Alongside white wine, low alcoholic and no alcohol wine is quietly emerging as one of the few segments showing growth in China’s otherwise challenging beverage alcohol market.

Globally, the United States currently leads growth in the LoNo wine category, but the Asia-Pacific region is widely viewed as another major opportunity. According to research by Industry Research, China accounts for about 31% of non-alcoholic wine consumption in Asia-Pacific, making it the region’s largest single market and highlighting the country’s growing influence in this niche category.

As more industry players spot the opportunity, not only importers but also Chinese producers are beginning to move into the space.

Public information shows that major domestic wine companies Changyu and Great Wall Wine are developing alcohol-free products, while listed producers Dynasty Winery and Citic Niya have already launched several similar offerings.

China’s liquor giant Kweichow Moutai known for its fiery Baijiu has also entered the lower-alcohol segment. Recently, the company introduced a 6% ABV blueberry sparkling wine on its e-commerce platform iMoutai. The product sold more than 13,000 bottles on its first day, generating 1.23 million yuan (US$178,835) in sales and setting a platform record for the launch of a low-alcohol fruit wine.

Beyond industry giants, a new wave of start-ups has also begun focusing on low- and no-alcohol beverages. Several small entrepreneurial brands launched distinctive domestic products in 2025, aiming to capture emerging demand.

Entrepreneurs betting on China’s no-alcohol trend

One such brand is No & Low, whose name itself reflects its focus on low- and alcohol-free drinks.

The start-up began operations in 2025 and currently offers dealcoholized red wine, alcohol-free grape juice and alcohol-free sake made from ingredients sourced from Shaanxi, Shanxi and Yunnan.

“We operate several brands, and No & Low is dedicated specifically to alcohol-free products,” said founder and winemaker Jack Zhang (Zhang Zhuonan). “The brand only started operating last year, with our first promotion in September, so it’s still extremely new.”

Zhang is not a newcomer to the wine trade. Zhang has spent more than a decade in the wine industry. After studying winemaking at the University of Adelaide, he worked across nearly every part of the supply chain.

“I’ve grown grapes, made wine, handled bottling, and worked in sales and trade,” he said. “If I count from when I entered the industry in 2012, it’s been about 13 years.”

Those years exposed him to both the boom and the slowdown of China’s wine market — experience that shaped his belief that alcohol-free beverages represent a new opportunity.

“In the past, official and business drinking occasions were very important, but many of those scenarios are shrinking or disappearing,” Zhang said. “More consumption is shifting toward smaller gatherings with a more relaxed atmosphere and lower spending.”

“In the past, official and business drinking occasions were very important, but many of those scenarios are shrinking or disappearing,” Zhang said. “More consumption is shifting toward smaller gatherings with a more relaxed atmosphere and lower spending.”

“In my view this is not accidental — it’s a structural shift. As consumption scenarios change, products need to adapt accordingly.”

o reach its target consumers, No & Low has taken an unconventional approach for a wine brand. Last year the company partnered with running clubs and gyms, promoting its products directly to health-conscious consumers.

“The feedback has been very positive,” Zhang said. “About 70% of the positive responses came from female consumers, which also helped demonstrate to distributors that there is genuine market demand.”

Boutique wineries testing new formats

Entrepreneurs are not alone in exploring the category. In Ningxia, China’s most prominent premium wine region, Lingering Clouds Winery has also begun experimenting with alternative wine styles.

The winery has launched several unconventional products in recent years, including tea-infused wine and an alcohol-free grape juice.

Founder and winemaker Liu Yuanwai said the winery began exploring alcohol-free products after noticing new consumption needs emerging in the market.

“Some occasions genuinely require alcohol-free drinks,” Liu said. “For example, gatherings among young people or situations where someone has to drive.”

The winery released its first alcohol-free product in 2025, producing small batches that are sold through restaurants, e-commerce platforms and bars.

Local flavor as a competitive advantage

Lingering Cloud’s Alcohol-Free Grape and Green Plum Drink blends three grape varieties from the Helan Mountain region with four types of green plums from Sichuan

China’s low- and no-alcohol segment initially gained traction in business banquet settings, where drivers or guests who cannot drink often choose alcohol-free beverages as symbolic substitutes during toasts.

