A significant number of companies, including those owned by public figures, are increasingly interested in the non-alcoholic beer market, which is gaining popularity among a broad range of consumers. Bump Williams, CEO of Bump Williams Consulting, predicts continued growth in this category over the next decade, with double-digit increases expected for at least the next five years.
According to Williams, drinking non-alcoholic beer has transformed from being mostly associated with recovering alcoholics to an accepted lifestyle choice. Today’s 21+ consumers are more conscious of health, wellness, moderation, and the taste and flavor of their beverages compared to previous consumers of non-alcoholic products. Non-alcoholic beer, once predominantly popular during Dry January or as an alternative for individuals avoiding alcohol, is advancing significantly within the industry, occasionally surpassing its alcoholic counterpart. This trend suggests it is more than just a passing fad, and the recent launch of Bero, a premium option developed by CEO John Herman and actor Tom Holland, further highlights this shift in consumer behavior.
John Herman told Fox Business that the desire for individuals to be mindful about their body intake while still cherishing memory-making experiences is a trend likely to persist. He remarked that non-alcoholic beer provides a taste and experience similar to its alcoholic version, a characteristic not common across all beverage categories. Bero has started distributing its product in restaurants across New York and Los Angeles.
Robert Ottenstein, an analyst at Evercore ISI, acknowledged the creation of super-premium non-alcoholic beers such as Bero as a key contributor to the growth of this category. He also mentioned the focus on moderation, improvements in brewing technology that enhance the taste of non-alcoholic beers, and the marketing strategies of major companies like AB-InBev, Constellation Brands, and Molson Coors as influential factors. These companies have been instrumental in developing non-alcoholic versions of their beers with unique taste profiles. Ottenstein noted that these efforts have created a critical mass among beer distributors and retailers, validating the category and making such products more available in various markets.
Ottenstein projects that this category could continue to grow at a faster rate than regular beer and potentially exceed 5% of the total U.S. beer market. This outlook contrasts with the earlier status of the category. Bill Shufelt, co-founder and CEO of Athletic Brewing Company, which holds over 19% market share in the non-alcoholic beer segment, stated that demand for such beers is at an all-time high.
In 2018, when Athletic Brewing Company launched commercially, the non-alcoholic beer category was relatively dormant, accounting for only 0.3% of the total beer sales. Shufelt explained that several industry experts were initially skeptical about a brewery focused solely on non-alcoholic beer, questioning whether there was sufficient consumer demand without incorporating full-strength beers. However, Shufelt’s persistence proved fruitful, as this category now surpasses all other segments in beer industry growth. He highlighted that a growing number of Americans, 45%, now view consuming one to two drinks per day as detrimental to health.
Shufelt referenced data from the global marketing research firm NIQ, which indicated that off-premise sales of non-alcoholic beer rose from $135.2 million in 2018 to $487.3 million by 2023. As of this year, sales have already exceeded $541 million.