Non-alcoholic beer is rapidly gaining popularity worldwide, with global sales rising 9% last year, according to data from beverage analytics firm IWSR. In contrast, sales of traditional beer declined by 1% over the same period.
By the end of this year, IWSR forecasts that non-alcoholic beer will overtake ale to become the world’s second-largest beer category by volume. Despite this momentum, non-alcoholic beer currently holds just 2% of the global beer market, while lager dominates with a commanding 92% share.
Historically, consumers seeking non-alcoholic beer had limited and often unappealing options. However, this has changed significantly. Kaleigh Theriault, director of beverage alcohol thought leadership at NielsenIQ, noted that the quality of non-alcoholic beer has improved dramatically.
“I’ve done blind taste testing of an alcoholic beer and its non-alcoholic variant, and it’s a struggle to tell the difference between the two from a flavor perspective. They’re that good,” Theriault said.
This enhanced quality is a key factor driving the category’s growth.
A decade ago, non-alcoholic options were largely limited to legacy brands like O’Doul’s and a few European imports. “There weren’t really any options that were aspirational or cool,” said Bourcard Nesin, vice president of beverage research at Dutch financial firm Rabobank.
Today, the landscape is markedly different. A wide array of non-alcoholic craft beers is now available, and major beer companies have introduced their own offerings. The appeal extends beyond non-drinkers; many regular beer consumers are also turning to alcohol-free alternatives.
Nesin noted that non-alcoholic beer provides a discreet and socially acceptable option in professional settings. “I go to conferences for work. I don’t like having a second drink in those situations because I just want to have my wits about me,” he said. “Non-alcoholic beer is an easy way to do that, without standing out.”
As taste improves and consumer demand grows, non-alcoholic beer appears poised for continued expansion in a shifting global market.
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