The Non-alcoholic beer sales reached USD 20,524.5 million in 2022, worldwide demand for Non-alcoholic beer shows a year-on-year growth of 2.8% in 2023 and thus, the target product sales are expected to reach USD 20,536.0 million in 2024.
Over the projection period (2024 to 2034), global Non-alcoholic beer sales are projected to rise at a lucrative compound annual growth rate (CAGR) of 7.9% and reach a sales value of USD 43,926.9 million by 2034 end.
Nowadays, end-use consumers are increasingly becoming more conscious of their health and are prioritizing their food and drinks, which offer health benefits beyond the basic distinctive taste of the original product.
Due to the habit of alcohol consumption, most of the population globally is suffering from various health issues related to liver, kidney, heart, etc. Because of these habits, consumers can not restrict themselves from consumption of beer or any other alcoholic beverages to satisfy their needs.
Considering this trend across the world, key manufacturing companies like, Heineken, Big Drop Brewing Co, Carlsberg, and others have innovated and developed alcohol-free beer which gives the same taste as traditional alcoholic beer without any adverse effect on the body.
This non-alcoholic beverage is made as of the traditional beer which contains little alcohol (less than 0.5% by volume (ABV)) or is completely alcohol-free. This targeted product is manufactured by the process of limited fermentation, alcoholization, and blending.
According to ABInBev which is the world’s leading brewer of alcoholic beverages, consumers are increasingly opting for non-alcoholic beers depending on different occasions.
Consumers' decisions to have drinks are made based on the daytime, the surroundings in which they are with the people, and places where they are spending their good time. It also depends on the occasion which would range from running errands to working out in the gym, to relaxing and enjoying with friends.
| Attributes | Description |
|---|---|
| Estimated Global Non-alcoholic Beer Market Value (2024E) | USD 20,536.0 million |
| Projected Global Non-alcoholic Beer Market Value (2034F) | USD 43,926.9 million |
| Value-based CAGR (2024 to 2034) | 7.9% |
Consumers are opting for products that are same in the taste, texture, and flavor as traditional beer which surges the sales for the target product across the globe. Consumers especially millennials and Generation Z are inclined more toward the health effects of individuals due to the various factors that are the main drivers for this target product globally.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global target product industry.
This analysis reveals crucial shifts in business performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the domain growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 2.8% (2023 to 2033) |
| H2 | 4.8% (2023 to 2033) |
| H1 | 6.0% (2024 to 2034) |
| H2 | 7.9% (2024 to 2034) |
The above table presents the expected CAGR for the global target product sales growth over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 2.8%, followed by a slightly higher growth rate of 4.8% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 6% in the first half and remain relatively moderate at 7.9% in the second half. In the first half (H1) the sales witnessed a decrease of 35 BPS while in the second half (H2), the target sales witnessed an increase of 42 BPS
Expanding artisanal and craft beer options in urban areas appeals to the consumers for the target product
The increasing trend of artisanal and craft no-alcoholic beer is uplift the sales of target product across the globe due to increasing urbanization like in the metro cities. This craft beer is attracting consumers due to its top quality, and uniqueness in the flavor as the traditional one without any alcohol content.
Some of the traditional beer comes in a taste that is not much accepted by consumers due to its bitterness, so craft beer comes into the picture where taste and other sensory parameters are controlled during the processing of fermentation with the ingredients.
Craft breweries and microbreweries are always popular for their commitment to quality ingredients, innovative brewing techniques, and unique flavor profiles. This brewery used the same principles in the development of target products which are similar in the taste, aroma, and mouthfeel of traditional craft beer.
These microbrewers continue their experimentation with in-house beer brewing with several ingredients. They also introduced a variety of non-alcoholic beers such as ale, stout, lager, etc.
In the many metro cities across the globe, craft beer manufacturers or microbreweries are increasing and many of these are entering into the target product due to the response of consumers for non-alcoholic malt beverages. These microbreweries are small in operation and focus on the quality of the final product.
Availability of unique and exotic flavors in the target product surges the sales
Traditionally target product options were limited in terms of variety and flavours. They were mimicking the flavors of standard lagers or pale ales. However, nowadays the taste preferences of consumers for target product have changed, and looking for different varieties of beer flavors.
This trend is increasing the target product sales by the growing number of end-use consumers who are always ready to experiment with new non-alcoholic beer flavors. Companies such as Daffodils Beverages have launched target products in various assorted flavors available at the e-commerce platform link Amazon.
