Many people want to know if the current strong growth in Alcohol Free (AF) wines is just a trend, or if it is here to stay. Given that alcohol-free wines have been available commercially in the U.S. market for 40 years (Arial was introduced by J. Lohr Vineyards & Wines in 1985 and Fre was released in 1992 by Trinchero Family Estates), there will always be a place in the market for these types of wines.
However, with the current consumer focus on health and wellness, it is expected that many more AF wine brands will be released in the next several years. But given that social trends do shift and change, in three to five years, the popularity of AF wines may wane—remember Prohibition in the U.S….
Therefore, wine companies entering this space should be careful not to ramp up to large volumes for the long term, but the introduction of one AF wine to an existing brand line may make sense for the short term. Also, since these wines generally do not age well—most are designed to be drunk upon release or within 2 to 3 years—producing enough to meet market demand while keeping a close eye on shifting consumer trends may make good business sense.
One silver lining about the popularity of alcohol-free wines is that they require high-quality grapes to make a high-quality wine. This can help preserve thousands of acres of vineyards that might have had to be razed due to decreasing sales of traditional wine. Many of these vineyards have been cared for by generations of small family winemakers around the world, who rely on them for their livelihood. Having an additional use for the grapes is a positive outcome.
Note: Portions of this article were originally published on Forbes.com. Republished here with permission.