The beer industry has spent much of the past 15 months struggling to stay afloat as pandemic regulations shuttered venues across the country and tanked on-premise beer consumption. The US beer industry suffered annual volume declines marked by a 2.8% loss last year.

One segment of the beer industry, however, is thriving. The IWSR projects non-alcoholic beer sales in the US will experience compound annual growth at a rate of 9.7% through 2024 — proving that sometimes less really is more.

“What we’re seeing is a moderation trend that’s sweeping across key global markets, and that’s bringing with it increased demand for reduced alcohol, or alcohol-free drinks,” stated Mark Meek, CEO of the IWSR.

According to IWSR research 58% of consumers drink both no/low alcohol beverages as well as regular strength alcohol during the same occasion to “avoid the effects of drinking alcohol” such as hangovers. The goal for many appears to be moderation, as only 14% of consumers reported that they fully abstain from alcohol. 64% of no/low alcohol consumers prefer to drink the beverages “when relaxing at home.”

It is not surprising that a beverage appealing to at-home drinkers surged during quarantine. However, the category’s popularity is continuing to grow in the post-pandemic world. By 2026 Global Market Insights expects the global non-alcoholic beer market to reach $29 billion. The broader no and low alcohol category registered an impressive 30%+ increase last year.

“Thanks to the investment in the category from the major brewers, consumers are becoming more familiar and accepting of no/low beer as a quality product,” a representative from the IWSR stated. Non-alcoholic beers must contain an ABV of less than 0.5% while low alcohol beers, by definition, contain an ABV of anywhere from 0.5% to 3.5%.

Heineken Zero Point Zero

Heineken introduced its zero-alcohol beer alternative, Heineken 0.0, to the US in 2019. The launch was supported by a whopping $50 million marketing campaign. The malt beverage contains just 69 calories per serving and no alcohol. Heineken 0.0’s global campaign platform is #NowYouCan.

“For the U.S., the time has come for an innovation that disrupts the category and offers a new take on how and when people enjoy beer,” stated Jonnie Cahill, Chief Marketing Officer for Heineken USA. “Heineken 0.0 brings an incredible beer taste to the non-alcoholic space and opens a world of opportunity for people to come together and enjoy a brew that expands drinking occasions—not limits them.”

Coors Edge

Molson Coors released Coors Edge towards the end of 2019. The non-alcoholic brew contains 41 calories, 8 grams of carbs and an ABV of less than 0.5%. Like Heineken 0.0, Coors Edge focuses on taste. The non-alcoholic beer is double brewed for flavor.

“The low- and non-alcohol trend is not going away, and we know we need to deliver more options for consumers who are in drinking occasions and do not want to consume alcohol,” said Matt Ferebee, Molson Coors’ Associate Marketing Manager on the Innovations Team. “This is one step of many we’re taking to address these macro trends in the industry.”

Sam Adams Just the Haze

Boston Beer introduced Sam Adams Just the Haze, a non-alcoholic IPA, earlier this year. The brew contains 98 calories and an ABV of less than 0.5%.

“As a beer lover, drinker and brewer, the challenge of creating a non-alcoholic IPA was one myself and my team took very seriously,” insisted Christina Hahn, Manager of Brewing R&D at Samuel Adams. “We seized the opportunity to bring a full-flavor, craft non-alcoholic beer to drinkers, taking notes from international brewing experts and adapting brewing technology to meet our highest expectations.”

Budweiser Zero

Anheuser-Busch’s global non-alcoholic beer brand, Budweiser Zero, hit shelves last year. The NA beer, which was co-founded as well as developed in collaboration with NBA star Dwayne Wade, contains 50 calories, no sugar and no alcohol. The drink’s marketing campaign enlisted the help of famous athletes and encouraged consumers to “join Team Zero” as part of their New Year’s resolutions.

“Pursuing your goals is always easier when you have a team to back you,” said Monica Rustgi, Budweiser’s Vice President of Marketing. “A new year brings a fresh start and Budweiser Zero is getting people to celebrate their accomplishments together, without having to choose alcohol or compromising on taste.”

AB InBev reported that its low and no alcohol offerings will account for 20% of the alcohol beverage company’s production volume by 2025.

As major alcohol beverage companies continue to invest in low and no alcohol beers, consumers are finding new opportunities to enjoy the flavor of their favorite brew without the hangover.

Shirani Jayasuriya
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