Strategy and development Australia

The No/Low alcohol drinks market in Australia

Emmanuel Bisi
Author

October 13, 2025
Published on

The Australian market for low-alcohol and non-alcoholic beverages is booming. Boosted by new consumer trends, it is becoming a strategic segment for international brands - particularly French producers of wines, spirits and innovative beverages.

1. A fast-growing market: key figures

According to IWSR (International Wine and Spirits Record), the global No/Low alcohol market is set to grow by+7% in volume terms by 2023, reaching nearly US$11 billion. Australia is one of the most dynamic markets in the Asia-Pacific region.

Specific figures for Australia:

Average annual growth of16% in the No/Low alcohol segment between 2020 and 2023 (IWSR 2024)
Australian No/Low alcohol market to reach AUD 1.8 billion by 2025 ( source: IWSR)
58% of Australians aged 18-34 say they have reduced their alcohol consumption in the last two years (YouGov Australia, 2023)
29% of Australian consumers regularly purchase alternatives to alcohol (Nielsen, 2023)

Fastest-growing categories :

Alcohol-free beers: +20%/year
Alternative spirits (ethanol-free): +33%/year
De-alcoholized wines: +15%/year

2. A profound change in consumer behavior

The success of the No/Low alcohol market in Australia is based on a series of social, cultural and economic factors:

Putting health and well-being first: Australians favour more conscious drinking, aligned with an active, balanced lifestyle.
The "Sober Curious" movement is gaining ground, with a growing rejection of social pressure around alcohol consumption.
Emergence of new drinking moments: non-alcoholic drinks consumed as aperitifs, at the office, in spas or at the gym.
Popularity of campaigns such as Dry July, Feb Fast and Sober October, widely followed by local media and influencers.
Importance of transparency and natural ingredients, especially among millennials and Gen Z.

3. An ecosystem of players in full structuring mode

The Australian market is still young, but it is rapidly structuring itself around innovative local brands and international groups.

Some major players:

Heaps Normal: pioneer of non-alcoholic craft beer, founded in Sydney
Lyre's: world leader in alcohol-free spirits, of Australian origin, present in 60 countries
Naked Life: alcohol-free cocktails in cans
NON: premium brand of de-alcoholized wines without traditional fermentation

The most dynamic distribution channels are :

Organic and natural retailers ( Harris Farm, About Life, Wholefoods...)
Supermarkets ( Dan Murphy's, BWS, Coles, Woolworths)
Specialized e-commerce ( Sans Drinks, Craft Zero, who are online pure players , very active on social networks)
Premium catering and alcohol-free cocktail bars, which are creating booming "zero proof" cocktail menus in Sydney and Melbourne.

4. What opportunities for French companies?

France, world-renowned for the quality of its wines and spirits, can take advantage of this dynamic to position itself in the Australian no/low alcohol market.

What Australian consumers are looking for :

Premium positioning, with storytelling based on terroir or artisanal know-how
Products with a well-crafted, well-balanced taste(not too sweet, with a dry or aromatic finish)
A strong online presence (Instagram, influencers, clear branding)
A multi-format offering ( cans, small bottles, tasting boxes)

5. Challenges to anticipate before setting up shop

Before setting up shop, there are several aspects to consider:

Regulatory compliance: beverages containing less than 1.15% alcohol are regulated by Food Standards Australia New Zealand (FSANZ), but certain health claims may require classification by the TGA.
Mandatory labelling: inclusion of specific information (exact alcohol content, ingredients, allergens, etc.).
Pricing policy: products must be perceived as a valid alternative, not a "discount" version of alcoholic beverages.
Logistical adaptation: sea or air transport constraints, multi-state inventory management (particularly between NSW, VIC and QLD).

How can Expandys help you penetrate the No/Low alcohol market in Australia?

Expandys has been supporting French companies in their international development for almost 20 years.
In Australia, our local team based in Sydney will help you to :

Assess the feasibility of your project (market analysis, regulatory audit, product benchmarking)
Identify the right distributors, importers and local partners
Recruit local staff via our "portage salarial" solutions
Manage all the administrative, tax, HR and commercial procedures required for a smooth entry into the market.

🔗 Find out more about opportunities in Australia at our detailed report on growth markets for French companies.