Low- and no-alcohol (lo/no) products are no longer a peripheral curiosity in European grocery retail. Once confined to a handful of SKUs in the beer aisle, the category has evolved into a visible and growing fixture across multiple alcohol segments. Retailers are expanding shelf space, refining their assortments, and increasingly treating lo/no as a strategic growth category rather than a seasonal or promotional add-on.

Changing shopper behaviours drive sustained demand

At the heart of this growth is a fundamental shift in how European shoppers approach alcohol. Moderation is now embedded in mainstream consumption habits, rather than being limited to specific life stages or demographics.

Health and wellness concerns are a powerful driver. Shoppers are more conscious of calorie intake, sleep quality and mental wellbeing, leading to greater willingness to reduce alcohol consumption without eliminating social drinking occasions. This is particularly evident among younger adults, where full abstinence is rising and alcohol is under greater scrutiny as part of a balanced lifestyle.

The growth of the ‘sober curious’ movement has also normalised alcohol-free choices in social contexts. What was once perceived as a compromise is increasingly seen as a positive and intentional choice.

Retailers expand assortment and rethink execution

Retailers have responded by significantly expanding their lo/no ranges. Assortments now typically span multiple segments, from mainstream alcohol-free beers to premium spirit alternatives and functional adult soft drinks. This expansion reflects both increased supplier innovation and retailer confidence in the category’s long-term potential.

Carrefour in Poland has elevated no/lo category elevation in selected stores.

Innovation expands beyond traditional boundaries

Supplier activity in the lo/no space has accelerated rapidly, with both established alcohol producers and new entrants competing to capture share. Major brewers have led the way in developing high-quality 0.0 beers that closely replicate the taste of their alcoholic equivalents, helping to overcome one of the category’s historic barriers to adoption.

Major manufacturers, such as Heineken, have created zero versions of its core product range. In-store activations, such as this example from Edeka in Germany, are used to raise awareness.

Innovation is now moving further into wine and spirits, although these segments present greater technical challenges. Because of these challenges we are seeing entirely new product formats are emerging to sidestep direct comparison with traditional alcohol. Botanical blends, functional beverages and ‘adult soft drinks’ are blurring category boundaries and creating new consumption occasions.

German brand Fritz-Kola has positioned its craft cola range as a more grown-up soft drink.

Private label is emerging as an important lever, enabling retailers to offer accessible price points and improve margins. At the same time, premium brands are playing a key role in elevating perceptions of the category, particularly in spirits alternatives where cues such as packaging, branding and flavour complexity are critical. This balance between accessibility and premiumisation is shaping how lo/no is positioned within the broader drinks offer.

Discounters are active in the category, with retailers such as Lidl introducing a 0.0% version of its Perlenbacher lager at a highly competitive price point to drive trial and accessibility.

What do retailers and suppliers need to do to capitalise

The continued growth of lo/no alcohol presents a clear opportunity, but realising its full potential requires a more strategic approach. Retailers need to move beyond viewing the category as an adjunct to traditional alcohol and instead develop a coherent role for lo/no within their overall drinks strategy. This includes optimising assortment to reflect different consumption missions, ensuring strong visibility in-store, and using data to refine range and space allocation.

Meny in Denmark has a comprehensive range of no/lo products in a prominent location in its BWS category.

Suppliers must continue to focus on product quality, particularly in segments where taste remains a barrier to repeat purchase. Investment in innovation will be critical, not only in replicating traditional alcohol experiences but also in creating differentiated propositions that justify premium positioning. Clear communication of benefits, whether related to flavour, functionality or lifestyle, will be essential in driving trial and loyalty.

In Romania, Ursus has created a range of non-alcoholic beverages with exotic flavours to capture the growing demand for lo/no.

Collaboration between retailers and suppliers will be increasingly important. Joint efforts in category education, in-store execution and shopper marketing can help accelerate adoption and build shopper confidence. As lo/no continues to mainstream, those who can align around a shared vision of the category’s role will be best placed to capture its long-term growth.

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