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The high price tag behind alcohol-free wine explained

Non-alcoholic wine commands premium prices because the process to remove alcohol is costly and the market is booming among younger drinkers.

The market for beverages without alcohol has surged, with U.S. sales of non-alcoholic beer, wine and spirits climbing over 20 % each year, fueled by younger consumers seeking the social experience without the booze. Analysts forecast the sector to add more than $4 billion by 2028. To meet demand, small firms and scientists are using advanced chemistry to produce premium dealcoholized wines, and concepts like Burden of Proof in Los Angeles are building storefronts that focus solely on zero-proof selections.

Despite the shift away from alcohol, many shoppers are surprised that alcohol-free wines often cost as much as their alcoholic counterparts. The primary driver is the expensive equipment and processes required to remove alcohol, which, together with the hype surrounding the movement, sustains high price points.

Why it matters

Understanding the cost drivers of non-alcoholic wine helps consumers and investors gauge the sustainability of a fast-growing market.

In this story

non-alcoholic winedealcoholization technologyzero-proof marketyoung consumerspremium pricing
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