NEWARK, Del, Jan. 10, 2025 (GLOBE NEWSWIRE) -- Global sales of non-alcoholic beer reached USD 20,524.5 million in 2022, with a year-on-year growth of 2.8% projected for 2023. Sales are expected to reach USD 20,536.0 million in 2024. Over the forecast period from 2024 to 2034, the global market for non-alcoholic beer is anticipated to grow at an impressive compound annual growth rate (CAGR) of 7.9%, reaching a value of USD 43,926.9 million by the end of 2034.
In recent years, consumers have become increasingly health-conscious, prioritizing food and beverages that offer health benefits in addition to the unique flavors of traditional products. Many individuals worldwide face health challenges related to liver, kidney, and heart issues due to habitual alcohol consumption. Despite these health concerns, consumers often find it difficult to eliminate beer or other alcoholic beverages from their routines.
Recognizing this global trend, leading manufacturers such as Heineken, Big Drop Brewing Co., Carlsberg, and others have developed innovative alcohol-free beers that replicate the taste of traditional beer without the harmful effects of alcohol. These beverages are crafted using processes such as limited fermentation, dealcoholization, and blending, ensuring they contain minimal alcohol (less than 0.5% ABV) or are entirely alcohol-free.
According to AB InBev, a global leader in brewing, consumers increasingly choose non-alcoholic beers based on specific occasions. Decisions are influenced by factors such as the time of day, the social environment, and the setting. For example, consumers may opt for non-alcoholic options during activities like running errands, working out, or spending quality time with friends, depending on the context and mood of the occasion.
Factors Boosting the Sales of Non-alcoholic Beer
Various research activities have shown non-alcoholic beer to improve overall cardiovascular health. This is most likely due to the polyphenols found in these products, such as polyphenol xanthohumol, a hop-derived molecule. Drinking alcohol-free beer can help lower blood pressure, inflammation, and homocysteine levels.
Hops are utilized in non-alcoholic beers for their distinct flavor and as a preservative. Chemicals such as xanthohumol and myrcenol found in hops have a sedative impact and can help in improving the sleep cycle. Hops boost the action of the neurotransmitter gamma-aminobutyric acid (GABA), which is a fundamental mechanism behind sleep. When GABA levels rise, neuronal activity decreases, resulting in a calming effect in the brain.
Experimental investigations have also shown that consuming alcohol-free beer reduces anxiety levels in stressed individuals. Backed by these factors, sales of non-alcoholic beers are anticipated to gain traction over the forecast period.
Key Pitfalls Faced by the Non-alcoholic Beer Market:
• Dealcoholized drinks lose qualities like aroma and taste with the reduction in alcoholic strength in beverages. Beverages bereft of aroma and flavor may influence the market negatively to a certain extent.
• Non-alcoholic beers are considered specialty craft, that are linked with high retail as well as production costs. The cost factor of these beverages may impede product sales.
Key Opportunities in the Market:
• The emergence of ‘wellness revolution’ is inciting manufacturers to scale up their advertising tactics for non-alcoholic beers. If tapped appropriately, this opportunity is projected to swell the business revenue of manufacturers.
• Stringent laws on alcoholic beverages in certain countries are projected to present lucrative growth opportunities for alcohol-free products.
“The non-alcoholic beer industry is experiencing significant growth as consumers increasingly prioritize health and wellness. Driven by the rising popularity of the "zero-proof movement," innovative flavors, and the expansion of craft and artisanal options, non-alcoholic beers are gaining widespread acceptance across various regions. With major players investing heavily in product development and growing demand from health-conscious consumers, the industry is poised for continued growth, offering a refreshing and responsible alternative to traditional alcoholic beverages” - says Nandini Roy Choudhury, Client Partner at Future Market Insights.
What are the Challenges Faced by the Non-Alcoholic Beer Industry?
