As The Non-Alcoholic Category Continues To Grow, Booze–Free Beer Will Be The Space To Watch

Dry January is done. While many have swapped back to higher-proof beverages, the non-alcoholic (NA) movement persists.

After wrapping the latest on-premise measurement analysis, CGA Strategy finds that no- and low-alcohol beer will be a vital player in the growth of the NA space.

According to the research firm, greater presence of no- and low-alc beers in the on-premise could fuel huge growth for the overarching NA category. Their findings point to lower-proof beers as a gateway drink for consumers curious about non-alcoholic options — within the overall beer category, no and low is one of the fastest-growing segments, increasing by 96% over the last 52 weeks.

At the end of 2021, CGA’s on-premise measurement services revealed that in beer, the no- and low-alcohol segment was worth just under $100 million, up from $99 million valuations in 2019. While not a massive jump, it demonstrates the segment’s resiliency and ability to perform in a global pandemic.

“No/low is clearly becoming a more popular choice for On-Premise visitors, and in particular beer drinkers,” says Patrick Bannon, the CGA Client Director, Americas. “ If beer manufacturers can reproduce some of the great tasting beer that consumers know and love as no/low alternatives they are putting themselves in the best position for success.”

While just 5% of Dry January participants drank non-alcoholic beers in 2019, that number jumped to 29% in 2022.

In the fall of 2019, just 12% of beer drinkers were interested in no- and low-alcohol beer. By the fall of 2021, this number had grown to 16%. In step, beer drinkers consuming mocktails in the on-premise has grown from 8% in 2019 to 13% in 2021, highlighting a growing interest in healthier or sans-alc options.

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