studies by Meticulous Research and Fact.MR on market size projections. Additional context on consumer trends was drawn from news articles and expert commentary in 2023–2024, as well as industry publications highlighting the rapid rise of the nonalcoholic beverage sector. All data reflect the latest available information on the growth of nonalcoholic wine globally and in Canada.
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