The non-alcoholic beer industry faces several challenges despite its growing popularity. One significant hurdle is the lingering perception among some consumers that non-alcoholic beer lacks the authentic taste and experience of traditional beer, which can affect its acceptance among beer enthusiasts. Additionally, the production process for non-alcoholic beer, including techniques like dealcoholization and limited fermentation, can be more complex and costly, impacting profit margins for manufacturers. Regulatory restrictions and varying definitions of "non-alcoholic" beer across different regions further complicate market operations and labeling. Moreover, intense competition from other non-alcoholic beverages, such as mocktails, flavored water, and health drinks, poses a threat to market share. Lastly, educating consumers about the benefits and quality of non-alcoholic beer remains a challenge, particularly in regions where awareness and acceptance are still developing.
Which is the Most Preferred Non-alcoholic Beer Material?
Demand for Malted-Grain Non-alcoholic Beers to Continue Rising
In terms of material, sales in the malted grains segment are forecast to gain momentum over the forecast period. In 2021, the malted grains segment accounted for more than 63.8% of the global non-alcoholic beer market share. The presence of high enzyme concentrations in malted grains enables effective starch conversion and enhanced fermentation.
Increasing Sales of Non-alcoholic Beer at Supermarkets to Bolster Growth
As per FMI, sales of non-alcoholic beers through supermarkets are forecast to have a significant market share over the forecast period. The wide availability of various brands and flavors of non-alcoholic beverages at supermarkets and hypermarkets is expected to continue driving sales in this segment in the forthcoming years.
Key Sales Trends in the Non-Alcoholic Beer Market:
- Rising Health Awareness: Increasing consumer focus on health and wellness is driving demand for non-alcoholic beer as a healthier alternative to traditional alcoholic beverages.
- Premiumization and Flavor Innovations: Manufacturers are introducing premium non-alcoholic beers with diverse flavors, closely mimicking the taste of traditional beers, which appeals to a broader audience.
- Expanding Occasional Consumption: Consumers are choosing non-alcoholic beer for various occasions, such as daytime socializing, fitness activities, or workplace gatherings, broadening its consumption patterns.
- Growth in Retail and E-commerce Channels: The availability of non-alcoholic beers in supermarkets, specialty stores, and online platforms has boosted accessibility and convenience, contributing to sales growth.
- Increased Adoption in Emerging Markets: Rising disposable incomes and growing awareness of alcohol-related health issues in emerging markets are expanding the global footprint of non-alcoholic beer.
- Marketing Focus on Younger Audiences: Brands are targeting millennials and Gen Z with campaigns emphasizing lifestyle, moderation, and health benefits, further driving demand.
- Support from Regulatory Trends: Policies promoting reduced alcohol consumption and responsible drinking are encouraging the adoption of non-alcoholic alternatives.
How do consumer preferences for health-conscious beverages influence the non-alcoholic beer industry?
Consumer preferences for health-conscious beverages have significantly influenced the non-alcoholic beer industry. As more individuals prioritize their well-being and seek alternatives to sugary drinks and alcoholic beverages, non-alcoholic beer has gained traction as a healthier option. The growing awareness of the negative health impacts of excessive alcohol consumption, such as liver and heart issues, has led many consumers to choose non-alcoholic beers that provide the same flavor experience without the associated health risks. Additionally, many consumers are now looking for beverages that offer functional benefits, such as lower calories, fewer carbohydrates, and natural ingredients. This shift in consumer attitudes has prompted manufacturers to innovate, creating non-alcoholic beers with diverse flavors, high-quality ingredients, and enhanced health benefits. As a result, the demand for non-alcoholic beer continues to rise, as it aligns with the growing trend of mindful consumption and healthier lifestyles.
