Why alcohol-free beer is set to become second-largest beer category globally

Global alcohol sales are broadly static. Although growth can be found in some key markets, alcohol volumes were down 1% while value was up 1%. Beer volumes, too, are declining globally. But against this backdrop, alcohol-free beer is booming. In 2024, it grew 9%, and it’s set to overtake ale to become the second largest beer category globally, according to IWSR, a leader in beverage alcohol data and insights. The biggest beer category globally, by volume, is lager. In 2024, it accounted for a whopping 92% of the market. Coming in at #2 and #3 respectively are ale and alcohol-free beer, both at around roughly 2%. But those positions are predicted to switch in 2025 with alcohol-free beer overtaking ale. And the alcohol-free category is growing in value, too. Alcohol-free beer enjoyed a 8% CAGR in 2019-2024, and that’s only set to grow further: with 12% CAGR forecast for 2019-2024. Beer is, by far, the most significant category for alcohol-free products. It’s supported by decades of innovation: European countries with a strong beer heritage - such as Germany and Spain - were already paying serious attention to alcohol-free brews back in the 1990s (In fact, 1 in every 15 brews served on the continent today is alcohol-free ). Alcohol-free beers have faced challenges in being taken seriously by beer drinkers: but consumers are increasingly receptive to the category as quality improves. That’s particularly the case where considering an alcohol-free brew does not require a great leap of imagination across categories (an alcohol-free brew, for example, providing a convincing alternative to a sessionable beer such as a Radler). And heavyweight brewers have got behind the category with alcohol-free versions of flagship brands and marketing support for the category as well: Heineken 0.0, Budweiser 0.0, Corona Cero, Leffe 0.0 and Guinness 0.0, to name just a few. That’s supported by innovation from craft brewers looking to expand their portfolios, and a growing fleet of brewers dedicated to low and no-alcohol beer such as Lucky Saint, Big Drop and Athletic Brewing Company. “Most no-alcohol categories are experiencing strong growth at the moment as moderation is increasingly mainstream across all generations,” Susie Goldspink, IWSR Head of No and Low Alcohol, told us. “No-alcohol beer has been particularly successful, however, for multiple reasons. “There are more good no-alcohol beer brands on the market. The quality of products is excellent and offers a truly equivalent taste experience that looks and feels like the alcohol version. “No-alcohol beer is widely available now in most major retailers and in on-trade locations. It’s increasingly common for there to be multiple, high-quality options as well, which legitimizes the product. “Lastly, the marketing for no-alcohol beer, which includes large international campaigns, has successfully built a buzz around the category.” The alcohol-free category as a whole, including beer, wine and spirits, is set to grow at a forecast 7% CAGR from 2024 – 2028. That growth is particularly impressive in top markets where traditional alcohol has been struggling, such as the US. Here, alcohol volumes decreased 1% CAGR from 2019-2024, while no-alcohol shot up 28% over the same time frame.

Why alcohol-free beer is set to become second-largest beer category globally

Having rocketed up 9% in 2024, alcohol-free beer is set to overtake ale to become the world’s second largest beer category by volume this year

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