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As reported by Craft Brewing Business, in recent years, the non-alcoholic (NA) beer market has witnessed a remarkable surge, signifying a pivotal change in consumer preferences and industry dynamics. This shift reflects a broader societal trend towards health and wellness, coupled with evolving consumer tastes. The emergence of NA beer is transforming the beverage industry, presenting both opportunities and challenges for breweries, marketers and retailers alike.

Non-alcoholic beer, typically containing less than 0.5% alcohol by volume, has transcended its niche status to become a mainstream option. Initially, NA beers were primarily targeted at consumers who abstained from alcohol for health, religious or personal reasons. Today, the demographic is broader, encompassing health-conscious individuals, athletes and those participating in the sober curious movement. Dry January 2024 showcased this fact. Let’s take a look at what we learned.

Dry January and non-alcoholic beer stats

A recent poll conducted by Morning Consult, commissioned by the Beer Institute, noted that more than half (58 percent) of Americans participating in Dry January are choosing low- and no-alcohol beer to help them achieve their goals. Key highlights from the poll:

• Of those participating in Dry January, 58 percent feel that new options like low- and no-alcohol beer help them moderate their consumption.
• Further, 58 percent say that low- and no-alcohol beer is a good alternative for people who are looking to moderate their alcohol consumption long-term.
• 55 percent say that the quality of non-alcoholic beer has improved over the past few years.

From the press release:

“As many Americans increase their focus on moderate consumption, a growing majority of them are using low- and no-alcohol beer to help them hit their goals,” said Brian Crawford, president and CEO of the Beer Institute. “Brewers are committed to meeting this demand, and as the beverage of moderation, beer’s dominance in the low- and no-alcohol space reflects decades of investment by brewers and an industry commitment to encourage responsible consumption. The beer industry is enabling consumers to enjoy their favorite beers without sacrificing quality.”

According to that same Beer Institute report, the non-alcoholic drink market now exceeds half a billion dollars a year — up 31 percent in the past year. Craft beer, known for its emphasis on flavor, quality and artisanal brewing techniques, has a real opportunity to serve the NA market with great products. Athletic Brewing is proof of the potential. The brand, which exclusively brews NA beer, was the 13th largest craft brewer in the United States in 2022 by sales volume (2023 numbers are not out yet), according to the Brewers Association top 50 list.

According to a new report on American drinking habits from data and advertising experts NCSolutions, Americans are continuing to cut back on drinking alcohol and seeking alternative beverages. In fact, 41 percent of Americans are planning on drinking less in 2024 — this increases to 61 percent among Gen Z — says the report. From that same report:

Corresponding with Dry January, NCSolutions purchase data shows a major decline in alcohol sales from December 2022 to January 2023. Alcohol purchases dropped 24% from one month to the next. It makes sense, especially with more Americans — 22% — taking part in Dry January 2024, up 10 percentage points from 2023. It’s not only alcoholic drinks that are being left on the shelf for the time being. Soft drink sales were down 11% in January 2023 compared to December 2022.

Of course, it’s not just NA beer. There is a growing number of category competitors vying for attention with non-alcoholic variants from NA wine to NA whiskey. From the report:

Mocktails are expected to be a major trend for 2024, as these alcohol-free beverage concoctions are the number one nonalcoholic drink Americans want to try. Others are also interested in THC and CBD-infused drinks. The main reasons people are drawn to these types of alcohol-free drinks are because they want to see what it tastes like, consider it a healthier alternative to alcohol, and like the look of it.

Other interesting data from the report:

• 1 in 3 Americans tried a nonalcoholic beverage in 2023
• Top drinks Americans want to try in 2024: Mocktails, THC/CBD-infused beverages an non-alcoholic beer
• 24 percent of Gen Z have tried a nonalcoholic beverage because it was endorsed by an influencer; 34 percent will try a product marketed towards the sober-curious lifestyle
• 24 percent of Americans did not drink alcohol at all in 2023

Non-alcoholic is not a fad

The NA beer sector is more than a passing movement. It represents a fundamental shift in consumer preferences and lifestyle choices. For the craft beer industry, this movement offers an opportunity to innovate and reach a broader audience. However, it also requires a thoughtful approach to ensure that the quality and integrity of the product are maintained. As the industry adapts to these changes, we can expect to see a diverse range of high-quality NA craft beers that cater to this growing segment of the market. By embracing initiatives like Dry January and the sober curious movement, the craft beer industry is not only responding to a market demand but also promoting a more inclusive and health-conscious approach to social drinking. Sounds like a win-win.

Attribution: Article Retrieved from Craft Brewing Business, written By Keith Gribbins .

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