Key Industry Highlights
Growth of Artisanal and Craft Non-Alcoholic Beers in Urban Areas
The rise of artisanal and craft non-alcoholic beers is boosting sales globally, particularly in urban areas and metro cities. Consumers are drawn to these craft options due to their superior quality and unique flavors, which replicate the taste of traditional alcoholic beer without the alcohol content. Traditional beers often face consumer rejection due to their bitterness, but craft non-alcoholic beers address this by carefully controlling the taste and sensory parameters during fermentation. Craft breweries and microbreweries are well-known for their dedication to quality ingredients and innovative brewing techniques. They apply the same principles to non-alcoholic beer production, ensuring these drinks mirror the taste, aroma, and mouthfeel of traditional craft beer. As more microbreweries experiment with various ingredients and non-alcoholic beer styles like ale, stout, and lager, they cater to the growing demand for unique, alcohol-free alternatives.
Increasing Popularity of Unique Flavors Driving Sales
Historically, non-alcoholic beer options were limited, mainly mimicking the taste of standard lagers or pale ales. However, consumer preferences are shifting, with more demand for diverse and exotic flavors. The trend of flavor experimentation is driving sales, as consumers eagerly try new, non-alcoholic beer options. Companies such as Daffodils Beverages are now offering a range of flavors like Malt, Mint, Ginger, Cranberry, Peach, and Strawberry, which appeal to consumers' desire for sweet and refreshing drinks. As exposure to different cuisines and ingredients grows through travel and media, consumers' palates have become more adventurous, and they are increasingly open to exploring new and unique flavors from around the world. This trend is expected to continue, as more breweries see the potential of flavor innovation to differentiate their products in an increasingly competitive market.
The Impact of the Zero-Proof Movement on Sales
The "Zero-Proof Movement" is reshaping non-alcoholic beer consumption by promoting the reduction or elimination of alcohol without compromising on the sensory experience of traditional alcoholic beverages. As this movement gains popularity, more consumers are turning to non-alcoholic beers for social gatherings, celebrations, and casual outings. The growing awareness of the negative health impacts of alcohol—such as liver damage, impaired cognitive function, and the risk of addiction—is encouraging this shift. Consumers are becoming more conscious of their health, and non-alcoholic beers have become an attractive alternative, offering the same enjoyment as alcoholic beverages without the associated risks.
Growth in Online Direct-to-Consumer (DTC) Channels Expanding Access
The non-alcoholic beer market is benefiting from the growth of online direct-to-consumer (DTC) channels, which make these beverages more accessible, especially in niche markets. Unlike alcoholic beverages, which require special licenses and approval for manufacturing and selling, non-alcoholic beers do not face such regulatory hurdles, allowing them to be sold more easily on e-commerce platforms. The convenience of online shopping, combined with doorstep delivery, has spurred growth in non-alcoholic beer sales. In regions where these products are not readily available in physical stores due to limited consumer demand, online DTC channels offer an important solution, expanding market reach and consumer access.
Non-Alcoholic Beers Gaining Popularity in Bars and Restaurants
The growing demand for non-alcoholic beverages has prompted many bars and restaurants to add non-alcoholic beers to their menus, contributing to the growth of sales. In the past, these establishments typically stocked only alcoholic drinks, leaving non-drinkers with limited options such as soft drinks, water, or mocktails. However, as non-alcoholic beers become more popular, they are now available in dining and social settings, appealing to a broader range of consumers. This inclusion not only enhances the variety of beverages offered but also opens up new revenue streams for businesses. Non-alcoholic beers are often marketed as premium or artisanal products, allowing bars and restaurants to charge competitive prices and increase their overall profitability.
Country-wise Insights
The following table shows the estimated growth rates of the top three countries. The USA and Germany are set to exhibit target product sales, recording CAGRs of 7.5% and 8.2%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 | |
| The USA | 7.1% | |
| Germany | 6.8% | |
| UK | 6.5% | |
USA dominated the non-alcoholic beverage sales due to health awareness and changes in the drinking habits
The sales of Non-alcoholic beer in the United States are projected to exhibit a CAGR of 7.1% during the assessment period of 2024 to 2034. By 2034, revenue from the sales of the Non-alcoholic beer sales in the country is expected to reach USD 5,534.8 million.
