The non-alcoholic beer industry is booming in America, with experts projecting a $40 billion industry valuation by 2032 in the United States – that’s double the size of the craft beer market. This explosive growth leads us to ask the questions, “How?” and “Why?” These answers and more are outlined in this article, so keep reading to learn more and understand the unique and unprecedented opportunities for entrepreneurs and established brands alike.
The Evolution and Trend of Non-Alcoholic Beer Industry in America
While Non-alcoholic beer is more recently surging in America, it has been present and popular in other parts of the world for years. So, what has caused this seemingly sudden surge in consumption throughout the United States? Industry leaders point to a shift in lifestyle priorities, health interests, and continuing market changes in the post-pandemic era.
Who is the Target Market for NA Beer?
According to industry expert Meagen Coester of Go Brewing, there are four types of consumer patterns in the non-alcoholic beer market.
- Substitution
The largest segment consists of drinkers who are searching for alternatives to traditional alcoholic beverages. There are approximately two billion consumers worldwide who drink five or six nights a week, often maintaining their regular alcohol consumption on weekends while choosing non-alcoholic options during the week. - Abstaining
This segment includes those who have made a complete switch to non-alcoholic alternatives – these individuals have completed a “100% substitution” and these consumers don’t feel they’re actually giving up anything. Instead, many report drinking more beer now than before, just without the presence of alcohol. In this segment, non-alcoholic beer shines as a category of its own. - Trialing
This segment includes “sober curious” consumers, with 25-30% of Gen Z not drinking at all. These consumers are described as being “open to trying anything” and are notably comfortable with both non-alcoholic beer and cannabis alternatives, especially in social settings. - Zebra Striping
A smaller group of consumers who alternate between regular alcoholic beer and non-alcoholic options, effectively creating their own low-alcohol drinking experience. This practice is particularly popular in Europe, where consumers might drink a regular beer followed by a non-alcoholic beer to maintain a lower-alcohol experience.
Health and Lifestyle Benefits
In younger generations, drinking frequency continues to fall with some studies showing drinkers under the age of 35 who have given up the habit is up 10% compared to two decades ago. But it’s not just young adults that are driving the surge for the non-alcoholic beer industry.
Many modern non-alcoholic beers offer compelling health benefits. For example, some non-alcoholic beers contain just 45 calories and one gram of sugar per serving, with some varieties being technically gluten-free (under 5 ppm of gluten). Even scientific research supports their potential benefits. For example, during the Munich Olympics, athletes were given non-alcoholic beer as a recovery drink, which resulted in documented performance improvements.
How Big is the Non-Alcoholic Beer Market?
The non-alcoholic beer industry is booming in America, with experts projecting a $40 billion industry valuation by 2032 in the United States. A contributing force to this growth is the category’s unique market behavior compared to traditional beer sales. While regular beer sales spike around events like the Fourth of July and the holiday season, non-alcoholic beer sales maintain steady growth throughout the year, with a notable increase during “Dry January.” This stability, combined with lower tax obligations (as beverages below 0.5% alcohol avoid alcohol taxes), makes NA beer an attractive business opportunity.
One of the most significant opportunities in the non-alcoholic beer space lies in marketing to women. While traditional craft beer typically sees a 70-30 split between male and female consumers, non-alcoholic brands are reporting closer to a 50-50 split. This shift represents a potential correction to what industry experts identify as craft beer’s historical failure to effectively market to women.
Future Outlook
As the non-alcoholic beer industry marches toward its staggering multi-billion-dollar valuation, it represents more than a shift by the numbers – it signals a fundamental shift in consumer habits and preferences. With increasing health consciousness, growing acceptance of alcohol alternatives, and continuous product innovation, the category is positioned for sustained growth.
For entrepreneurs and business leaders in the beverage industry, the non-alcoholic beer market’s evolution offers valuable lessons about responding to changing consumer preferences, identifying untapped market segments, and building brands that align with modern lifestyle trends. The success of this industry demonstrates how traditional categories can be reinvented to meet emerging consumer needs while creating substantial business opportunities.
At Sinuate Media, we understand the unique challenges and opportunities in the food and beverage space. Explore our food and beverage portfolio to see how we have helped brands like yours navigate the path from product development to market success and contact us for a free, initial consultation.
