Non-Alcoholic Beer Market

Market Perspective

The global Non-Alcoholic Beer Market was valued at USD 23.12 billion in 2022 and is projected to reach USD 41.56 billion by 2030, growing at a CAGR of 7.45% from 2023 to 2030.

The non-alcoholic beer industry worldwide has observed substantial expansion in recent times. This growth can be attributed to several factors, including the growing awareness of health among consumers, the increasing number of individuals opting for an alcohol-free lifestyle, and the wider availability of different types of beer. Furthermore, market growth is being fueled by the rising trend of socializing and consuming non-alcoholic beverages in different social contexts. Moreover, there is a growing demand for non-alcoholic beer in the market. This can be attributed to the introduction of innovative brewing techniques that enable the production of flavorful and satisfying alcohol-free alternatives. As a result, a wider range of consumers, including those who previously abstained from beer due to its alcoholic content, are now drawn to non-alcoholic options. With more breweries investing in research and development to create new and improved non-alcoholic beer offerings as well as meet evolving consumer preferences, the market is poised to observe strong growth. However, the market's potential growth may be hindered by a lack of awareness surrounding non-alcoholic beer.

Analyst’s Review on Non-Alcoholic Beer Market

The market for non-alcoholic beer is set to witness substantial growth in the coming years. The surge in product demand is fueled by the growing health consciousness among consumers, as well as the trend of moderating alcohol consumption. Furthermore, the market's expansion is supported by the increasing preference for healthier beverage options, particularly among millennials. Furthermore, the introduction of innovative flavors and improved quality of non-alcoholic beers are attracting a wider consumer base. Manufacturers are investing in research and development to enhance the taste and texture of these beverages, making them more appealing to consumers. The market is also benefitting from the expanding distribution networks, as non-alcoholic beers are becoming more readily available in supermarkets, convenience stores, and online platforms. As a result, the non-alcoholic beer market is expected to grow rapidly in the coming years.

Market Definition

Non-alcoholic beer is a beverage for individuals who desire the taste of beer but prefer to consume little to no alcohol. It provides a similar sensory experience to traditional beer but with significantly reduced or absent alcohol content. Non-alcoholic beer can be produced by eliminating alcohol from regular beer or by brewing it with a minimal alcohol concentration, usually below 0.5% ABV. This type of beer comes in an assortment of flavors and styles to cater to diverse consumer preferences.

This particular product appeals to a wide range of customers, encompassing individuals who prioritize their health, opt for non-alcoholic options, or have limitations that prevent them from consuming alcohol. Non-alcoholic beer presents a revitalizing choice for those who wish to uphold a balanced way of living while still indulging in the delightful flavor of their preferred brew.

Moreover, with the emerging trend of mindful drinking and the expanding market for non-alcoholic drinks, this particular product offers a feasible substitute for individuals who appreciate the social aspect of beer consumption but choose to avoid alcohol. Additionally, non-alcoholic beer presents a beneficial option for designated drivers or those seeking hydration without sacrificing taste.

Market Dynamics

The increasing awareness of health issues among consumers is anticipated to drive the growth of the non-alcoholic beer industry in the coming years. With more people becoming conscious of the negative effects of alcohol, there is a significant shift towards healthier beverage alternatives. Non-alcoholic beer serves as an excellent choice for those who desire the taste and experience of beer without the alcohol content. Consequently, the demand for non-alcoholic beer is expected to rise steadily, presenting manufacturers with ample opportunities to expand their product offerings and cater to the growing population of health-conscious consumers. In addition to its health advantages, non-alcoholic beer also appeals to designated drivers and individuals who abstain from alcohol due to personal or religious reasons.

For instance,

• In December 2022, according to CNBC, non-alcoholic beers made up more than 2% of all beer sold at U.S. grocery stores, and for some national chain retailers, it was upwards of 8% of their beer category.

Furthermore, as brewing techniques have advanced, non-alcoholic beers have dramatically improved in taste and quality, becoming a realistic option for beer connoisseurs. As customers prioritize their health, the market for non-alcoholic beer is likely to grow, prompting more breweries to invest in this profitable section of the beverage business that drives the growth of the market.

However, high prices associated with non-alcoholic beer is expected to limit the growth of the market. The increasing need for healthier options and a trend towards more conscientious drinking practices can be hindered by the higher price of non-alcoholic beverages. This pricing barrier may restrict the market's growth potential, especially among price-sensitive consumers who may opt for other low-cost beverage options instead.

