Low Alcohol Beer Market Research Report By Alcohol Content (0.5-1.2% ABV, 1.3-3.5% ABV, 3.6-5% ABV), By Packaging (Bottles, Cans, Draught), By Flavor Profile (Hoppy, Lager, Stout, Fruit-flavored), By Target Audience (Millennials and Gen Z, Health-conscious consumers, Designated drivers), By Distribution Channel (On-premise, Off-premise (retail & e-commerce)) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Low Alcohol Beer Market Overview:

As per MRFR analysis, the Low Alcohol Beer Market Size was estimated at 15.77 (USD Billion) in 2022. The Low Alcohol Beer Market Industry is expected to grow from 16.73(USD Billion) in 2023 to 28.5 (USD Billion) by 2032. The Low Alcohol Beer Market CAGR (growth rate) is expected to be around 6.1% during the forecast period (2024 - 2032).

Key Low Alcohol Beer Market Trends Highlighted

The growth of the Low alcohol beer market is rapid due to increasing health consciousness among consumers and the rise of craft beers. Consumers are increasingly interested in healthier options, which is why these low-calorie alcoholic beverages are increasingly in demand if they can be complemented by taste but are not very high in ABV. Recently it has been noticed the expansion of the market core in other fields of construction, new flavors and types of low alcohol beers such as session IPA, pale ale, nt which include session ales, etc. 

From this standpoint, the rising distribution of low-alcohol beer in off and on-premise channels best positions these brands for consumers. As the industry undergoes changes, there is room for the advancement of looking for different flavors and brewing methods, as well as the production of low alcohol beer that meets certain needs and preferences.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Low Alcohol Beer Market Drivers

Rising Health Consciousness

There is a growing trend among consumers to adopt a healthier lifestyle. People are a lot more health-conscious these days and it shows in people trying to find healthier versions of the typical alcoholic beverages. Compared to normal beer, low alcohol beer has lower calories and sugar and comes with a lower alcohol content. This is why demand for low alcohol beer exceeds demand for normal beer. It is widely expected that this trend will continue and that it will drive growth in the Low Alcohol Beer Market Industry in the years to come.

Growing Popularity of Craft Beer

The craft beer movement has gained significant traction in recent years, and this trend is expected to continue in the future. Craft breweries are experimenting with new and innovative flavors, including low alcohol beers. This has helped to expand the appeal of low alcohol beer beyond its traditional consumer base and is expected to drive growth in the Low Alcohol Beer Market Industry.

Government Regulations and Taxation

Government regulations and taxation policies are greatly influencing the growth prospects of the Low Alcohol Beer Market Industry. For example, in many countries, low alcohol beer is taxed at a lower rate than normal beer. As a result, companies are likely to attract a wider customer base for these products. In addition, some governments have enacted regulations requiring companies to engage in the production and sale of these products. These factors are likely to facilitate the growth prospects of the Low Alcohol Beer Market Industry.

Low Alcohol Beer Market Segment Insights:

Low Alcohol Beer Market Alcohol Content Insights

The alcohol content segment has a powerful influence on the Global Low Alcohol Beer Market. The market is segmented according to the level of alcohol content, which is, in turn, divided into three segments: 0.5-1.2%, 1.3-3.5%, and 3.6-5%. Each of these segments has had a significant effect on the market and shaped it to a certain degree. The first segment has a considerable effect on the Global Low Alcohol Beer Market, as it takes a significant share of the revenue. 

The market for 0.5-1.2% beer is driven by the growing demand for low- and no-alcohol beverages as people around the world become more concerned about their health and search for ways to reduce the intake of alcohol.Another factor contributing to the market segment growth is the expanding range of low- or no-alcohol beers of different kinds and flavors. The second segment is also important for the Low Alcohol Beer Market as it remains one of the leaders in the market. 

