Alcohol Who? Non-Alcoholic Beer Market to Hit $29 Billion by 2026

By Jemima McEvoy Sunday, January 17, 2021

Non-alcohol beer makers have really mastered their craft. The market should be seeing significant growth in the next five years, according to a new report from Global Market Insights. Growing at an average of 7.5% through 2026, the market of non-alcoholic beer is expected to surpass $29 billion by 2026. Here’s everything you need to know about the market, the businesses booming within it, and why it’s projected to see a surge in the next few years.

Market Profile

There are many reasons why companies making non-alcoholic beers — beverages that look and taste like beer but include either 0.0% or 0.5% alcohol — have the momentum for growth.

Changing lifestyles, cultures, and religious restrictions have increased awareness about the health benefits of alcohol, resulting in a rush of people looking for alternatives. Furthermore, the Asia Pacific region has become much more open to these products due to the improved adoption of alcohol-beer products.

“Increasing prevalence of digestive disorders along with a rapid increase in alcohol allergy and weak immune system cases is creating a niche market for alcohol-free products,” explains the report.

The rising per-capita incomes in emerging economies has also opened up opportunities for this market in recent years. According to the report, these new demographics led to 895 million liters of non-alcoholic beer consumed from liquor stores in 2019.

Reasons for Growth

Building off this strengthening foundation, the non-alcoholic beer industry is expected to keep up its progress over the next five years for the reasons mentioned above, as well many others.

Intra-market innovation is set to play a major role in this over 7% average year-over-year growth, explains the report. There is an increasing number of craft breweries, and many of them are focusing heavily on marketing and advertisements.

The market is currently populated by a mix of mainstream brands, which offer non-alcoholic alternatives, as well as those that focus solely on zero alcohol beverages. Leading names include Heineken, BrewDog, Clausthaler, Mikkeller Energibajer, Brooklyn Brewery, and Beck’s.

Interestingly enough, an increase in yeast quality is also expected to drive business sales in the near future. Yeast plays an essential role in the production of beer, which has been recognized by many manufacturers who are now experimenting with it to shift the flavor, texture, and aroma of their products.

Final Takeaways

Reaching nearly $30 million will be a big step, particularly when considering that the alcoholic beer market is worth roughly $120 billion (as of 2018). It is definitely worth noting and considering the business opportunities involved in this growing industry, which is set to reach around 25% of the juggernaut alcoholic market in just a few years.

About the Author


Headshot for author Jemima McEvoy

Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.

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