Products packaged similarly to wine bottles — including dealcoholized wine and alcohol-free grape juice — have therefore found an early foothold in the market.

For now, however, imported products still dominate. Searches for “alcohol-free wine” on Chinese e-commerce platforms reveal that most offerings come from overseas brands.

Customs data show that China imported 288.43 million liters of “other non-alcoholic beverages” in 2025, down 4.07% from the previous year, while import value rose 13.37% to US$1.02 billion. The category includes some alcohol-free wine products.

Because overseas production technology is more mature, imported alcohol-free wines often have a price advantage. On the major e-commerce platform Tmall, many products retail for 50–60 yuan per bottle.

Domestic alternatives typically sell at higher prices. Lingering Cloud’s alcohol-free grape juice starts at around 86 yuan per bottle, while No & Low’s four debut products retail at 129 yuan, with promotional discounts bringing the price down to 99 yuan during holidays.

To compete, local producers are leaning into something imported brands cannot easily replicate: Chinese flavors.

Lingering Cloud’s alcohol-free product — called Lingering Cloud Alcohol-Free Grape and Green Plum Drink — blends three grape varieties from the Helan Mountain region with four types of green plums from Sichuan.

“The additional acidity from the plums creates a unique flavor profile,” Liu said.

No & Low, meanwhile, uses a hybrid grape Niagara grape, a variety well suited to Chinese vineyards, for its alcohol-free grape juice, and incorporates Anyue lemons into its alcohol-free sake.

“If we simply copied something like alcohol-free Australian Shiraz because it sells well abroad, that would be like fighting a stone with an egg,” Zhang said. “Instead we focus on differentiation and reasonable pricing.”

“If we simply copied something like alcohol-free Australian Shiraz because it sells well abroad, that would be like fighting a stone with an egg,” Zhang said. “Instead we focus on differentiation and reasonable pricing.”

Technology catching up

Li Wei, chairman of Auswan Creek, believes China’s dealcoholization technology has already reached global standards.

“The key to alcohol-free wine lies in the dealcoholization process,” he said. “China now has several top laboratories and doctoral research centers working on this technology. In some cases it may even better match Chinese consumer taste preferences.”

Auswan Creek, headquartered in Australia, produces its alcohol-free brand Blue Lobster by transporting base wine from Australia to China for dealcoholization before bottling locally.

Originally launched as a white wine designed to pair with hotpot, barbecue and crayfish, the alcohol-free version debuted in 2024 and has gained recognition in China’s southeast coastal markets.

According to company sources, Blue Lobster sold about 500,000 bottles in 2025, posting annual growth of around 15%.

Li said the model — “Australian base wine + dealcoholization in China + local bottling” — allows the company to respond quickly to domestic demand.

“We can adjust batches quickly based on market feedback and bottle close to the market,” he said. “That improves turnover efficiency and ensures fresher products for consumers.”

Auswan Creek group’s non alcoholic Blue Lobster wine

A market entering its growth phase

Li believes the category is now moving into a new stage.

“If 2025 was the first year of alcohol-free wine in China, then from 2026 the market is entering a growth phase,” he said.

One reason is the rapid expansion of consumption occasions.

Where alcohol-free beverages were once mostly used in formal business banquets, new “light social” scenarios are emerging — including camping, picnics and outdoor gatherings, where younger consumers want a drink that enhances the atmosphere without alcohol.

Family gatherings are another driver.

“Many family dinners now include several generations — grandparents, children and younger adults who may need to drive,” Li said. “Alcohol-free wine allows everyone to raise a glass together.”

For Jack Zhang of No & Low, the long-term opportunity for domestic brands lies in understanding Chinese tastes.

“Many international alcohol-free wines try to replicate traditional wine flavors,” he said. “But many Chinese consumers of alcohol-free drinks are not regular wine drinkers. What they care about most is whether it tastes good.”

“Many international alcohol-free wines try to replicate traditional wine flavors,” he said. “But many Chinese consumers of alcohol-free drinks are not regular wine drinkers. What they care about most is whether it tastes good.”

If producers focus on drinkability and maintain competitive pricing, he believes domestic alcohol-free wines could carve out significant market space.

“China has excellent terroir and strong raw materials,” Zhang said. “Traditional wine is already extremely competitive, but combining those ingredients with new product formats may create entirely new opportunities.”