Consumers are shifting towards alcohol-free beer, providing an opportunity for growth in the industry, according to Justin Kissinger, CEO of the World Brewing Alliance.
Kissinger stated that beer manufacturers are embracing the nonalcoholic trend to expand their consumer base and introduce new styles and varieties to the market.
He predicted that nonalcoholic beer production could reach 56 to 58 million liters in the next five years, with a projected market value of $5.5 billion by 2034, growing at a rate of 7.1% annually, as reported by Future Market Insights.
Kissinger highlighted the success of nonalcoholic beers like Heineken 0.0% and Athletic Brewing’s offerings in attracting more consumers to the category. He mentioned Athletic Brewing’s recent funding round, where the company raised $50 million from investors.
Member companies of the World Brewing Alliance, including AB InBev, Molson Coors, Heineken, and Carlsberg, are focused on expanding their product offerings to cater to different consumer occasions.
Major brewers are also diversifying into non-beer categories, with Molson Coors investing in Fever Tree cocktail mixers and Zoa energy drinks, while AB InBev is set to launch an energy drink line in collaboration with Dana White.
Despite the growth in nonalcoholic beers, the craft beer industry is facing challenges due to oversaturation and changing consumer habits. Local breweries continue to drive the craft scene, with 86% of their economic value generated locally.
Kissinger noted that the success of the American craft beer industry has inspired other countries to develop their own local brewery scenes.
While the craft beer segment may experience a slowdown in growth, Kissinger remains optimistic about its future opportunities and role in the beer industry.