Non-Alcoholic Beer Market, Analysis By Raw Material (Malted Grains, Hops, Yeast, and Others), By Flavor (Plain and Flavored), By Distribution Channel (Supermarkets/Hypermarkets, On-Premise, Liquor Stores, Convenience Stores, Online Stores, and Others), and Regional Forecast, 2024-2032

The rising awareness related to the negative effects of alcohol consumption and the growing consumer consumption toward malt beverages are the major factors supporting the penetration of non-alcoholic beer in the market. According to the World Health Organization (WHO) Report 2022, globally, the consumption of alcohol causes 3 million deaths every year, representing 5.3% of all deaths. Therefore, many health-conscious millennials and adults cut back on their alcohol consumption and spend more on non-alcoholic beverages propelling the sales of non-alcoholic beer. Therefore, the growing consumer interest in health and well-being led manufacturers to develop innovative products to fulfill the demand. For instance, in January 2021, Heineken N.V., a Dutch brewing company, expanded its portfolio of zero-alcohol beers with the launch of Desperados Virgin 0.0% beer. The company launched the new product due to health-conscious consumers' rising demand for zero or low-alcohol beers.

Furthermore, the growth of the non-alcoholic beer industry is expected to be fueled by several major factors, including rising investment in non-alcoholic beer production and expansion of production capacities. For instance, in October 2022, Keurig Dr. Pepper, an American multinational soft drink company, invested USD 5 million in non-alcoholic craft beer producer Athletic Brewing Co. after acquiring a minority stake. Athletic Brewing offers more than 40 different non-alcoholic beer options to consumers. Thus, the acquisition and further investment would offer Keurig to grow its business in the rapidly non-alcoholic beer industry.

Impact of COVID-19 on the Non-Alcoholic Beer Market

COVID-19 had a neutral impact on the non-alcoholic beer market growth. The pandemic led governments to imply restrictive containment measures, including national lockdowns, curfews, and social distancing mandates, which increased beverage purchases for home consumption, especially non-alcoholic beverages. However, production and supply chain issues hindered the product's sales in a few countries. Health awareness among consumers increased during the pandemic as consumers became more selective and opted immunity boosting food and beverage products. The companies, therefore, diversified their product portfolio by offering new products under these categories. For instance, in May 2020, the Simon Brewery, a flagship brewery in Luxembourg, launched a lime and ginger non-alcoholic beer. The new products contain less than 24 kcal per 100ml and meet the growing trend toward moderate alcohol consumption and a healthier lifestyle during the pandemic.

Key Insights

The report will cover the following key insights:

• The product launched by key market players


• Overview of the global non-alcoholic beer market


• Impact of COVID-19 on the non-alcoholic beer market


• Drivers of the non-alcoholic beer market


• Recent investments in the non-alcoholic beer market

Analysis by Raw Material

The malted grains segment is expected to hold a major non-alcoholic beer market share. Malted grains give a unique taste, with notes of fruit and caramel and a touch of yeastiness to the beer. The malt extract enhances the taste of acids and flavonoids in the beverage, changing the overall taste of the product. The growing popularity of malted beverages led manufacturers to develop extracts to expand their range of flavors and scale up the production of non-alcoholic beers. For instance, in May 2021, Muntons (Holdings) Plc., one of the U.K.'s leading suppliers of brewing and distilling malts and malted ingredients, launched its new premium alcohol-free malt extract. The new product forms a versatile base for manufacturing great-tasting alcohol-free beer.

The hops segment is also expected to grow at a high CAGR over the forecast period as hops are used in manufacturing non-alcoholic beer for their distinct flavor and preservative capacities.

Analysis by Flavor

The flavored segment is expected to hold a major share of the global non-alcoholic beer market. The need for the dealcoholization process has increased consumers' preferences for flavored beers. The millennial generation's inclination to try different flavors in mixed brews and beverages further fuels the demand for flavored beers in the market. The key players in the market are introducing new products to attain a competitive edge and offer a wide variety of flavored beers. For instance, in September 2022, Anheuser-Busch India, a multinational drinks conglomerate, introduced a new range of fruit-flavored beers from Hoegaarden, one of the leading global super-premium brands. The introduction of Hoegaarden flavors further strengthened the company's leadership position in the non-alcoholic beer category.

Analysis by Distribution Channel

The supermarkets/hypermarkets segment is expected to hold a major share of the market. Supermarkets/hypermarkets offer a range of non-alcoholic beverages, including beers, spirits, and other beverages. The expanding network of supermarket outlets globally is another driver propelling the sales of non-alcoholic beers. Such stores offer multiple brands in a single place with various payment options such as barcode scanning, secure card payments, and product scanning methods offering hustle-free purchases to consumers.

The on-premise segment is expected to grow at a high CAGR over the forecast period. On-premise locations have been catering to the growing health and wellness consciousness trends and a decrease in overall alcohol consumption. On-premise locations, such as bars, pubs, and restaurants, offer a broad range of flavors and aromas with low and no products, including beer. The growing ability of consumers to "switch" from alcohol to no alcohol across various regions further propels the sales of non-alcoholic beer across this segment.

The online segment is expected to grow at a high CAGR over the forecast period owing to attractive online advertisements and discounts on non-alcoholic beverages, providing more shopping flexibility.

Analysis by Region

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North America is expected to hold a major non-alcoholic beer market share. The young population in the region is increasingly becoming health-conscious and therefore prefers non-alcoholic drinks over alcoholic beverages. According to Pennsylvania State University Report, in 2022, 60% of the U.S. population drank alcoholic beverages, which decreased from 65% in 2019. Furthermore, the growing adoption of westernization and increasing consumer spending on beverage products are further propelling the sales of non-alcoholic beer in the region.

Asia Pacific is expected to grow at a high CARG over the forecast period. The growing trend of healthy beverage consumption and increasing popularity of extensive flavor ranges in non-alcoholic beverages propel the sales of non-alcoholic beer in the region.

Key Market Players

Key players include Heineken N.V., Anheuser-Busch InBev, Moscow Brewing Company, Carlsberg A/S, Suntory Holdings Limited, Deschutes Brewery, B9 Beverages Pvt. Ltd., Keurig Dr. Pepper Inc., Molson Coors, Privatbrauerei Erdinger Weißbräu Werner Brombach GmbH, and others.

Segmentation

Key Industry Developments

• In February 2023, Molson Coors, a Canadian-American multinational drink and brewing company, launched alcohol-free Staropramen 0.0% beer. The new product would be available in a 330ml bottle and multipacks of four bottles.


• In January 2022, Corona, a brand of Anheuser-Busch InBev, launched Corona Sunbrew 0.0% across the global market. The new product is a non-alcoholic beer that contains 30% of the daily value of Vitamin D per 330 ml serving.