Nonalcoholic beer has gained popularity, especially after significant investments from major breweries. Despite this growth, it constitutes only 2% of the global beer market, with projections indicating annual growth rates slowing to about 8% through 2029. The beer industry faces numerous challenges, including competition from craft beers, hard seltzers, cannabis legalization, and changing consumer preferences. The largest brewers are focusing on nonalcoholic options to pursue organic growth, but overall beer volumes are expected to remain flat over the next five years.
The category boomed in recent years as the likes of Anheuser-Busch InBev, Heineken NV, and Diageo Plc poured in money. But after those gains made it one of brewing's few bright spots, it's still just 2% of the global beer market's volume, according to IWSR.
At this point, nonalcoholic beer is far from a panacea. IWSR projects that global beer volumes will be flat over the next five years, even with the growth in nonalcoholic brews.
They have no choice but to get into alcohol free. It's one of the few remaining growth levers for large brewers as they adapt to changing consumer habits.
The first phase of nonalcoholic beer's expansion came from startups that focused on it. Firms such as Athletic Brewing Co. pushed the category toward craft brewing with tastier styles like IPA.
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