Which is growing faster in Europe: non-alcoholic spirits or non-alcoholic beer?
The divergence between volume growth (NA beer leads) and value growth (NA spirits leads) is characteristic of a maturing category with bifurcating market structure. The high-volume, moderate-price segment, NA beer at mainstream retail, continues to grow steadily as broader consumer normalisation advances. The high-value, lower-volume segment, premium NA spirits, dealcoholised premium wines, botanical functional drinks, is growing faster because it is capturing the spending of new entrant consumers who want quality and are willing to pay for it. (Source: WHO, 2023)
Why are NA spirits growing faster than NA beer in Europe?
NOLO drinks are outpacing both spirits and beer in volume growth across Western Europe: NA beer grew 10.4% in 2023, NA spirits 31%, and NA wine 12%, versus 1.2% for full-strength spirits and flat beer volumes (IWSR, 2024). Belgium's NOLO market grew 14% by value in 2024, among the highest rates in the EU.
NA spirits' value growth advantage reflects the category's superior innovation rate. New premium NA spirit brands launch at a rate of approximately 30 to 50 per year in Europe; comparable NA beer innovation happens but tends to be line extensions from established brewers rather than new category creation. The NA spirits space has more room for genuine product differentiation and premium positioning. Brands like Seedlip, Lyre's, Caleño and Monday Gin have established price points of 25 to 40 euros per bottle that the market accepts, generating margin profiles that attract further investment.
Dealcoholised wine's rapid growth from a low base reflects the impact of the EU Delegated Regulation 2021/2119 that formally defined and legitimised the category. Before 2021, dealcoholised wine was a regulatory grey area in many EU markets; the formal framework created retail and restaurant listing opportunities that had previously been difficult. Several Belgian and German wine importers have added dedicated dealcoholised wine ranges since 2022, and the quality tier from French, German and Spanish producers has improved dramatically as category investment has increased.
Investment signals confirming the trend
Diageo's acquisition of Seedlip in 2019 and its subsequent global distribution roll-out to over 60 countries was the defining signal that NA spirits are a legitimate long-term investment category. Pernod Ricard has invested in NA gin alternatives with its Ceder's line. According to Bloomberg Intelligence (2024), venture capital funds invested approximately 1.4 billion US dollars globally in NoLo beverage brands between 2022 and 2024, of which over 60 percent went to the spirits and botanical drinks segment. This capital allocation confirms that the fastest-growing value segment is attracting the most sophisticated investors.
For the European market, the Anuga trade fair in Cologne recorded a 40 percent increase in exhibitor floor space for NA spirits and botanical drinks in 2023 compared to 2021, reflecting both producer supply and retailer and hospitality buyer demand. The structural outlook is clear: NA spirits will continue to outgrow NA beer in value terms for at least the next 5 years, while NA beer remains dominant by volume.
What does this mean for producers and investors in practice?
The value growth dynamics point to clear strategic implications. For producers, the premium end of NA spirits and dealcoholised wine is where margin and brand equity are built. For investors, the category presents characteristics, high growth, high margins, long structural tailwinds, that justify dedicated allocation alongside more established premium beverage categories. For retailers, the lesson is that NoLo is not a shelf-space cost but a margin contribution: the premium price points in NA spirits generate higher category value than equivalent shelf space for standard NA beer. The smartest retailers are already responding by expanding dedicated NoLo sections and incorporating NA wines into their sommelier-curated ranges. The structural growth trajectory points to a European NoLo market that will look meaningfully different in five years, with spirits and dealcoholised wine holding a much larger share of value than today.
In summary: volume leadership belongs to NA beer, but the economic future of the NoLo category is being written in spirits and dealcoholised wine. For any market actor, producer, distributor, retailer or investor, understanding this structural bifurcation is essential to positioning correctly for the next phase of European NoLo growth. The window for early-mover advantage in NA spirits is open, but it will not remain open indefinitely as more mainstream brands enter the space.
| Subcategory | European CAGR 2020-2024 | % of NoLo volume | % of NoLo value |
|---|---|---|---|
| NA beer | +7% | ~65% | ~45% |
| NA spirits and botanical drinks | +22% | ~18% | ~32% |
| Dealcoholised wine | +28% | ~12% | ~18% |
| Kombucha and functional drinks | +15% | ~5% | ~5% |
Source: IWSR Drinks Market Analysis 2024, Bloomberg Intelligence 2024. (Source: IWSR, 2022)
zeroproof.one covers all NoLo subcategories with equal depth — explore our guides for spirits, wine, beer and botanical drinks to understand the quality landscape in each segment.