Brazil: Beverage industry increasingly turning to non-alcoholic beers

The beverage industry in Brazil is increasingly turning to non-alcoholic beers in response to growing demand for healthier, low-alcohol options and to tap into new consumption occasions. The trend has been reflected in the financial results of the world’s two largest brewers, Heineken and AB InBev (owner of the nation’s leading brewer Ambev), Valor International reported on March 31.

According to data from consultancy Euromonitor, sales of non-alcoholic beer in Brazil surged from 197.8 million litres in 2020 to 649.9 million litres in 2023—an increase of more than 200%. Experts say the jump signals growing industry investment in a previously underdeveloped category. By 2025, Euromonitor projects that Brazil will consume nearly 1 billion litres of zero-alcohol beer annually.

Ambev highlighted the performance of zero-alcohol beers in its 2024 results, reporting a 20% year-over-year increase in the segment. Its portfolio includes brands like Corona Cero and Budweiser Zero.

“The incrementality that the non-alcoholic portfolio brings to the category is fundamental,” said Lucas Lira, Ambev’s CFO. “They allow beer to take part in new consumption occasions. This strategy, along with other innovations, such as gluten-free Stella Pure Gold, contributes to the healthy and sustainable growth of the category,” he told Valor.

The category was also a focal point in AB InBev’s presentation to analysts. The company reported a 23% increase in revenue from non-alcoholic beverages in 2024 over 2023. Its flagship zero-alcohol product, Corona Cero, saw revenue jump 125% in the same period. The group expects the segment to grow five times faster than traditional beer between 2023 and 2028.

Heineken echoed this momentum. CEO Dolf van den Brink said that one of the company’s core bets is Heineken 0.0, the segment leader, which saw a 10% increase in volume last year. Launched in 2017, Heineken 0.0 is now sold in 117 countries. Its growth outpaced that of the regular Heineken brand, which rose 8.8% in volume, and the company’s overall beer portfolio, which grew 1.6%.

Cecília Bottai Mondino, vice president of marketing for the Heineken Group in Brazil, noted that when Heineken 0.0 launched in the country in 2020, the non-alcoholic beer market was still small and even showed signs of contraction.

“This shift reflects a broader change in consumer behavior. There’s growing interest in alternatives that allow for reduced alcohol consumption without giving up the pleasure and social experience that beer provides,” she said.

Despite the growth, distribution remains a hurdle. “A constant challenge is making these products increasingly accessible—whether in bars, restaurants, or supermarkets,” Ms. Mondino added, noting that the company has ramped up efforts across sales, distribution, and event channels.

According to the World Brewing Alliance (WBA), Brazil ranked seventh in global non-alcoholic beer consumption in 2018. By 2023, it had jumped to second place, behind only Germany.

Márcio Maciel, chief executive of Brazil’s National Beer Industry Union (Sindicerv), sees a promising trajectory for the non-alcoholic beer segment. “The significant growth in recent years shows that this isn’t a passing trend, but a structural shift in consumer behavior,” he said.

Mr. Maciel explained that this evolution has been driven by breweries investing in advanced technology. Innovations such as vacuum distillation and membrane filtration—used to remove alcohol while preserving the beverage’s aroma, body, and flavor—have addressed longstanding complaints about taste in the zero-alcohol category.

According to data from Nielsen, non-alcoholic beer is the fastest-growing segment in Brazil, expanding at more than triple the annual rate of traditional beer. Still, the category remains in its early stages and currently represents just 1.2% of total beer consumption in the country.

Gabriel Fagundes, director of industry insights at NielsenIQ Brazil, noted that although the segment is still small, it presents a clear opportunity, as traditional beer consumption is already well established.

“We are now witnessing, in practice, what was once considered just a trend,” said Mr. Fagundes, referring to growing health consciousness—a movement that has gained significant traction since the pandemic, particularly among younger generations.

Mr. Fagundes added that the beverage industry’s growth opportunities extend beyond non-alcoholic beer to include drinks with lower alcohol content, especially the so-called Ready to Drink (RTD) category.

RTDs have recorded double-digit growth in Brazil in recent years. Although still heavily influenced by seasonal peaks—most notably during summer and Carnival—these beverages are increasingly carving out space, particularly among Generation Z, and expanding consumption into home settings.

The rising demand for low-alcohol beverages has also sparked interest from smaller players, including Nib Bebidas, a Brazilian company founded in 2018 that posted revenue of around R$15 million last year.

Pablo Moya, entrepreneur and partner at Nib Bebidas, said that low alcohol is a deliberate strategic bet. A portion of the company’s business is built around bitters—concentrated blends of spices and fruit peels infused with alcohol. Typically, only 1 to 2 ml are used per drink.

Instead of being mixed into a vodka cocktail, bitters can be added to juices, creating distinctive flavor profiles while keeping alcohol levels at around 0.4%.

“For instance, we offer ‘lemon, lime and bitters,’ a drink inspired by an Australian lemonade,” said Mr. Moya. “There are many combinations where bitters serve as the base for non-alcoholic recipes, keeping the alcohol content under 1%.” Today, bitters account for 25% of the company’s revenue.

E-malt.com, la fuente de información global para los profesionales de la industria cervecera y de malteado. Los boletines quincenales de E-malt.com incluyen las últimas noticias de la industria, estadísticas en gráficos y tablas, precios mundiales de cebada y malta, y otra información relevante. Haga clic aquí para obtener acceso completo a E-malt.com. Si usted es un cliente de Castle Malting, puede obtener acceso gratuito al sitio web y publicaciones de E-malt.com. Contáctenos para obtener más información en marketing@castlemalting.com.