Italy’s No-Alcohol Wine Production Is Set to Surge

Verona, Italy — The market for dealcoholized and low-alcohol wines is set for a sharp expansion in 2026, with Italian production expected to rise 90%, according to an analysis presented at Vinitaly by the Uiv-Vinitaly Observatory.

The study, released at the wine fair at the Verona exhibition center, points to strong demand abroad and a still-early domestic market in Italy. In 2025, sales of no- and low-alcohol wines in Germany, Britain and the United States reached more than 1.2 billion euros in grocery retail, equal to 160 million bottles, the observatory said. That remains a small share of the global wine business, but it marks a fast-growing category, especially for fully alcohol-free wines, which are outperforming low-alcohol products.

Italy is now preparing to enter the segment more fully after years of regulatory delays that pushed many producers to make these wines abroad. Italian dealcoholized wines currently hold about 2.5% of the market, mainly in Germany and Britain. But the outlook is changing quickly. The survey, which covered nearly all Italian companies active in the category, found that production is expected to jump next year, with exports accounting for 91% of sales and retail channels making up 77% of distribution.

About half of the companies surveyed said they plan to begin production in Italy, with Veneto emerging as a key region because of its central role in the country’s wine industry. The product mix is also shifting. Alcohol-free wines now account for 54% of listings, while “wine-based beverages” have grown from 3% in 2025 to 27% today.

The main markets remain North America, especially the United States and Canada, and the DACH countries — Germany, Austria and Switzerland. New destinations are also emerging in Mexico, Poland and China, along with parts of the Middle East and Africa.

The observatory’s analysis, based on NielsenIQ and IWSR data, found that zero-alcohol sparkling wines are capturing much of the category’s momentum abroad. In Britain, sales rose 24%, with Italian products up 17%. In the United States, sales increased 15%, while Italian labels posted a 200% gain.

Health remains the leading reason consumers choose no- and low-alcohol wines, but perceptions of better quality and greater awareness of the category now account for 35% of purchasing decisions. Taste remains a barrier for 25% of potential buyers.

“The issue of taste is still holding back consumption for 25% of potential customers,” Paolo Castelletti, secretary general of Unione Italiana Vini, said at Vinitaly. “That share is gradually falling as product quality improves. Italy has a decisive role to play here.”

Castelletti said the category still has room to grow among both abstainers and regular wine drinkers who sometimes prefer not to consume alcohol.

The picture is different in Italy itself, where consumption remains limited. The observatory found that 94% of non-drinkers said they had not bought a no-alcohol product in the past six months. That figure rises to 98% among younger consumers and falls to 89% among older ones. Among those who do buy such products, driving was cited as the main reason by 50% of respondents, including 56% of Gen Z consumers.

Restaurants have also been slow to adopt the category. The survey found that 71% of restaurants are not interested in adding dealcoholized wines to their lists, while only 3% said they had already done so successfully.

“For Vinitaly it is important to seize every business opportunity,” Federico Bricolo, president of Veronafiere, said. “That is why we developed NoLo Vinitaly Experience together with Unione Italiana Vini, an area dedicated to no- and low-alcohol wines with specialized exhibitors and a full schedule of tastings and master classes.”