Non-alcoholic beers with exotic flavors such as Malt, Mint, Ginger, Cranberry, Cranberry Sugar-Free, Peach, and Strawberry are becoming widely popular due to their sweetening and refreshing taste. As consumers become more exposed to different cuisines and ingredients through travel, media, and dining experiences, their palates are becoming more adventurous and open to trying flavors from around the world.
This trend is likely to continue as more breweries recognize the potential of flavor innovation to drive growth and differentiation in the increasingly competitive non-alcoholic beer industry.
The increasing trend of zero-proof movement across the globe surges the sales for target product
“Zero-Proof Movement” refers to the focus on the reduction or elimination of alcohol consumption for a temporary time or a permanent one without losing the sensory part of traditional alcoholic beverages. This proof in term zero-proof is used in the alcoholic industry which refers to the alcohol content in the beverage. Therefore, zero-proof drinks do not contain alcohol.
This movement is reshaping the non-alcoholic beer sales across the globe. As the movement gains traction, the target product is increasingly becoming acceptable and desirable for non-alcoholic beverages such as beers by the widespread demographic groups in several social gatherings, celebrations, and casual outings.
The main reason to surge the target product is growing awareness of the consumers regarding the health impact of alcohol. This shift is partly driven by a greater understanding of the negative effects of alcohol on physical and mental health, such as liver damage, impaired cognitive function, and the risk of addiction.
Growth in online Direct to Consumer (DTC) channels is making non-alcoholic beer more accessible, especially in niche markets
Manufacturing and selling any alcoholic beverages or products require special license and approval from the authority in any country and had to pay extra taxes on those products.
However, the manufacturing or selling of beverages that do not contain alcohol such as non-alcoholic beers need not pay any taxes and requires no other special license or approval from the legal authority. Due to this fact, the target product is listed and sold on many online e-commerce sites.
The availability of target products on the direct-to-consumer (DTC) channel gave a boost to non-alcoholic beer sales across the globe. This opens up the opportunity for the key brand to reshape the target product via consumers where they browse, discover, select, purchase, and enjoy non-alcoholic beers of global brands that are difficult to find on the traditional retail channel.
The convenience of online shopping with the delivery at doorstep without much effort led to the growth of the target product through the online direct-to-consumer channel. In some regions of the globe where non-alcoholic beers are not readily available at the physical stores due to limited demand from the consumers, online DTC comes into the picture.
The Availability of non-alcoholic beverages at bars and restaurants led to the growth of the target product
Several bars and restaurants are adding non-alcoholic beverages such as beers to their menus directly impacting the growth of the target product sales across the globe. The increasing consumer demand and preferences for non-alcoholic beverages have led to this shift. As these products become more normal in dining and drinking establishments. Due to the alcohol-free nature of the products it breaks the barriers and becomes a choice for consumers in the social gathering.
Earlier, restaurants and bars tend to keep only alcoholic beverages in their stock or shelves. This fact made it very difficult for the non-drinkers of alcohol who were limited to only intake of soft drinks, water, or fruit mocktails leaving them unsatisfied.
However, the growing popularity, demand, and development of non-alcoholic beer tend to increase the variety of beverages at restaurants and bars for non-drinkers of alcohol. These target products are also available in the college canteen or at any other place due to the nature of being alcohol-free.
From a business perspective, the inclusion of non-alcoholic beers on menus also opens up new revenue streams. These products appeal to a wide range of customers, including those who might not have ordered a drink otherwise. Additionally, non-alcoholic beers can be marketed as premium, artisanal products, allowing establishments to charge competitive prices and enhance their overall profitability.
Global Non-alcoholic beer sales increased at a CAGR of 2.9% from 2019 to 2023. For the assessment period of 2024 to 2034, the projections showcase that the sales value will expand at a CAGR of 7.9%.
A steady increase in the sales of non-alcoholic beverages such as beers across the globe in recent years can be attributed to the rising acceptance and growth of consumers for beers without alcohol which will provide the same taste, texture, and flavor as the traditional one. Consumers are also opting for products which are with diversified flavors from exotic fruits.
The manufacturer also focuses on mergers, acquisitions, partnerships, and collaboration with different companies, institutions, and research centers to hold the maximum revenue share by involving and improving the product quality and novelty by introducing various raw materials as the ingredients and attracting the consumers.
There has been considerable product and process innovation in the business, including the introduction of various flavors from different origins along with less calorie product development by reducing the added sugars. Nowadays manufacturing companies focus on the sourcing of unique flavors such as the introduction of non-alcoholic beverages with the extract of various fruits and other products.
