Young consumers in China are driving a boom in low- and no-alcohol drinks, reshaping social habits and the global drinks market.
Recently, the topic “Does ‘fake alcohol’ still count as alcohol?” trended on Chinese social media. Here, “fake alcohol” refers to alcohol-free drinks.
According to China’s 2021 national standard for alcohol-free beer, such beer must contain no more than 0.5% alcohol at 20°C. Likewise, under China’s wine production guidelines, wine with 1% alcohol or less counts as alcohol-free. Even so, young people now bring these drinks to the table more and more often.
Meanwhile, data shows a clear shift. Among consumers of low-alcohol drinks (below 10% ABV), those aged 18 to 35 account for 67.3%. This marks an increase of 21.5 percentage points since 2020. In the past, many drank to get drunk. Now, by contrast, this group prefers lighter drinks with 3% to 10% alcohol. As a result, they seek a gentle buzz across more casual and varied settings.
At the same time, social situations have become more relaxed and equal. Because of this, alcohol-free options help ease the anxiety of “not fitting in” when refusing a drink. As one young consumer, Fang Jia, explains: “I only care about the taste. If it feels good in the moment, that’s enough. Ideally, I don’t want my head to feel off afterwards.”
Moreover, her experience reflects a wider pattern. According to New Weekly, Fang Jia, born after 1995, once had a negative view of alcohol. When she was in primary school, her father often drank at work events. One night, he suffered acute myocardial ischaemia and had to be rushed to the hospital. Since then, she has seen alcohol as risky. Now, as an office worker with low tolerance, she prefers drinks like low-alcohol pineapple beer or milk beer. These suit her better than drinks that could leave her hungover.
In addition, health concerns play a key role. Today, health authorities in many countries highlight the risks linked to alcohol. Gradually, this shifts public perception. Alcohol is no longer just a social staple. Instead, many now view it as a harmful substance and a top-level carcinogen. Therefore, consumers look for alternatives. They want drinks that mimic the experience of alcohol while also fitting a healthier lifestyle.
However, this trend creates tension in some settings. For instance, Ning Yu, who runs a craft beer pub in Guangzhou, recalls a table where four or five customers all chose alcohol-free drinks. He admits this can feel awkward for pub owners. In fact, he would sometimes rather that such customers go to a bubble tea shop. Even so, alcohol-free drinks clearly offer a lighter, healthier choice for young people.
Globally, the trend is just as clear. Data from the International Wine and Spirits Research (IWSR) shows that the low- and no-alcohol beer market exceeded $13 billion (about 9.85 billion pounds) in 2023. By 2027, alcohol-free beer could account for nearly 4% of the total alcohol market.
Furthermore, in major beer markets, many young adults of legal drinking age now avoid alcohol altogether. For example, Japan shows the highest rate. Among 18- to 26-year-olds surveyed, 63% said they had not drunk alcohol in the past six months. According to IWSR’s chief operating officer, this trend is spreading across North America, Europe, and Asia. Analysts, therefore, see this as a generational shift in the drinks industry.
Finally, industry experts highlight structural change. As reported by the Beijing News, Wang Zuming from the China Alcoholic Drinks Distribution Association notes a global shift in the market. In particular, low-alcohol products now drive growth. Previously, producers shaped the market. Now, consumers lead it.
At the same time, new retail channels, such as instant delivery, grow faster than traditional ones. In addition, more women now consume alcohol, while younger buyers show less brand loyalty. As a result, the market demands more distinctive and personalised products. Against this backdrop, low- and no-alcohol wines have become a key focus for producers, especially as they try to expand everyday drinking occasions.
Written by Yi Shen.
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