World: Profile of non-alcohol beers being raised across the globe

The recent Oktoberfest celebration in Munich brought together a big crowd. Of particular interest for this beer-centric event (where 80-90% of all beverages is beer) was the fact that 20% of the total beer volume (6.5 mln litres) was non-alcoholic, an all-time record, RMI Analytics said in their early November report.

Clearly, consumers are gradually returning to the pre-pandemic levels of socializing but at the same time they are shifting their consumptive patterns, as the Oktoberfest data proves.

The profile of non-alcoholic products is being raised as illustrated by Asahi’s partnership for Peroni 0.0% with the Aston Martin F1 team, which puts this brand in front of millions of racing fans around the globe. Heineken has had an ongoing connection with the fast-paced growth of F1, which is no doubt helping the world No. 2 brewer to place Heineken 0.0 in over 110 markets globally. Further, Heineken has clearly detailed their strategy to market at least two zero-alcoholic beers in most major operating countries, while AB InBev continues on an aggressive expansion strategy for zero and low alcohol products across their massive distribution network.

The focus on non-alcoholic beer has also sprouted some unique craft entities, such as Big Drop Brewing (UK) and Athletic Brewing (USA), which are brewers focused 100% on non-alcoholic products. Recently, Big Drop Brewing Founder and CEO Rob Fink outlined the brewer’s journey in getting established with non-alcoholic beers in a market where alcoholic beer is firmly established. Rob Fink expressed the major challenge for non-alcohol beer is a percepton issue, centered more upon what these products don’t have (alcohol), as opposed to what they offer (a non-alcohol experience that also tastes great).

Slowly beer drinkers are asking for a non-alcohol option but the status quo product offering is still difficult to break through. The full potential for non-alcoholic products is difficult to gauge when one also considers the current RTD craze, where full flavour/high ABV products are growing strongly in the USA. While some consumers are increasingly choosing zero-alcohol products, another subset of drinkers want higher ABVs, reminding us once again the complexity associated with consumers. This year’s Oktoberfest shows how the world of alcohol and non-alcohol can easily co-exist, which makes the future very interesting, the analysts said.

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