The segment is driven by the popularization of craft beers and the expansion of the range of established market players. Finally, the 3.6-5% ABV segment has shown growing demand, as, again, people remain fond of beer drinking but try to moderate the amount of alcohol. The segment benefits from the revival of craft brewing when the market players experiment with flavors and develop beers that can be consumed in larger amounts in one sitting.All in all, the alcohol content segment of the Low Alcohol Beer Market is diversified and offers various opportunities for the industry.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Low Alcohol Beer Market Packaging Insights

The Low Alcohol Beer Market is segmented by Packaging, including Bottles, Cans, and Draught. By packaging, the Cans segment is estimated to hold the largest market share in 2023, owing to several factors such as convenience, portability, and recyclability. Cans are easier to transport and store compared to bottles, making them a preferred choice for consumers. 

The Bottles segment is expected to witness a steady growth rate during the forecast period due to the premiumization trend in the low alcohol beer market. Bottles are perceived as a more premium option and are often used for special occasions or as gifts.The Draught segment is expected to grow at a moderate pace, driven by the increasing popularity of craft beers and the growing number of taprooms and brewpubs.

Low Alcohol Beer Market Flavor Profile Insights

The flavor profile segment plays a crucial role in shaping the Low Alcohol Beer Market revenue and growth trajectory. Among the various flavor profiles available, 'Hoppy' captured the largest market share in 2023, owing to its distinct bitterness and aromatic qualities. This flavor profile is expected to maintain its dominance throughout the forecast period, driven by the growing popularity of India Pale Ales (IPAs) and other hoppy beer styles. 'Lager,' with its crisp and refreshing taste, is another significant flavor profile in the Low Alcohol Beer Market segmentation. It is anticipated to witness steady growth over the coming years, particularly in regions with warm climates. 'Stout', known for its dark color and roasted malt flavors, holds a niche market share. 

However, its popularity is expected to increase gradually, especially among craft beer enthusiasts. 'Fruit-flavored' low-alcohol beers are gaining traction, driven by the demand for refreshing and flavorful beverages. These beers incorporate various fruit flavors, such as citrus, berry, and tropical fruits, to cater to consumer preferences for unique taste experiences.

Low Alcohol Beer Market Target Audience Insights

The target audience for the Low Alcohol Beer Market can be segmented into Millennials and Gen Z, health-conscious consumers, and designated drivers. Millennials and Gen Z are a key target audience for low alcohol beer, as they are more likely to be health-conscious and prefer beverages with lower alcohol content. This segment is expected to drive market growth in the coming years as they increasingly seek out healthier alternatives to traditional beer. Health-conscious consumers are another important target audience for low alcohol beer. This segment is growing as consumers become more aware of the health risks associated with excessive alcohol consumption. 

Low alcohol beer provides a healthier alternative to traditional beer, with fewer calories and less alcohol content. Designated drivers are also a key target audience for low alcohol beer. This segment is growing as more and more people choose to drink responsibly. This growth is being driven by the increasing popularity of low alcohol beer among Millennials and Gen Z, health-conscious consumers, and designated drivers.

Low Alcohol Beer Market Distribution Channel Insights

The Low Alcohol Beer Market is segmented by Distribution Channel into On-premise and Off-premise (retail e-commerce). Off-premise distribution channels accounted for the largest share of the Low Alcohol Beer Market in 2023, owing to the convenience and accessibility of these channels. 

The growth of e-commerce and the increasing popularity of online grocery shopping are expected to drive the growth of the Off-premise segment in the coming years. On-premise distribution channels, such as bars, restaurants, and pubs, are expected to witness steady growth, driven by the increasing popularity of craft beers and the growing trend of socializing in public spaces.The Low Alcohol Beer Market is expected to reach a valuation of USD 28.5 billion by 2032, exhibiting a CAGR of 6.1% during the forecast period 2024-2032.

Low Alcohol Beer Market Regional Insights

The Low Alcohol Beer Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023, accounting for 35.4% of the global revenue. The region's mature beer market, rising health consciousness, and growing demand for low-calorie alcoholic beverages are driving growth. Europe is the second-largest market, with a market share of 28.1% in 2023. 

