Exploring Non-Alcoholic Beer
While Americans drank more alcohol during the global pandemic and continue to enjoy their favorite alcoholic drinks, increasing consumer health concerns also accelerated, boosting an avoidance of alcoholic beverages, including movements such as “sober curious” gaining popularity. In response, demand and products in the non-alcoholic category continue to grow, whether in spirits, mocktails, beer, or wine.
Sobering Trends
Now, it is easier than ever to enjoy sober socializing, on or off-premise.
The existing “Dry January” trend continues to grow, with CGA Strategy recording a 2022 total of US $295 million on-premise non-alcoholic spirit, mocktail, and beer sales value increase. In addition, the number of Dry January non-alcoholic beer drinkers increased from five percent in 2019 to 29% in 2022, with interest in the segment jumping from 12% to 16% year on year.
In addition, supplementing a lower alcoholic beverage usage with non-alcoholic options is also increasing, showing enhanced interest in healthier or sober lifestyles. Compared to 24 months ago, on-premise location non-alcoholic consumption has jumped from 61% to 78%, thanks to the availability of credible and appealing options.
A key player in this non-alcoholic space and boosting the overall non-alcoholic category is low and no-alcohol beer, according to a recent CGA Strategy on-premise analysis1, with low-alcohol variants representing an entry point. Their research suggests the resilient segment is one of the fastest growing, with a 96% increase in 2021. According to insights company ResearchandMarkets.com, the 2021 global non-alcoholic beer market was worth US$16.65 billion and is forecast to grow by a compound annual growth rate (CAGR) of 8.7% in 2025 to US $23.27 billion2.
This influential trend represents a significant opportunity for manufacturers to deliver healthy, more natural low or non-alcoholic variants, expanding their user base and market share.
An Open Invitation to Succeed
CGA Strategy’s findings highlighted opportunities for new entrants into the category.
With the low and no-alcohol beer market currently lacking competition – the top three craft brew/distillery brands comprise 70% of the share, now is the time for established and new manufacturers to leverage this gap, win over available capital and cement their position in this exciting sub-category.
Examples of craft brew/ distilleries brands taking advantage of this low-hanging funding are brands Partake and Athletic Brewing, securing US $4 million and US $50 million valued contracts, respectively. At the same time, brands Dogfish Head and Ceria have successfully launched non-alcoholic and THC-infused beers. Established international brewers, too, have increased their non-alcoholic portfolios, including Budweiser, Guinness, Peroni, Busch, and Heineken.
Ride the Alcohol-Free Tidal Wave With Advanced Biotech’s Natural Distillates
Advanced Biotech offers an extensive range of pure, natural EU-certified ingredients to help your non-alcoholic variant taste as complex and feel as good and satisfying as the real thing. Discover distillates, including beer, wine, and spirits, providing taste, tang, mouthfeel, and a pleasurable throat catch.
These distilled flavor isolates yield fuller, more concentrated, more layered flavor notes than the source product, are all-natural, and are perfect for liquid and beverage applications. In addition, simplicity and purity make distillates easier and more efficient to incorporate, leading to enhanced and superior quality.
Advanced Biotech’s distillates collection for craft brewers & distillers includes molecules to enhance non-alcoholic product taste and aroma, including espresso, molasses, honey, cocoa, black pepper, hops, and hemp.
Order today from our comprehensive collection or contact us to find your ideal flavor profile.