Consumers in the United States are increasingly searching and opting for products that are alternatives to traditional alcoholic beverages due to increasing health awareness regarding the consumption of alcohol daily. This trend led to the growth of demand for the target product across the USA.
This growth is supported by the presence of non-alcoholic beer in various bars and restaurants also at the canteens of hostels and colleges. Along with this, craft breweries and microbreweries are entering into the non-alcoholic segment with the development of diverse flavor target products.
Strong beer culture and innovative brewing processes in Germany led to the growth of the target product
The sales of Non-alcoholic beer in Germany are projected to exhibit a CAGR of 6.8% during the assessment period of 2024 to 2034. By 2034, revenue from the sales of the Non-alcoholic beer sales in the country is expected to reach USD 3,733.8 million.
Strong beer culture in the Germany and high acceptance of non-alcoholic alternatives surges the target product sales. The country has a long tradition of brewing and stringent quality control of various alcoholic beverages since ancient times.
Also, innovative technology for the brewing of final products has become more popular across the globe. This trend in the country with the high acceptance of non-alcoholic beers without sacrificing the traditional taste of beer led to the growth of the target product.
Increasing popularity and options in the UK tend to surge the sales of the target product
The sales of Non-alcoholic beer in the UK are projected to exhibit a CAGR of 6.5% during the assessment period of 2024 to 2034. By 2034, revenue from the sales of the Non-alcoholic beer sales in the country is expected to reach USD 1,976.7 million.
Increased consumer interest in non-alcoholic beverages such as beer due to health effects. Consumers opt for the products that will satisfy them without hampering their health conditions. The industry is flourishing with non-alcoholic beers with diverse flavors as per the consumer demand. This growth is also supported by the establishment of microbreweries in major cities.
Regional Analysis of the Non-Alcoholic Beers Industry
The non-alcoholic beer industry is experiencing significant growth across various regions due to changing consumer preferences, rising health consciousness, and the growing demand for alcohol-free alternatives. Each region is witnessing unique trends, with varying degrees of market penetration, consumer behavior, and product innovation.
North America:
In North America, particularly the United States and Canada, the non-alcoholic beer market has seen substantial growth. The increasing awareness about the health risks associated with alcohol consumption, combined with the rise of the “zero-proof movement,” has led to higher demand for non-alcoholic beverages. The region is known for its diverse consumer base that seeks healthier and more responsible drinking options. Major beer companies such as AB InBev, Heineken, and Molson Coors are heavily investing in non-alcoholic beer offerings, and there is a noticeable trend toward craft and artisanal non-alcoholic beers. The popularity of online shopping and DTC (direct-to-consumer) channels has also facilitated easier access to non-alcoholic beer in the region.
Europe:
Europe remains one of the largest markets for non-alcoholic beer, with countries like Germany, the Netherlands, and the UK leading the way. Germany, in particular, has a long tradition of beer brewing, and the acceptance of non-alcoholic beer is rapidly growing, driven by health-conscious consumers and changing lifestyles. In the UK, non-alcoholic beer has become a significant part of the mainstream beverage industry, with an increasing number of bars, restaurants, and pubs offering alcohol-free beer options. The availability of non-alcoholic beverages at social gatherings, along with innovative flavor profiles, has also contributed to the sector’s growth. In addition, the demand for premium and craft non-alcoholic beers in Europe is rising, with small breweries experimenting with flavors and brewing techniques.
Asia-Pacific (APAC):
The APAC region is experiencing robust growth in the non-alcoholic beer market, driven by changing consumer lifestyles and growing health awareness. Countries like Japan, China, and India are seeing increasing adoption of non-alcoholic beers, particularly among younger consumers who are more health-conscious. In Japan, non-alcoholic beer is already well-established, with major players like Asahi and Kirin offering alcohol-free options. The rising number of fitness enthusiasts and the increasing trend of mindful drinking in APAC countries contribute to the market’s growth. However, there is still room for growth in terms of product awareness and availability, particularly in emerging economies like India, where the demand for non-alcoholic beers is gradually increasing.
