Why nonalcoholic wine is so expensive

Alcohol Decline and the Reshaping of the Beverage Industry

Americans are drinking less alcohol, and the shift is reshaping the entire beverage industry. This decline has contributed to closures of wineries in California, while traditional alcohol companies scramble to create nonalcoholic (NA) alternatives.

Key drivers of reduced consumption include health concerns—such as anxiety and heart-related issues—and especially uptake changes among younger consumers. As a result, NA beverages are booming, including nonalcoholic wines, which can cost as much as or even more than alcoholic wine.

Why NA Wine Can Be So Expensive

A major reason NA wine costs more is that dealcoholizing wine is technically difficult and costly—particularly when producers want to preserve flavor complexity and aroma.

The video features Dean, co-owner of an NA bottle shop in Los Angeles, to explain both the market and the value proposition. He argues that NA wine isn’t “missing” something important so much as avoiding alcohol downsides (like hangover effects) while still maintaining artistry in recreating taste, texture, and scent. The idea is sometimes described as keeping the “pool party” flavors without the later “cluster headache.”

Dean also describes how consumer demand and retail experiences have evolved:

• When nonalcoholic options were scattered across stores or only available online, he saw an opportunity for an inviting, independent wine-shop experience centered on NA offerings.

Explosive Growth, and the Market Paradox

The growth appears rapid:

• U.S. sales of nonalcoholic beer, wine, and spirits have grown by over 20% every year since 2022.
• Researchers project the no-alcohol market could reach more than $4 billion by 2028.

Yet shoppers often question the paradox: why does NA wine sometimes cost the same as (or more than) alcoholic wine?

Experts in the video address this by reframing the process: removing alcohol isn’t simply “taking something out.” Instead, production must preserve many volatile compounds that contribute to wine’s character.

Technologies Used to Remove Alcohol

The video includes Dr. Manea, a food scientist and leading researcher in dealcoholized wine (working with Swedish NA wine company Oddbird). She explains major technologies used to remove alcohol:

• Vacuum distillation
  • Lowers the boiling point so ethanol evaporates at lower temperatures.
  • Helps preserve aromas, though it can require more energy.
• Reverse osmosis
  • Uses fine membranes to separate ethanol from hundreds of wine compounds by size.
  • Recombines remaining components to recreate the wine.
• Spinning cone column
  • A modern hybrid method using connected spinning cones.
  • Captures volatile aromas, removes ethanol, and then returns aromas to the wine.

Dr. Manea emphasizes there is no single “best” method. Outcomes depend heavily on:

• the quality and properties of the original wine
• the desired result

The takeaway: dealcoholization can even make the final product more complex, but it requires advanced processes to avoid destroying flavor.

Global Impact and What Comes Next

The video frames the trend as a major transformation for wine globally, citing that:

• global wine consumption fell to about 214 million hectoliters in 2024, the lowest in over 60 years.

The commentary argues the future likely won’t be purely “no-alcohol.” Instead, innovation—including NA wine—may serve as a “lab” to reinvent the broader wine industry.

Dean’s shop is portrayed as a community hub that also reflects the cultural shift, hosting:

• tastings
• book clubs
• poetry workshops
• social events

This shows NA wine consumption is changing both cultural life and retail experiences, not just alcohol levels.

Presenters / Contributors

• Dean — co-owner of an NA bottle shop in Los Angeles
• Dr. Manea — food scientist; researcher in dealcoholized wine; works with Oddbird
• Vox — narration/interviewer (the video uses a Vox-to-entrepreneur framing with Dean)
• Verizon Business — sponsor (mentioned for Small Business Days)