Opinion

US Demand for Alcohol-Free Beverages Grows as The Holiday Season Draws Near

Other Beer
United States
Published Nov 25, 2022
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As the holiday season approaches, the growing demand for alcohol free drinks and beverages in the US is rising. According to Gallup, an American analytics firm, 71% of Americans have a negative outlook on alcohol, and 46% are actively trying to reduce their consumption in favour of alcohol-free beverages. This trend has led leading industry players to launch alcohol-free products in 2022 to capitalise on this growing sector. In 2022, retail sales of non-alcoholic beer in the US reached USD 397.2 million, rising by 20% compared to the previous year.

As the holiday season approaches, the growing demand for alcohol free drinks and beverages in the US is rising. Younger consumers are driving the surge in popularity of the non-alcoholic beer, wine and cocktails category and some of the major players in the beverage industry are making moves to penetrate the market. Health consciousness is increasing among the young demographic, with more of them turning away from high levels of alcohol consumption towards flavorful substitutes with little or no alcohol content. According to Gallup, an American analytics firm, 71% of Americans have a negative outlook on alcohol, and 46% are actively trying to reduce their consumption in favour of alcohol-free beverages.

This trend has led leading industry players to launch alcohol-free products in 2022 to capitalise on this growing sector. Freixenet recently produced a 0% alcohol sparkling rosé wine. Keurig Dr. Pepper, the beverage conglomerate that owns 7UP and Snapple, and Atypique, a zero percent alcohol cocktail manufacturer, have expanded their investment into non-alcoholic breweries. ABInBev, the world’s largest beer conglomerate, launched 12 new non-alcoholic products over the past year. Market leaders in the soft drinks industry have also been exploring synergies with alcohol companies to tap into the growing zero-alcohol beverage sector. Coca-Cola now offers the Topo Chico hard seltzers brand, while PepsiCo recently launched Hard Mtn Dew.

In 2022, retail sales of non-alcoholic beer in the US reached USD 397.2 million, rising by 20% compared to the previous year. This figure means non-alcoholic beer now makes up 85% of the non-alcoholic beer, wine, and spirits category, as a growing number of consumers in the country moderate their alcohol consumption. Sales of non-alcoholic beer have climbed 90% over the last decade, significantly outpacing the growth of the broader beer market.

The demand for non-alcoholic beverages is also evident in the global market, with sales reaching USD 31.73 billion in 2022, USD 6.45 billion more than the previous year. By 2024, the global non-alcoholic beer market is expected to surpass USD 41.32 billion, rising at a CAGR of 8%. On the other hand, traditional beer sales could increase by only 1.8%.


Source: Statista

The growth of the non-alcoholic beverage industry also opens up markets previously closed to alcoholic drink producers, such as the Middle East, where alcoholic drinks are banned in most countries. Demand has also risen in Asian countries such as Indonesia. Producers also aim to benefit from the low taxes charged on non-alcoholic beverages, and consumers can therefore enjoy these drinks at far lower prices than their alcoholic counterparts.

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