Latin America:
In Latin America, the demand for non-alcoholic beer is slowly gaining traction, with countries like Brazil and Mexico leading the market. Brazilian consumers are increasingly opting for healthier beverage options, which has contributed to the growth of the non-alcoholic beer sector. As health and wellness trends become more prominent in the region, non-alcoholic beer is seen as an alternative for those who want to enjoy the taste of beer without the negative effects of alcohol. However, the market is still in the early stages, and there is a need for increased consumer education and product innovation to drive growth.
Middle East & Africa (MEA):
The Middle East and Africa region presents a unique market for non-alcoholic beer, primarily driven by cultural and religious factors that restrict the consumption of alcoholic beverages. Non-alcoholic beer is gaining popularity in countries like the UAE, Saudi Arabia, and Egypt, where there is a large demand for alcohol-free alternatives that offer a similar taste and experience to traditional beer. The increasing number of expatriates in the region, along with the growing trend of health and wellness, has contributed to the market’s expansion. Despite these positive trends, market growth remains constrained by strict regulations in some countries regarding the sale and distribution of alcohol-free beer.
Detailed Market Study: Full Report and Analysis
https://www.futuremarketinsights.com/reports/non-alcoholic-beer-market
Competition Outlook
The key players in the Non-alcoholic beer industry are continuously innovating to introduce new products with improved processes and products with diverse ingredients and flavors. Product development with innovation plays a crucial role in the market approach.
Manufacturers continuously work to improve the quality, and sensory attributes of Non-alcoholic beer while maintaining the organoleptic properties of traditional ones. Through ongoing research and development, manufacturers aim to differentiate their products in terms of quality, reliability, and suitability for widespread consumers.
For instance
- World-leading brewery Anheuser-Busch InBev, introduced its first product into the non-alcoholic beer Portfolio, named the Budweiser 0.0. The company is targeting consumers who do not consume alcohol, with the tagline of “anyone, anywhere”
Leading Non-alcoholic Beer Brands
- Big Drop Brewing Co.
- Anheuser-Busch InBev
- Heineken N.V.
- Bernard Family Brewery Inc.
- Moscow Brewing Company
- Carlsberg A/S
- Suntory Beer
- Erdinger Weibbrau
- Arpanoosh CO
- Krombacher Braueri
- Daffodils Beverages
Key Segments of Market Report
By Product:
This segment is further categorized into Alcohol-free, Low Alcohol
By Category:
This segment is further categorized into plain and flavored
By Material:
This segment is further categorized into Malted Grains, Hops, Yeasts, Enzymes, Others
By Sales Channel:
This segment is further categorized into Convenience Stores, Liquor Stores, Supermarkets, Restaurants & Bars, Online Stores
By Region:
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
Authored by:
Nandini Roy Choudhury (Client Partner for Food & Beverages at Future Market Insights, Inc.) has 7+ years of management consulting experience. She advises industry leaders and explores off-the-eye opportunities and challenges. She puts processes and operating models in place to support their business objectives.
She has exceptional analytical skills and often brings thought leadership to the table.
Nandini has vast functional expertise in key niches, including but not limited to food ingredients, nutrition & health solutions, animal nutrition, and marine nutrients. She is also well-versed in the pharmaceuticals, biotechnology, retail, and chemical sectors, where she advises market participants to develop methodologies and strategies that deliver results.
Her core expertise lies in corporate growth strategy, sales and marketing effectiveness, acquisitions and post-merger integration and cost reduction. Nandini has an MBA in Finance from MIT School of Business. She also holds a Bachelor’s Degree in Electrical Engineering from Nagpur University, India.
Nandini has authored several publications, and quoted in journals including Beverage Industry, Bloomberg, and Wine Industry Advisor.
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