Sales of Non-Alcoholic Beer to Soar on Back of Consumer Awareness and Growing Online Retail
The global non-alcoholic beer market is projected to witness a strong growth rate of 7% in the foreseeable future with global sales expected to surpass a valuation of US$ 28 Bn by 2027. The beverage industry is undergoing a transformation with the rise of healthier alcohol segments. Low and non-alcoholic beverages are gaining more popularity as compared to traditional alcoholic beverages owing to growing consumer awareness about health risks associated with alcohol. Furthermore, non-alcoholic beer is becoming a new-found rage worldwide with changing alcohol consumption habits of consumers. As a result, the global non-alcoholic beer industry will account for 5% market share in global beer industry by 2027. In addition, increasing online retail and social media campaigns for non-alcoholic beer are anticipated to amplify the overall sales of non-alcoholic beer industry over the long term forecast period (2019-2027).
Trend of Home Delivery Pivotal for Sharper Profit Margins
The consumer’s need for convenience has provided opportunities for non-alcoholic beer through the home delivery channels. Apart from convenience, quick delivery allows the possibility of fresh cold beer which is coveted in Asia-Pacific tropical heat. Home delivery of beer and non-alcoholic beer by food delivery services is still niche and opening up a plethora of opportunities in the global non-alcoholic beer market. Moreover, an increase in the purchasing power along with changing spending pattern of millennial worldwide is anticipated to create significant demand for non-alcoholic beer over the forecast period. In addition, continuous investments in cutting edge technologies to produce low ABV beers is further supporting the strong growth of the alcohol-free beer market which is projected to grow at a CAGR of 9% during the forecast period.
Low and No-Alcohol Beverage Movement is shaping the Future of Non-Alcoholic Beer Industry
Non-alcoholic beer is witnessing strong demand growth as a recovery drink among athletes Furthermore, transparent labels on non-alcoholic beer products are also getting traction globally which is expected to boost global sales of non-alcoholic beer by 1.7x times over forecast period. Growth is primarily believed to be spawned by the cultural shift towards a healthy, balanced lifestyle especially by younger people. Non-alcoholic beer market is gaining significant steam in United States, Germany and Spain. To meet the increasing demand of consumers, companies engaged in innovation of low and no-alcohol category will give its customers an evolving range of brands and choices. Market has witnessed entry of several new players as the trend continues to gain momentum. In United States, number of businesses selling mocktails or nonalcoholic cocktails has increased by 130% in last years. This shows, rising consumer shift towards non-alcoholic beverages, and will positively affect the global non-alcoholic beer market in short term forecast period.
Leading Brewery Manufacturers are Gaining Strong Operating Margins Despite Challenging Regulations
The global market for non-alcoholic beer holds a highly consolidated structure where top 10 prominent industry pioneers account for over 3/4th share in the industry. Several alcohol producers are shifting their key focus area from alcoholic beverages to low & non-alcoholic beverages to enhance their profitability margins due to zero tax policies for non-alcoholic beverages. Moreover, companies are gaining strong operating margins despite facing challenges related to labelling and less than 1% alcohol content in non-alcoholic beer. In addition, continuous product developments, innovations and collaborations with several sales channels to create new value added solutions has become a key strategy among brewers to penetrate into high potential markets. Recently, several industry giants including Carlsberg A/S, Heineken N.V., Suntory Beer, Kirin among others have also introduced non-alcoholic beer to cater to the consumer trend for alcohol free drinks.
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Source : Fact.MR