The world of beer is witnessing a quiet revolution, as non-alcoholic beer steadily climbs up the ranks to potentially claim the second-largest beer category by volume worldwide this year. This shift comes on the heels of new projections by industry tracker IWSR, signaling a significant change in consumer preferences and trends.
In 2024, while the overall volume of traditional beer experienced a slight decline of about 1%, its non-alcoholic counterpart saw a remarkable global growth of 9%. This surge in popularity for non-alcoholic beer began gaining momentum back in 2018 and has since maintained its lead over the broader beer market. IWSR forecasts an impressive annual growth rate of 8% for non-alcoholic beer until 2029, contrasting with ale’s expected decline of 2% annually during the same period.
Despite these promising figures, it’s essential to note that non-alcoholic beer still has a long way to go before claiming the top spot globally, currently holding just a modest 2% market share. Lager remains firmly entrenched as the reigning champion with a commanding 92% market share. Yet, even lager is feeling the pressure from its zero-proof counterpart’s rapid ascent.
The growing appeal of non-alcoholic beer can be attributed to shifting consumer behaviors, with more individuals opting to reduce their alcohol intake. This trend is particularly pronounced among younger demographics; Gen Z and millennials are leading the charge towards moderation rather than abstinence. Terms like “sober curious” and “damp lifestyle” have emerged to encapsulate this evolving mindset around alcohol consumption.
Major players in the brewing industry have taken notice of this cultural shift and invested heavily in developing high-quality non-alcoholic alternatives that closely mimic their alcoholic counterparts. Brands such as Diageo’s Guinness, Heineken, and Anheuser-Busch InBev’s Budweiser have all introduced zero-proof versions within the past five years.
In terms of sales performance, global retail figures for non-alcoholic beers surpassed $17 billion in 2023. Notable markets such as Germany, Spain, and Japan led the pack in embracing this trend. Interestingly, although ranking sixth in sales volume globally for no-alcohol beers, when measured by overall sales penetration levels, the U.S. doesn’t fare as well.
One standout success story within this burgeoning sector is Athletic Brewing Company which emerged as a top player following its inception in 2018. With a remarkable rise from holding just a mere 4% market share three years ago to now commanding 17%, Athletic Brewing has disrupted the industry landscape significantly.
Moreover, even celebrities have jumped on board with their own alcohol brands – actor Tom Holland launched Bero; retired basketball star Dwyane Wade partnered with AB InBev for Budweiser Zero; podcast host and actor Dax Shepherd created Ted Segers – demonstrating that this trend towards non-alcoholic options has truly gone mainstream.
As we navigate through these changing tides within the beverage industry landscape, it becomes evident that non-alcoholic beer is not merely a passing fad but rather an enduring movement reshaping how we perceive and consume one of humanity’s oldest beverages.
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