PRIME+ Selling System Blog

The non-alcoholic beer segment is shaking up the BevAlc industry. In 2020, North America drove the demand, but now the popularity has spread to  Europe, Asia-Pacific, South America, Africa, and the Middle East. It isn't just growing; it's exploding.  The market hit over $15 million in 2020 and is projected to reach $23.27 billion in 2025.

Why is something that was derisively referred to as "near beer" for so many years now becoming a global phenomenon? The simple answer is innovation. Brewmasters have found a way to create full-bodied, delicious flavors that capture all that beer drinkers love without alcohol. The increasing demand is a culmination of a more health-conscious population and the availability of tasty beverages that don't require a dedicated driver or produce the unfortunate side effects of alcohol.  

Why Are Consumers Receptive to Non-Alcoholic Beer?  

In the early days of non-alcoholic beer, it was an unappealing, watery brew that simply highlighted the fact that you weren't really drinking beer. For those that had no choice, it was marginally better than nothing. Fast forward to recent years, where craft brewers have challenged themselves to create a range of styles for a population that wants to minimize or eliminate their alcohol consumption while still enjoying a brew with their friends. Companies like Upstream brewing have even added low-calorie, gluten-free, and vegan-friendly options for those with dietary restrictions and those who want to minimize the impacts on their waistlines.

Athletic Brewing and Partake Brewing are leading the pack in innovation. Partake has reimagined the full spectrum of craft beer, just without the alcohol. They've successfully produced everything from IPAs to Pale Ales to dark malts. Upstream Brewing Company even posits that non-alcoholic beer has numerous health benefits, such as increased bone mineral density, reduced risk of osteoporosis, improved cardiovascular health, and stimulated breast milk production in nursing mothers.

Non-alcoholic beer has earned itself the title of the next big thing.  So much so that Athletic Brewing does nothing but NA beer, raising a total of $20 million in capital. They've firmly ensconced themselves into the market with delicious drinks, few restrictions on e-commerce, and a slew of celebrity endorsements. Other traditional brewers are taking it a step further: Blue Moon creator Dr. Keith Villa has even created the first cannabis-infused beer company, CERIA Brewing. 

What's Next for Non-Alcoholic Beer?  

Even with the explosive growth, NA beer still only represents approximately 1% of all beer sales. That statistic, combined with the current trajectory, gives it massive growth potential. Millennial and Gen Z drinkers are driving a lot of the demand, and that's anticipated to continue as more Gen Zers come of drinking age. The emergence of non-drinking months bracketing the indulgence of the holiday season like Sober October and Dry January has also contributed to the popularity of alcoholic beverage alternatives.

Restaurateurs have also seen more interest in NA beer. More customers are ordering these alternatives, whether for health reasons, to slow down alcohol consumption between other drinks, or a permanent lifestyle change. Julia Momose, co-owner of Kumiko in Chicago, believes that the interest will rise even more with a change in how the products are titled: she feels the current language around the brews is negative. Momose suggests using terms like spirit free will open the door for more customers to try them. 

The no or low alcohol trend continues to rise globally. According to Nielsen CGA research, 58% of people opted for more no or low alcohol beverages in the later part of 2021 than in the previous year, with 80% of those enthusiastically seeking even more options. People are seeking moderation, not always complete abstinence. Craft brewers are answering the call with high-quality brews that stand on their own merits of flavor, mouthfeel, and variety.  

Is There a Future for Non-Alcoholic Beer? You Can Bet on It! 

Consumers are increasingly becoming more socially conscious and health-centric. Yet, no one wants to feel left out of the party while drinking a glass of sparkling water or Ginger Ale. Why pass up the craft beer tastings or a summer picnic brew when you don't have to? Craft brewers recognize there is more to raising a glass of beer than meets the eye.

There is a familiarity and nostalgia of good times past tinged with the realization that they don't want the risks or health impacts that alcohol imparts. There is camaraderie in sharing a beer while watching sports, cooking burgers, fishing, or just sitting on the porch after a long day. The good news for craft beer fans is that they can have their brew and drink it too. Today there are more options than ever, and forward thinkers are betting on the long-term growth and viability of the NA segment.