Non-Alcoholic ​Beer Sales surge, Set to Overtake Ale

‍ Updated May 31, ‌2025

Global demand for⁤ non-alcoholic beer is soaring, with projections indicating it will surpass ale in volume ‍to ​become the second-largest⁣ beer category worldwide this year, according ‍to IWSR.

While the overall beer‍ market ​experienced ​a roughly 1%​ decline in volume in 2024, non-alcoholic​ beer ⁤surged by 9% globally,‌ IWSR reported. This growth trend ​began accelerating in⁤ 2018 and has consistently outperformed the broader beer market since.

IWSR⁢ forecasts an⁢ annual⁣ growth rate of 8%​ for ​non-alcoholic beer through 2029. In contrast, ale volume is expected​ to decrease by 2%​ annually during the same period.

Despite its rapid growth, non-alcoholic beer currently holds only about 2% of the global beer market share.Lager remains the dominant category,commanding 92% of the market and continuing to grow,albeit at a⁢ slower pace.

The ⁢rising popularity of non-alcoholic beer is attributed to​ an increasing number ​of‌ consumers reducing⁤ their alcohol consumption. This trend has prompted major brewers ‌to⁣ invest heavily in zero-proof alternatives. Younger generations,notably‌ Gen Z and millennials,are at the forefront of⁤ this shift,embracing ‌terms like “sober ‍curious” and “damp lifestyle” to‍ describe their approach to moderation.

Improved taste and quality have also contributed to the⁢ category’s growth. Major brands like Guinness (Diageo), Heineken, and Budweiser (Anheuser-Busch InBev) have all ⁣introduced non-alcoholic versions in ⁢recent years.

In 2023, ⁤worldwide retail sales of non-alcoholic beer exceeded $17 billion, according to Bernstein. Germany, Spain, and Japan led in consumption, with the U.S. ​ranking‍ sixth in ⁣sales.

Athletic Brewing, founded in 2018, has⁣ emerged as the top-selling non-alcoholic beer brand in the U.S., holding‍ 17% of the market volume ​share.‌ This ​surpasses Bud Zero (AB InBev) and Heineken 0.0. In⁤ 2024, the company was reportedly ⁢valued at‌ approximately $800 million in its latest funding round.

Even the non-alcoholic‌ sector has seen celebrity involvement. Actor Tom Holland launched bero, Dwyane Wade co-founded Budweiser zero with AB inbev, and dax Shepherd ​created Ted⁤ Segers.

What’s next

The non-alcoholic beer market is expected to continue its upward trajectory, driven by evolving ‌consumer ‌preferences and ongoing innovation in brewing techniques. ⁣Expect to see even​ more variety and complex flavor profiles in the ⁤years ahead.