The region's strong beer culture, increasing focus on responsible drinking, and growing popularity of craft beers are contributing to market growth.APAC is expected to witness the fastest growth during the forecast period, with a CAGR of 7.3%. The region's growing middle class, increasing disposable income, and rising awareness of low alcohol beers are fueling market expansion. South America and MEA are expected to have a moderate growth rate during the forecast period, with CAGRs of 5.5% and 4.7%, respectively. The growing popularity of low alcohol beers among health-conscious consumers and the increasing availability of these products in local markets are driving growth in these regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Low Alcohol Beer Market Key Players And Competitive Insights:

Major players in the Low Alcohol Beer Market industry are constantly trying to outdo each other in terms of innovation, quality, and marketing strategies. Leading Low Alcohol Beer Market players are investing heavily in research and development to create new and improved products that meet the evolving needs of consumers. The Low Alcohol Beer Market development is being driven by the growing popularity of low-calorie and healthier alcoholic beverages. Low Alcohol Beer Market Competitive Landscape is expected to remain fiercely competitive in the years to come.Heineken N.V. is a leading player in the Low Alcohol Beer Market industry. 

The company offers a wide range of low alcohol beers, including Heineken 0.0, Amstel Radler, and Desperados Red. Heineken N.V. has a strong global distribution network and is well-positioned to capitalize on the growing demand for low alcohol beers. The company is also investing heavily in marketing and advertising to promote its products.

Anheuser-Busch InBev is another major player in the Low Alcohol Beer Market industry. The company offers a variety of low alcohol beers, including Budweiser Prohibition Brew, Stella Artois Cidre, and Michelob Ultra Pure Gold. Anheuser-Busch InBev has a strong global presence and is well-positioned to meet the growing demand for low alcohol beers. The company is also investing heavily in research and development to create new and improved products.

Key Companies in the Low Alcohol Beer Market Include:

• The Boston Beer Company, Inc


• Heineken


• Lagunitas Brewing Company


• Kirin Holdings Company, Limited


• Sierra Nevada Brewing Co


• New Belgium Brewing


• AnheuserBusch InBev


• Deschutes Brewery


• Sapporo Holdings Ltd


• Carlsberg


• Suntory Holdings Limited


• Tsingtao Brewery Group Co., Ltd.


• Diageo


• Asahi Group Holdings, Ltd.


• Molson Coors Beverage Company

Low Alcohol Beer Market Industry Developments

The Low Alcohol Beer Market is projected to reach USD 28.5 billion by 2032, exhibiting a CAGR of 6.1% during the forecast period (2024-2032). The rising health consciousness among consumers and the growing popularity of low-calorie and low-sugar beverages are driving the market growth.

Additionally, the increasing demand for premium and craft low alcohol beers is further fueling market expansion. Key market players are focusing on product innovation and strategic partnerships to cater to evolving consumer preferences. Recent developments include the launch of new low alcohol beer variants with unique flavors and the expansion of distribution channels through partnerships with retailers and e-commerce platforms. The market is expected to witness continued growth in the coming years, driven by the increasing demand for healthier and more convenient beverage options.

Low Alcohol Beer Market Segmentation Insights

• Low Alcohol Beer Market Alcohol Content Outlook
  
  
  
  • 5-1.2% ABV
  
  
  • 3-3.5% ABV
  
  
  • 6-5% ABV
  
  
  
  


• Low Alcohol Beer Market Packaging Outlook
  
  
  
  • Bottles
  
  
  • Cans
  
  
  • Draught
  
  
  
  


• Low Alcohol Beer Market Flavor Profile Outlook
  
  
  
  • Hoppy
  
  
  • Lager
  
  
  • Stout
  
  
  • Fruit-flavored
  
  
  
  


• Low Alcohol Beer Market Target Audience Outlook
  
  
  
  • Millennials and Gen Z
  
  
  • Health-conscious consumers
  
  
  • Designated drivers
  
  
  
  


• Low Alcohol Beer Market Distribution Channel Outlook
  
  
  
  • On-premise
  
  
  • Off-premise (retail e-commerce)
  
  
  
  


• Low Alcohol Beer Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa