Transforming the Italian Wine Sector: Firms’ Perceptions of Dealcoholised Wine Innovation, Regulation, and Market Positioning

The rapid expansion of the no- and low-alcohol (NoLo) segment is reshaping dynamics in mature wine markets. Within this context, dealcoholised wines might represent an emerging strategic opportunity for traditional wine-producing countries. This study examines how Italian wineries respond to the development of the dealcoholised segment, focusing on the interaction between technological constraints, regulatory design, and market positioning. The analysis is based on semi-structured interviews with three geographically diverse wineries operating in Northern, Central, and Southern Italy. Using a qualitative multiple case-study approach, the study identifies convergent patterns in technological adoption, strategic diversification, and perceived regulatory barriers. This study pursues two analytical levels: general objectives integrate regulatory, technological, and sustainability analyses to assess NoLo development amid health-driven demand; specific case-study objectives are: a) firm motivations, perceptions, and expectations; b) regional strategy/technology variations (North-Centre-South); c) producer-identified barriers/prospects. Key questions address Italy-EU regulatory gaps, preferred techniques/satisfaction, communication to overcome cultural resistance, regional differences, and sector evolution drivers. The findings indicate that membrane-based dealcoholisation technologies have reached operational feasibility, yet high capital intensity limits widespread internal adoption. Firms frame entry into the segment as a proactive diversification strategy, targeting moderation-oriented consumers, particularly younger cohorts. Regulatory constraints, especially the prohibition of dealcoholisation for Protected Designation of Origin (PDO)/Protected Geographical Indication (PGI) wines, emerge as a critical factor shaping competitive positioning. Sustainability considerations introduce additional trade-offs, given the higher energy and water intensity of current processes. The study contributes to the economic analysis of innovation in mature wine sectors and highlights the role of institutional design in influencing competitive dynamics within emerging product categories.