Non-Alcoholic Beer Market Opportunities and Strategies to 2034

This report describes and explains the non-alcoholic beer market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global non-alcoholic beer market reached a value of nearly $21.94 billion in 2024, having grown at a compound annual growth rate (CAGR) of 8.52% since 2019. The market is expected to grow from $21.94 billion in 2024 to $35.34 billion in 2029 at a rate of 10.01%. The market is then expected to grow at a CAGR of 10.40% from 2029 and reach $57.97 billion in 2034.

Growth in the historic period resulted from the rising disposable incomes, increase in legal drinking age regulations, rising health consciousness, rising awareness of diseases caused due to alcoholic beverages and rising incidence of lifestyle diseases. Factors that negatively affected growth in the historic period was tax increases.

Going forward, the growth in e-commerce, growth in urbanization and strong economic growth will drive the growth. Factor that could hinder the growth of the non-alcoholic beer market in the future include regulatory challenges.

The global non-alcoholic beer market is fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 9.37% of the total market in 2023. Anheuser-Busch InBev was the largest competitor with a 1.85% share of the market, followed by Carlsberg Group with 1.68%, Kirin Holdings Company Limited with 1.59%, Heineken N.V. with 1.23%, The Boston Beer Company with 0.86%, Diageo plc with 0.63%, Asahi Group Holdings Ltd. with 0.62%, Molson Coors Beverage Company with 0.36%, Krombacher Brauerei Bernhard Schadeberg GmbH & Co. KG with 0.29% and Vinut with 0.26%.

The non-alcoholic beer market is segmented by product into alcohol-free and low alcohol. The alcohol-free market was the largest segment of the non-alcoholic beer market segmented by product, accounting for 79.39% or $17.41 billion of the total in 2024. Going forward, the alcohol-free segment is expected to be the fastest growing segment in the non-alcoholic beer market segmented by product, at a CAGR of 10.59% during 2024-2029.

The non-alcoholic beer market is segmented by material into malted grains, hops, yeasts, enzymes and other materials. The malted grains market was the largest segment of the non-alcoholic beer market segmented by material, accounting for 63.25% or $13.87 billion of the total in 2024. Going forward, the hops segment is expected to be the fastest growing segment in the non-alcoholic beer market segmented by material, at a CAGR of 10.95% during 2024-2029.

The non-alcoholic beer market is segmented by distribution channel into store-based and non-store-based. The store-based market was the largest segment of the non-alcoholic beer market segmented by platform, accounting for 75.79% or $16.62 billion of the total in 2024. Going forward, the non-store-based segment is expected to be the fastest growing segment in the non-alcoholic beer market segmented by platform, at a CAGR of 11.42% during 2024-2029.

The non-alcoholic beer market is segmented by category into plain and flavored. The flavored market was the largest segment of the non-alcoholic beer market segmented by category, accounting for 59.80% or $13.12 billion of the total in 2024. Going forward, the flavored segment is expected to be the fastest growing segment in the non-alcoholic beer market segmented by category, at a CAGR of 10.40% during 2024-2029.

North America was the largest region in the non-alcoholic beer market, accounting for 29.32% or $6.43 billion of the total in 2024. It was followed by Western Europe, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the non-alcoholic beer market will be Asia Pacific and South America where growth will be at CAGRs of 11.87% and 11.13% respectively. These will be followed by Middle East and Eastern Europe where the markets are expected to grow at CAGRs of 9.72% and 9.71% respectively.

The top opportunities in the non-alcoholic beer market segmented by product will arise in the alcohol-free segment, which will gain $11.38 billion of global annual sales by 2029. The top opportunities in the non-alcoholic beer market segmented by material will arise in the malted grains segment, which will gain $8.45 billion of global annual sales by 2029. The top opportunities in the non-alcoholic beer market segmented by distribution channel will arise in the store-based segment, which will gain $9.59 billion of global annual sales by 2029. The top opportunities in the non-alcoholic beer market segmented by category will arise in the flavored segment, which will gain $8.39 billion of global annual sales by 2029. The non-alcoholic beer market size will gain the most in the USA at $3.06 billion.

Market-trend-based strategies for the non-alcoholic beer market include focus on developing innovative products to cater to the growing demand for healthier and low-alcohol beverages, focus on increasingly innovating with unique product offerings, such as non-alcoholic beer for dogs, focus on upgrading technology to meet the growing consumer demand for healthier, alcohol-free alternatives while improving the overall drinking experience, focus on investing in the development of innovative products, including unique aroma compounds, to enhance flavor profiles and improve the sensory experience, focus on developing innovative products to meet the rising consumer demand for healthier and low-alcohol alternatives, focus on product innovation, such as the development of caffeine-infused non-alcoholic radlers, to cater to changing consumer preferences and focus on innovation by developing unique, flavorful non-alcoholic beer options to cater to meet the regulatory requirements.

Player-adopted strategies in the non-alcoholic beer market include focus on increasing investment to expands its non-alcoholic and low-alcoholic beer portfolio, focus on product launches to tap into new markets for its alcohol-free beer, focus on merger and acquisition activity to expand its global footprint and diversify its product offerings, and focus on expanding its footprint in the non-alcoholic beer market by increasing investment in this growing segment.

To take advantage of the opportunities, the analyst recommends the non-alcoholic beer companies to focus on consumer-centric innovation to drive market competitiveness, focus on diversifying product portfolios to capture niche consumer segments, focus on flavor innovation to enhance consumer experience and drive growth, focus on diversified product offerings to capture wellness-oriented consumers, focus on functional beverages to expand market reach and appeal to active consumers, focus on alcohol-free beer to drive growth, focus on hops to capture market growth, expand in emerging markets, focus on technology upgrades to enhance production and meet consumer demand, focus on regulatory-driven innovation to expand distribution channels, focus on non-store-based channels for growth, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and focus on engaging consumer preferences and influencing behavior.

Major Market Trends

• Innovative Product Development and Consumer-Centric Offerings
• Non-Alcoholic Beer for Dogs Innovating The Pet Beverage Market
• Investment in Technology to Enhance Production of No-Alcohol and Low-Alcohol Beers
• Innovation in Non-Alcoholic Beer Sustainable Aroma Development to Enhance Flavor Profiles
• New Non-Alcoholic Beverage Combines Beer and Fruit-Infused Seltzer
• Launch of Caffeine Infused Non-Alcoholic Radlers
• Launch of Innovative Non-Alcoholic Beer in Restaurants Signals Industry Shift

Key Mergers and Acquisitions

• United Spirits Acquired V9 Beverages
• Carlsberg Group Acquired Waterloo Brewing
• Ghodawat Consumer Acquired Coolberg
• Keurig Dr Pepper Acquired Athletic Brewing Company
• Asahi Group Acquired Octopi Brewing