A non-alcoholic beer photographed for food on March 11, 2024 in Washington, DC.
Scott Singman | Washington Post | Getty Images
According to new forecasts from industry tracker IWSR, non-alcoholic beers are on track to overtake Ale as the second largest beer category in the world this year.
According to IWSR, overall beer volume fell by about 1% in 2024, while the volume of non-alcoholic counterparts increased by 9% worldwide. The growth in this category accelerated in 2018 and has since surpassed the wider beer market.
IWSR predicts that no-alcoholic beers will grow by 8% each year through 2029, but the ale volume is expected to slide by 2% per year over the same period.
Despite recent growth, no-alcoholic beers are far from becoming the top-selling beer category worldwide, holding only about 2% of the global beer market share. With a market share of 92%, lager is the largest beer category, although at a slower pace than non-alcoholic beers, and is still growing.
No-alcohol beer became popular as more consumers reduced their alcohol consumption, prompting brewers to invest in zero-proof alternatives. This trend is particularly impressive in a cohort of younger ages. According to IWSR, Gen Z is less than the previous generation, and millennials hold the largest share of no-alcohol drinkers. Rather than abstaining completely, young drinkers use buzzwords such as “serene and curious” and “moist lifestyle” to ease their alcohol intake.
Additional fuel for the trend comes from companies making non-alcoholic beers that have become better at mimicking the taste of alcoholic twins. Virtually all major beer brands Diageo To Guinness Heineken and Anheuser-Busch Inbev’s Budweiser has rolled out a zero-proof version over the past five years.
According to Bernstein, global retail sales of non-alcoholic beer exceeded $17 billion in 2023. Looking at the global market, Germany, Spain and Japan purchased the most non-alcoholic beers that year. The US ranked sixth in sales of no-alcoholic beer, but the rankings fell even further as measured by overall sales penetration.
Much of the US growth is being driven by Athletic Brewing, the now top selling no-alcohol beer brand. Founded in 2018, Upstart holds 17% of the category’s volume share and edging the 0.0 versions of AB Inbev’s Bud Zero and Heineken. Just three years ago, Athletic held only a 4% stake. The company was reportedly valued at around $800 million in its latest funding round in 2024.
Even non-alcoholic beers weren’t immune from the rash of celebrity-supported alcohol brands. Actor Tom Holland launched Bello and retired basketball star Dwyane Wade co-founded Budweiser Zero, where AB InBev and podcast host and actor Ducks Shepherd created Ted Segars.