Segmentation Analysis

The global non-alcoholic beer market is segmented based on product, material, category, sales channel, and geography.

Based on type, the non-alcoholic beer market is bifurcated into alcohol-free and low-alcohol. The Alcohol free segment held the largest market share in 2022 due to various factors such as growing interest in reducing alcohol intake due to increased health consciousness among consumers. In addition, alcohol-free beer is specifically designed for individuals who are looking to adopt a healthier lifestyle while still being able to enjoy the taste and social aspects of beer-like beverages. Furthermore, this particular category of beer offers a comparable, invigorating taste to traditional beer, minus the negative effects of alcohol. It serves as an excellent option for individuals who prioritize their health without compromising on the enjoyment of drinking beer. These factors contribute to its growing popularity and stimulate market advancement.

Based on material, the non-alcoholic beer market is bifurcated into yeasts, malted grains, hops, and enzymes. Malted grains are expected to hold a significant revenue share due to their enhanced sweetness and rich, malty flavor profile resulting from the malting process. As a result, they are preferred by consumers seeking a non-alcoholic alternative that maintains taste and satisfaction. Moreover, malted grains supply the essential sugars required for fermentation, enabling non-alcoholic beers to mimic the brewing process of alcoholic ones. The demand for malted grains is boosted by these advantages.

Based on distribution channel, the non-alcoholic beer market is bifurcated into store-based and non-store-based. The store-based segment is expected to hold a significant revenue share in the non-alcoholic beer market in the year 2022. This is due to the availability of non-alcoholic beers primarily facilitated by the convenience offered through traditional store-based channels. Consumers have easy access to these products in supermarkets, convenience stores, and liquor stores. These channels also provide a wider range of non-alcoholic beer options compared to other distribution methods, allowing consumers to select from various brands, flavors, and styles. Additionally, these physical stores create an environment where consumers can physically explore and compare different non-alcoholic beer products, consequently affecting their purchasing choices. In summary, store-based channels ensure convenience, diversity, and a personalized shopping experience for consumers interested in exploring the realm of non-alcoholic beer.

Geographical Analysis

Based on region, the global non-alcoholic beer market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Europe held the largest market share in 2022, as there is a strong cultural tradition of beer consumption in the continent. As health-consciousness grows, non-alcoholic substitutes has gained popularity amongst consumers. In addition, European breweries have been quick to adapt and innovate in response to this growing demand, offering a wide range of high-quality non-alcoholic options. Furthermore, strict regulations and quality standards imposed on European breweries also play a role in their dominance, as consumers trust the authenticity and safety of these products. Moreover, the region's well-developed distribution networks and extensive market penetration in the area provide them with a distinct advantage, fueling the growth of the market within the region. 

Asia-Pacific is expected to be the fastest-growing region in the non-alcoholic beer market as there is a growing health consciousness among consumers in this region, which is leading to an increased demand for healthier beverage options. In addition, the younger generation in Asian countries are increasingly adopting a more health-conscious lifestyle and are actively seeking non-alcoholic alternatives to fit their preferences. This shift in consumer behavior has prompted breweries to invest in the development and production of non-alcoholic beer to meet this growing demand. As a result, the market for non-alcoholic beer in this region is expected to continue expanding in the coming years.

Competitive Landscape

The global non-alcoholic beer market study will provide valuable insights with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing heavily/extensively in R&D activities, building new manufacturing facilities, and supply chain optimization. The major players in the non-alcoholic beer market are:

• Carlsberg Breweries A/S
• Heineken N.V.
• Moscow Brewing Company
• Bernard Family Brewery Inc.
• Big Drop Brewing Co.
• Coors Brewing Company
• Erdinger Weibbrau
• Krombacher Brauerei
• Royal Swinkels Family Brewers
• SUNTORY HOLDINGS LIMITED

Key Developments

• April 2022- Nestlé-owned Gerber launched a new line of carbon-neutral, plant-protein non-alcoholic beer, called Plant-tastic.
• November 2020- Abbott launched its most innovative infant formula yet, Similac Pro-Advance® with 2'-Fucosyllactose Oligosaccharide† (2'-FL†), which is the first product in Canada with this breakthrough ingredient in infant formula.

The global Non-Alcoholic Beer Market is segmented as:

By Product

• Alcohol-Free
• Low-Alcohol

By Material

• Material
• Yeasts
• Malted Grains
• Hops
• Enzymes

By Category

• Plain
• Flavoured

By Sales Channel

• Store Based
• Non-Store Based

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America