May 5, 2024

News and Political Commentary

A ‘moderation movement,’ not Dry January, is driving the growth of non-alcoholic beer

2 min read

Non-alcoholic beer was once at the easily-dismissed bottom rack of the alcohol aisles in stores. Now, it’s cool—ask Gen Z about it. 

The category has been fast-expanding as consumers look for healthier options, while not compromising on taste and quality. For a long time, it wasn’t possible to achieve that trinity. 

But with brands—big and small, international and local—venturing into the space, drinkers have more choices than ever before.

This growth comes at a time when “regular” beer consumption is experiencing somewhat of a decline. Take the example of historically beer-loving Germany, the home of Oktoberfest. People there have been falling out of love with beer in recent years with a marked decline in consumption—just last year, beer sales fell 4.5%, according to official figures. Germany is now among the top European markets for non-alcoholic beer, data from beverage market research group IWSR reveals.  

While that might sound grim for some traditional brewers, it just means that a new product category adjacent to beers is opening up for the alcohol-avoidant crowd. Globally, the non-alcoholic beer market was valued at $22 billion in 2022, and it’s expected to grow a steady 5.5% in the next 10 years, market research group Global Market Insights found. 

Moving away from ‘tired and dusty’ 

With “Dry January” in the rear-view mirror, one thing’s clear—while it’s a great way to get people to consider alcohol-free drink options, opting for such drinks is well beyond a one-month fad. Consider Lucky Saint, Britain’s top brands dedicated to alcohol-free beer, according to market research firm Circana—the company saw a whopping 158% sales growth in the week leading up to Christmas compared to the same period a year ago.  

The trend has also caught the attention of the world’s biggest players. Alison Payne, brewing behemoth Heineken’s global marketing director of zero alcohol beverages, has observed…

Prarthana Prakash

2024-02-18 03:00:00

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