ALCOHOL-FREE Wine: The Future of the Wine Trade?

There is a situation that is increasingly common around the world: someone walks into a wine shop, looking to buy an alcohol-free wine, and leaves empty-handed because the shop does not stock a single alcohol-free wine. This may not happen multiple times a day, but it does occur regularly—enough for merchants to take notice, especially when considering the global decline in wine consumption.

Recent studies from the International Wine and Spirits Record (IWSR) in 2024 clearly show that the trend toward lower wine consumption is here to stay. Half of the consumers surveyed indicated they are actively reducing their alcohol intake, and 20% have opted for alcohol-free or low-alcohol alternatives. The IWSR’s forecasts for 160 wine markets suggest that this trend will intensify with Generation Y (Millennials) and Generation Z, as nearly half of these cohorts now abstain from alcohol entirely.

Alcohol-Free Wine as a Growing Market Segment

As bleak as this outlook may seem for the wine industry, the IWSR offers some bright spots. At the end of 2023, the London-based market research institute published a global study on non-alcoholic beverages. It forecasts an average growth of nearly 4% for alcohol-free beverages by 2027. While Germany is expected to see a 2% increase, Japan could see growth of 5%. Additionally, the institute found that one in five consumers tried an alcohol-free alternative for the first time in 2023.

These figures are often ignored in the wine industry, where there is concern that offering more alcohol-free wines could alienate loyal customers who prefer "real" wine. However, alcohol-free wine is not intended as an alternative for those who regularly enjoy premium wines. Instead, it is about attracting new customers and appealing to younger generations. Both can coexist peacefully in a portfolio without detracting from each other.

Is alcohol-free wine just grape juice?

If alcohol-free wine is to be a focus in your assortment, it’s beneficial to understand the different production techniques, so you can answer any customer questions. Let’s start with the basics before diving into production. First, the definition: alcohol-free wine is not just grape juice, as many consumers still believe. To be called wine, it must undergo fermentation. Various dealcoholization methods are then used to remove the alcohol. If the alcohol content of a wine is below 0.5% by volume, it can be considered alcohol-free. Today, most alcohol-free wines have an alcohol content below 0.3%.

Another detail: even though the wine undergoes fermentation, it is usually stopped before completion. This means that winemakers have the full wine flavor but with less alcohol in the young wine, as the yeasts have not yet fully converted the sugar. As a result, less dealcoholization is required. Another advantage: in this case, sugar replaces alcohol as a flavor carrier, making the aromatic impression more intense. This is important because dealcoholization also removes some of the aromas, which may need to be recovered later. This brings us to the three production methods for alcohol-free wines.

Overview of the three dealcoholization methods

To produce alcohol-free wines, vacuum evaporation is now the most common method. A vacuum is created in a tank, and the wine is heated to a temperature between 30 and 35 degrees Celsius. In a vacuum, alcohol evaporates at these low temperatures. This method is considered particularly gentle, as it preserves many aromas. A further development of this method is spinning cone technology, which operates at even lower temperatures, preserving even more aromas.

Reverse osmosis is now considered somewhat outdated but is still in use. This technical process separates the alcohol from the wine, which involves considerable effort and is therefore expensive.

Areas for improvement in alcohol-free wines

There are two additional aspects worth mentioning. The production of alcohol-free wines remains very energy-intensive. While alcohol-free wine may be better for the body, it is not necessarily better for the environment. Despite all advancements, dealcoholization is still in its infancy. It’s likely that more sustainable methods will be developed in the future.

Thanks to vacuum evaporation and spinning cone technology, alcohol-free wines now generally have a broader aromatic spectrum than they did a few years ago. However, the texture is still different from wines with alcohol, and the finish is usually shorter. Dealcoholization experts are currently working on improving these aspects to bring better qualities to the bottle, so in the future, comparisons with wines containing alcohol won’t be something to avoid.

Alcohol-free wine: what does the future hold?

In general, there is a lot of movement in the industry regarding alcohol-free wine. For instance, the Rheingau Winegrowers’ Association is currently advocating for the designation of origin, at least the region, to be indicated on the labels of dealcoholized wines in the future. This would require an adjustment to the wine regulations. The association also demands that a winery that dealcoholizes its own wine be allowed to be listed as the producer on the label. Currently, only the term "Distributor" may be used.

Moreover, wines that have been fortified cannot currently be used to produce alcohol-free variants, which makes sense, as even more alcohol would need to be removed. If a winery has an overproduction of fortified wine, it cannot be repurposed. Many winemakers are therefore calling for a change in this regulation for economic reasons. Additionally, alcohol-free wines are still not allowed to carry the "Organic" label, as the dealcoholization process is not yet included in the EU regulation for organic farming. However, there is already a petition to have the process approved in Brussels. As you can see, alcohol-free wine is undergoing significant changes.