Another reason why people are more attracted to the target products is due to convenience and good marketing strategies used by manufacturers. The fact is that these companies have identified their potential target consumer group which comprises mainly young people below the age of thirty-five years; this category has been targeted through aggressive advertisement campaigns associating them with dynamic lifestyles.
Targeting the consumers with the diversified flavors, and packaging sizes such as small canned, regular glass bottles, and drums with other ingredients to appeal to consumers towards the product.
The global Non-alcoholic beer industry has many big players such as Big Drop Brewing Co., Anheuser-Busch InBev, Heineken N.V., Bernard Family Brewery Inc., Moscow Brewing Company, Carlsberg A/S, Suntory Beer, and many more comprised a significant share of the global sales including in Tier 1 of the industry structure.
These tier 1 companies hold around 40-45% of the global revenue share. These companies have numerous manufacturing facilities that distinguish themselves based on production capacity, patented product formulation with diverse flavors for the final product and process, and widespread distribution networks across the globe that allow them to manufacture and supply their products worldwide.
They maintain rigorous quality checks across the processing line and throughout the supply chain and reduce costs due to advanced manufacturing technology with high efficiency. These big players often engage in partnership and collaboration to develop solutions that meet specific consumer needs and industry trends.
Tier 2 comprises companies such as mid-tier manufacturing firms with a significant revenue share that are operating in specific and limited geographic locations. These tier 2 companies hold around 20-25% of the global revenue share. Tier 2 companies equipped with processing plants and involved in private labeling with sound knowledge of the target product and industry.
These companies formed strategic partnerships with other companies to expand their reach beyond their limit. Companies like Erdinger Weibbrau, Arpanoosh CO, Krombacher Braueri, Daffodils Beverages, etc come under the tier 2 structure.
Tier 3 structure comprises a local company that operates on a small scale and has limitations based on their product type with the distribution and supply chain network. They operate with a local presence and serve a niche demand space.
Such players focus on product quality with traditional artisanal processing methods or technology and customer satisfaction rather than commercialization. Tier 3 companies hold around 15-20% of the global revenue share.
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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% |
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.
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.
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.
| Segment | Alcohol-Free (By Product) |
|---|---|
| Value Share (2024) | 62.1% |
Non-alcoholic beer in the alcohol-free type is dominated segment which is anticipated to register a CAGR of 5.2% during the assessment period of 2024 to 2034, to reach a sales valuation of USD 27,278.6 million in 2034.
Although the development of an alcohol-free target product needs extra efforts or steps such as limited fermentation or alcoholization, but makes the maximum share of the target product in terms of sales. This is due to, this product has high demand from consumers especially from women and mid-age populations.
| Segment | Flavored (By Category) |
|---|---|
| Value Share (2024) | 54.6% |
Non-alcoholic beer in the flavored format is dominant, which is anticipated to register a CAGR of 6.3% during the assessment period of 2024 to 2034, to reach a sales valuation of USD 23,984.1 million in 2034.
Non-alcoholic beer made from exotic flavors from the infusion of fruit extract led to an increase in demand for the target product. This flavored target product has diversified the taste experience of the consumer with the added health advantage. Also, consumers can experience the taste of regional flavor at global level.
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
This segment is further categorized into Alcohol-free, Low Alcohol
This segment is further categorized into plain and flavored
This segment is further categorized into Malted Grains, Hops, Yeasts, Enzymes, Others
This segment is further categorized into Convenience Stores, Liquor Stores, Supermarkets, Restaurants & Bars, Online Stores
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.
The global Non-alcoholic beer sales are estimated at a value of USD 20,536.0 million in 2024.
Sales of Non-alcoholic beer increased at 2.8% CAGR between 2019 and 2023.
Big Drop Brewing Co., Anheuser-Busch InBev, Heineken N.V., Bernard Family Brewery Inc., Moscow Brewing Company, Carlsberg A/S, and Suntory Beer are some of the leading players in this industry.
The North American sales are projected to hold a revenue share of 17.6% over the forecast period.
The sales are projected to grow at a forecast CAGR of 7.9% from 2024 to 2034.
| Estimated Market Value (2024E) | USD 20,536.0 million |
|---|---|
| Projected Market Value (2034F) | USD 43,926.9 million |
| Value-based CAGR (2024 to 2034) | 7.9% |
| Market Size (2023) | USD 4.9 billion |
|---|---|
| Market Projected Size (2033) | USD 10.1 billion |
| Market Value CAGR (2023 to 2033) | 7.7% |
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