The Non-Alcoholic Craft Beer Market Is Booming!

When I first began to dabble in the non-alcoholic craft beer market in 2018, it was a desolate wasteland littered with two breweries and stacks upon stacks of O’Doul’s and German beers I could not pronounce. As the industry began to grow, a large social media community began to grow, as well. Within these Facebook groups and Instagram hashtags, it felt like NA beers were becoming the norm, but it was just a bubble of confirmation bias that always happens when you surround yourself with like-minded people with similar interests. Then the pandemic hit…

While beer sales stayed relatively steady, wine and spirits sales rose by 9% and 11% respectively in the first few months of the pandemic (LaMotte, CNN, 2021), and all that time at home had a lot of people evaluating their alcohol intake. Within the bubble of NA craft beer enthusiasts, this was seen in the form of growth in the community. Non-Alcoholic Beer, a Facebook group dedicated to the discussion and discovery of NA beer, saw a growth in members from under 2,000 when the pandemic began to nearly 6,000 by the end of 2020. Outside of that bubble, the rest of the world was seeing the availability of NA craft beer skyrocket as exclusively sober brands like Athletic Brewing saw massive leaps in national distribution.

The numbers don’t lie

In the two years since the pandemic began, NA beer sales have grown by nearly 32% (Dingwall, Forbes, 2021), and since 2018, the overall market share, while still small, has grown by nearly 67% (Chappell, NPR, 2022). Outside of the beer industry, the rise in non-alcoholic beverages as a whole has been exponential, with numerous companies springing up all over the country that makes alcohol-free spirits and mocktails.

In the business world, a good way to monitor trends is to have your ear to the ground on start-ups, such as the growing NA breweries, as well as watch what the leaders of those industries are doing. While the small independent brands have shown that there is potential, that potential is underlined by major brands across the U.S. and Europe releasing their own products. The large media campaign for the release of Heineken 0.0 in 2019 was only the beginning, as we have seen the release of Budweiser Zero and Guinness 0.0 in the last two years. In addition, two major gin labels, Tanqueray and Gordon’s, have now released a zero-proof version of their classic beverages.

Big Brands have been paying attention and are making decisions accordingly

While many craft beer drinkers may be used to seeing breweries try things out on a small batch basis, it is highly unusual for companies like Budweiser, Heineken, Guinness, and Tanqueray to do something like this unless they already know there’s a market for the product. The landscape of alcohol is shifting as young Millennials and Generation Z decide to live healthier lifestyles. These trends are being noticed by brand leaders and the offerings we are seeing at restaurants, bars, and concert venues are changing.

Of the top 35 craft breweries in the U.S. according to USA Today, half a dozen of them are offering NA versions of their classic beers, including Sam Adams’ Just the Haze, Dogfish Head’s Lemon Quest, and Brooklyn Brewery’s Special Effects Hoppy Amber and IPA. When I asked some of the other top breweries why they have fallen short in offerings like these, most offered no comment, including Bell’s Brewery, Southern Tier Brewing, and New Belgium. While the only brewery to offer comment on this matter was Stone Brewing, their explanation likely falls in line with other major craft breweries.

“The non-alcoholic beer category is undeniably growing and one that we at Stone Brewing are keeping a close eye on,” says Erin Smith, Stone Brewing Vice President of Marketing. “…we’re choosing to stay laser-focused on the priorities that best serve our fans and business right now…” Erin continues, probably echoing sentiments from other breweries right now. After all, it is a pricey investment to add the machines needed to remove alcohol from the beer, and there are plenty of brewers out there that may not see that as a worthwhile expenditure.

At the end of the day, anyone branching into the NA world of craft beers is going to be surprised at the growing selection out there, and investors looking to find a place to put their money maybe even more supportive of these breweries as the market continues to grow.

HAPPY EVERY HOUR: It’s FINALLY HERE! Guinness 0.0 (Zero) Is Finally Available in the US of A!

Resources Are Available

If you or someone you know is experiencing difficulties surrounding alcoholism, addiction, or mental illness, please reach out and ask for help. People everywhere can and want to help; you just have to know where to look. And continue to look until you find what works for you. Click here for a list of regional and national resources.

Resources are available

Resources Are Available

If you or someone you know is experiencing difficulties surrounding alcoholism, addiction, or mental illness, please reach out and ask for help. People everywhere can and want to help; you just have to know where to look. And continue to look until you find what works for you. Click here for a list of regional and national resources.

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