![Demand for nonalcoholic beer is hitting a fever pitch. Booze companies are leaning in. (1) Demand for nonalcoholic beer is hitting a fever pitch. Booze companies are leaning in. (1)](https://i0.wp.com/cdn.mos.cms.futurecdn.net/gKiUFELxB8Fqz6MGTBKCMR-415-80.jpg)
Athletic Brewing Company holds over 19% market share of the nonalcoholic beer vertical
(Image credit: Athletic Brewing Company)
By Justin Klawans, The Week US
published
inwhy everyone's talking about
People who want to indulge in a drink with friends without the negative effects of alcohol are increasingly turning to a popular alternative: nonalcoholic beer. These brews have been on the market for years, but demand seems to have reached a boiling point. And the companies that manufacture nonalcoholic beers are starting to take notice.
How big is the nonalcoholic beer market and who are the major players in the industry? Perhaps the biggest question of all: Why is demand booming now?
What is nonalcoholic beer?
Nonalcoholic beers are "simply beers that have either had the alcohol removed or have been brewed to contain less alcohol than the legal limit," said Everyday Health. A beer can claim to be nonalcoholic as long as it "contains less than 0.5% alcohol by volume," according to guidelines from the Food and Drug Administration (FDA).
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![Demand for nonalcoholic beer is hitting a fever pitch. Booze companies are leaning in. (3) Demand for nonalcoholic beer is hitting a fever pitch. Booze companies are leaning in. (3)](https://i0.wp.com/cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
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These products are a "great way for individuals to reduce their intake of alcohol while still being able to enjoy the taste and experience of a beer," Kerry Benson, MS, RD, said to Everyday Health. By removing the alcohol, the consumer is "taking out a compound that is toxic and that increases the risk ofchronic disease."
How big is the nonalcoholic beer market?
Much bigger than the average consumer may think. Nonalcoholic beer sales worldwide are slated to reach $37 billion in 2024, according to Statista. This includes $18.9 billion in revenue generated from supermarkets and convenience stores, and $18.1 billion from restaurants, bars and retail establishments.
Most of the supermarket and convenience store revenue is generated in the United States, Statista said, with an estimated total of $4.2 billion out of the $18.9 billion being sold in the U.S.
Why is nonalcoholic beer booming now?
Part of the reason seems to be generational shifts that are causing drinking-age crowds to be more health-conscious. There is an "upswing as far as Generation Z. I think they're very mindful of what they intake, and I don't think that the obligatory alcoholic drink before your dinner every night is the reality of today," Steve Fox, owner of the Bread & Circuses Bistro & Bar in Maryland, said to WMAR-TV Baltimore.
This shift seems to be backed by scientific data as well. In 2018, 28% of college students reported abstaining from alcohol, according to Cleveland Clinic data cited by WMAR. By comparison, in 2002 only 20% said they were doing the same. Other surveys draw similar conclusions. A January 2023 survey from NCSolutions found that 41% of Americans were "planning to drink less alcohol in 2024." Additionally, 23% of Americans did not consume any alcohol in 2023, while more than 1 in 3 said they tried a nonalcoholic drink that year.
With this uptick in nonalcoholic beer sales comes lucrative deals for companies. Athletic Brewing Company, the leading manufacturer of nonalcoholic beer in the United States, recently "closed a$50 millionequity financing round," the company said in a press release, boosting its valuation to about $800 million. The company is currently among the most popular brands of nonalcoholic beers, as Athletic already "holds over 19% market share within nonalcoholic beer and is driving 32% of total nonalcoholic beer category growth." Athletic will use this investment to "increase production capacity and expand its offerings at global retailers" as demand for nonalcoholic beer grows overseas, said CNBC.
Many of the most iconic conventional beer brands are venturing into the space too. Budweiser, for example, offers Budweiser Zero, a nonalcoholic beer "made for those who want to cut back on alcohol without missing out on the full flavor and refreshment of Budweiser." Coors, Heineken, Samuel Adams and Guinness are other big-name beers that offer nonalcoholic varieties.
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Justin Klawans, The Week US
Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other Hollywood news. Justin has also freelanced for outlets including Collider and United Press International.
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