The demand for an alternative to alcoholic beverages has given the nonalcoholic sector an opportunity to grow. Nonalcoholic drinks are the ones that do not contain alcohol but are widely used as refreshments. The appeal of nonalcoholic beverages is that almost everyone can drink them. For example, even if alcoholic beverages are prohibited for pregnant women and kids, nonalcoholic beverages hold no such restraints. Nonalcoholic beverages, therefore, have a vast market. Nonalcoholic beverages pull in a lot of revenue because they are the go-to alternative for many. Among the nonalcoholic beverages, nonalcoholic beer is one product that is in wide circulation.
Non alcoholic beer market revenue has been growing steadily over the years. Nonalcoholic beer gives the taste of beer to people, but it does not have the alcohol content. Nonalcoholic beer is thus an alternative for people who are beer lovers but need to quit alcohol. People prefer low-volume alcohol drinks, and nonalcoholic beer is one of those drinks. Nonalcoholic beer is formed by the fermentation of malt, water, hop, and sometimes yeast. The creation process of nonalcoholic beer is controlled for a set temperature and pH. Without the set temperature and pH, the whole objective of the process is defeated.
Any form of alcohol formed in the fermentation process is removed, and nonalcoholic beer is created. The removal of alcohol from the drink happens through vacuum distillation or reverse osmosis. The process of alcohol removal differs in different breweries. The definition of nonalcoholic beer also differs in different countries. This definition depends on the percentage of alcohol that is permissible in nonalcoholic drinks in a certain country. However, this percentage of permissible alcohol is always negligible. Thus, nonalcoholic beer does not produce alcohol-like effects. Because of the safety of nonalcoholic beer, the non alcoholic beer market size will reach a valuation of 9.62 billion in the future. The growth rate of the non alcoholic beer market size projects at a healthy rate of 8.28 percent in the forecast period.
COVID 19 analysis
Like all other segments of the industry, the non alcoholic beer market trends also suffered under the pandemic. The COVID 19 pandemic also reduced the non alcoholic beer market revenue. But according to the non alcoholic beer market trends, the growth of the nonalcoholic beer market was better than the alcoholic beer segment. Firstly, this was because of people staying indoors during the pandemic. Moreover, as people adopted at-home celebrations on occasions, the non alcoholic beer market revenue enhanced.
Secondly, the work-from-home life meant that people could not afford a hangover and, thus, prefer nonalcoholic beer. Thus, the non alcoholic beer market trends became positive during the pandemic. Although the sale was not at par with the market share before the pandemic, the market statistics look hopeful. The non alcoholic beer market trends suggest that non alcoholic beer does not take away from the experience of drinking.
On the other hand, it adds to the experience minus the effect of alcohol. The non alcoholic beer market share was promising in the pandemic phase, and non alcoholic beer market statistics suggest that the non alcoholic beer market share will only increase in the future.
Key Drivers of the market
The adoption of a non alcoholic lifestyle in Asia Pacific countries like India and Japan is a key driver of the non alcoholic beer market growth. Secondly, the light favor of non alcoholic beer and its low alcohol volume makes it popular among women and children. The religious beliefs of certain communities are also a major driver of the non alcoholic beer market. Many people believe that drinking alcohol is against their religion. Thus, these people are the major customers of the non alcoholic beer market.
Significant opportunities for the market
Today, drinking non alcoholic beverages is a status symbol. Thus, people who are conscious of their social status contribute majorly to the market revenue. Targeting the rich and high-status people is an opportunity for the non alcoholic beer market. Secondly, another golden opportunity for the market is the adoption of a healthier lifestyle among people. A healthier lifestyle means a low alcohol lifestyle for people. This trend can be a window of growth for the non alcoholic beer market. The ease of availability for non alcoholic beer is also an opportunity for non alcoholic beer producers to expand.
There are many restraints existing in the non alcoholic beer market. These restraints need to be addressed for further growth of the market. The restraints are the lack of experimentation and new flavors in the market. Another restraint is the lack of appeal to hard-core alcohol drinkers. These restraints are being addressed by the key players of the industry. The absence of new flavors is something that the key players can solve.
Market growth challenges
There are many growth challenges that the non alcoholic beer market faces today. For example, it faces direct competition from the alcoholic beer segment. It also faces competition from the health drink segment, like ready-to-drink smoothie drinks. If one person is going towards a healthy lifestyle, he prefers health drinks more than non alcoholic drinks. However, these challenges are countered by making the non alcoholic beer more flavorsome like beer. Thus, the non alcoholic beer market captures the customers who are not yet fully ready to leave alcoholic drinks behind.
Cumulative growth Analysis
Overall, the non alcoholic beer market has strong prospects of growth in the forecast period. The non alcoholic beer market will clock in a growth rate of 8.28 percent in the forecast period. This steady growth rate indicates that the market will see steady revenue and equivalent growth trends across all the segments. The non alcoholic beer segment will have profits during the forecast period. The real trends in the forecast heavily depend on the key players of the market.
The non alcoholic beer market divides into different segments based on different criteria. These major criteria are product type, distribution channel, and category of drink.
Based on the category of drinks, the non alcoholic beer divides into plain and flavored.
By Distribution channels
The distribution channel segment further divides into store-based and non-store-based channels. The store-based channels further divide into hypermarkets, supermarkets, and specialty stores.
By product type
On the basis of product type, the non alcoholic beer market divides into alcohol-free drinks or 0.5 percent alcohol in the drink.
The non alcoholic beer market disperses over different regions of the world. The major regional markets for the industry are North America, Asia Pacific, and Europe. The North American region dominates the non alcoholic beer market with 36.70 percent of the total revenue share. The dominance will stay over the forecast period too. On the other hand, the European region is the fastest growing market by region.
There are certain key players of the non alcoholic beer market who contribute the majority of revenue share for the market. The key players of the market are as follows –
The key players of the non alcoholic beer market contribute majorly to the growth of the market. Moreover, they meet the demand with suitable supply and keep the industry running.\
The key players of the non alcoholic beer market take yup research and development from time to time. Therefore, many developments emerge over a timeline. For example,
This global non alcoholic beer market report contains the following sections
This comprehensive report emphasizes the future growth trends of the non alcoholic beer market. Secondly, it discusses the current market scenario and discusses future projections of the market. The report also throws light on the different segments of the market. Thirdly, it also analyses the market regionally to predict growth trends. The report also discusses the key players and the competitive landscape in detail. Moreover, the report also covers the recent developments in the market.
Frequently Asked Questions (FAQ) :
The North American region will generate the maximum revenue by the end of 2024. This growth trend further enhances by the adoption of stricter laws against alcohol use in the USA.
The overall growth rate of the nonalcoholic beer market in the forecast period is 8.28 percent.
The alcohol-free type of non alcoholic beer will drive the market demand for the forecast period.