Welcome to the age of alcohol-free Beer

Alcohol-free beer has existed for a long time but over the past 10 years, the surge in sales is something to take notice of for all the brewers around the world. In 2024 the non-alcoholic beer market is poised to be a $25 billion industry worldwide, with an 8% growth. While the traditional beer market is expecting a 1.8% growth. 

As the demand for non-alcoholic beverages gains traction, both established and emerging players are increasingly vying for a slice of the action. 

Heineken, in particular, experienced a surge in its market performance last year, bolstered by the resounding success of its Heineken 0.0 offering. Impressively, the brand sold a staggering 13.1 million hectoliters of non-alcoholic beer, equivalent to more than 500 Olympic-size swimming pools of non-alcoholic brew.

The positive momentum is not exclusive to Heineken alone. Carlsberg has witnessed a similar surge in volumes, with a notable 33% growth in Western Europe following the introduction of non-alcoholic product lines. 

Eyeing significant growth, industry titan ABInBev has set ambitious targets, aiming for low/non-alcoholic brands to account for 20% of its global volume by 2025, a substantial increase from its current 8%. 

The non-alcoholic beer market, currently dominated by North America and Europe, is showing promising signs of expansion in other regions, most notably Asia-Pacific, the Middle East, and Latin America.

In the Asia-Pacific region, strong economic growth in countries like China, India, and South Korea is expected to fuel substantial market growth. India, in particular, anticipates a Compound Annual Growth Rate (CAGR) of 9% in the non-alcoholic beer segment following the recent introductions of Budweiser 0.0 and Heineken 0.0. 

China is also seizing the opportunity, with an impressive 29% of all beer products launched in 2016 belonging to the low or no-alcohol category.

Europe continues to maintain its position as a stronghold for the non-alcoholic beer market. Spain, Germany, and Poland lead the way, with low and non-alcoholic beer launches contributing to 12% of introductions in Spain, 11% in Germany, and 9% in Poland. 

However, industry analysts are eyeing even greater potential in the Middle East and Africa, where the non-alcoholic beer market shows an astounding 30% growth rate. These regions are poised to become significant players in the global non-alcoholic beer landscape, providing substantial opportunities for industry players.

Since the alcohol ban in 1979, the Middle East has emerged as a substantial market for non-alcoholic beer, representing nearly a third of the global demand. This demand is largely fueled by countries like Iran, Saudi Arabia, and Egypt, which have strict alcohol consumption laws. In Iran, for instance, approximately 33 domestic companies produce non-alcoholic beer.

These regions often market non-alcoholic beer as malt beverages, available in various flavours like peach, vanilla, and coffee. Moreover, the tight alcohol regulations have encouraged innovation in this part of the world. 

Fayrouz, a prominent brand in the Middle East, established the world's first Halal beer, utilising a unique brewing technique that prevents malt fermentation, ensuring the final product remains alcohol-free.

The surge in non-alcoholic beer sales can be attributed to several factors. Some argue that this trend aligns with the wellness movement, as an increasing number of individuals seek to reduce calorie consumption and enhance post-workout recovery.

Furthermore, changing social attitudes have led to a decrease in alcohol consumption, driven in part by grassroots movements like the "sober curious" phenomenon. Initiatives such as Dry January and Sober October, which collectively generate nearly 50,000 monthly searches on Google, have played a significant role in this shift.

Non-alcoholic beverages offer beer companies an opportunity to engage with an entirely new consumer segment – individuals who abstain from alcohol altogether. Additionally, more people are choosing to quit alcohol consumption, as exemplified by Twitch co-founder Justin Kan, who recently announced his permanent abstinence from alcohol and founded a Telegram group of over 1,500 like-minded individuals.

European and North American countries are also trying to curb alcohol-related accidents on the road, by enforcing "Zero Tolerance" for drinking limit while driving is also having an effect on alcohol sales and people seem to be enjoying the low alcohol or alcohol-free beverages.

As more non-alcoholic beer is produced, the demand for raw materials will naturally also increase. This includes hops, which are projected to grow at 6.5% through 2024 –– but also the enzymes that play a critical role in processing and fermenting beer. 

Non-alcoholic products enjoy broader sales opportunities compared to their alcoholic counterparts. They're not limited to bars and liquor stores, but are also available in convenience stores, supermarkets, online, and even gyms and health food stores.

Non-alcoholic drinks are increasingly favoured by athletes for their lower calories and associated health benefits. These trends have led gyms like Germany's McFit Fitness to offer non-alcoholic options, including Heineken 0.0.

There's a rising population around the world who can be branded as "sober curious". It is also great for cutting down on your alcohol consumption.  With a wide variety of flavours and brands available, there's a non-alcoholic beer out there for everyone.