The Rise of Nonalcoholic Beer in a Health-Conscious Market
Anheuser-Busch InBev, a global leader in the beverage industry, has seen a notable decline in its traditional beer sales in North America, with a drop of $1.5 billion last year.
However, the company is witnessing a surge in its nonalcoholic beer sales, which are outperforming expectations. This shift is attributed to a growing consumer trend towards health-conscious choices and a broadening of beverage preferences.
According to Anheuser-Busch InBev’s annual report, its portfolio of nonalcoholic beers, including Budweiser Zero, Stella Artois 0.0, O’Doul’s, and Busch NA, experienced revenue growth in the high teens.
Consumer Shifts and Market Response
Market research from Circana indicates a general decline in the preference for alcoholic beverages, with beer and hard cider preference dropping from 16% in 2020 to 13.5% in 2023, and similar declines observed in wine and spirits.
Scott Scanlon, Circana’s executive vice president of alcoholic beverages, notes that while consumers are drinking less, they are not necessarily abstaining but rather moderating their intake, particularly post-pandemic.
This moderation is reflected in the increased popularity of soft drinks and sports or energy drinks over alcoholic options.
Nonalcoholic Offerings Becoming Mainstream
The acceptance of nonalcoholic beer continues to grow, with notable brands like Budweiser Zero and Corona Cero becoming increasingly prominent, the latter even being featured as a leading brand in the Worldwide Olympic Partner program.
Despite these successes, Anheuser-Busch InBev reported that it is unlikely to meet its 2025 target of having 20% of its total beer volume come from no- and low-alcohol beers, as currently, less than 7% of its global beer volume fits this category.
Future Trends in Nonalcoholic Beverages
Experts believe the nonalcoholic wine and beer market is set to grow by 7% annually between 2023 and 2032, potentially surpassing $30 billion by 2025.
This growth is supported by NielsenIQ data, which shows that nonalcoholic beer accounted for over 85% of nonalcoholic sales from August 2021 to August 2022.
The continued focus on health and wellness suggests that while the popularity of nonalcoholic beverages may plateau, it will likely maintain a significant share of the market moving forward.
