Companies such as Athletic Brewing Co and Heineken saw immense growth, stemming from their non-alcoholic beer brands maintaining and even ramping up the momentum of the category as consumers shifted to being more health-conscious. Athletic Brewing Co is set to open another facility in California with the backing of notable celebrities and athletes, while AB InBev, taking note of the rise of the category, has pledged one fifth of its total production to go towards the no/low alcohol segment by the year 2025.
Craft beer took a major hit during COVID-19, with closures affecting the main points of sale for these brands. However, craft is expected to return to baseline sales – pre-pandemic and then some.
In a year of widespread declines in 2020, the brands that were able to see growth were those that understood the importance of promotion. Thinking about a category such as no/low alcohol beer, it has been around for decades, yet is only now taking off, seeing enormous growth.
Consumers are becoming more mindful drinkers, and this can be seen with the uptick in sales of no/low alcohol beer, which has been around for years, but is only now growing rapidly. To accommodate rising awareness and consumers’ desire to feel less guilty about drinking alcohol, companies are investing in innovative products with claims that meet consumer demands.
Consumers are shifting to higher quality ingredients, and this shows in their spending habits. Consumers are concerned about ingredient sourcing and sustainability.
Consumers were tired of routine, and especially with restrictions and COVID-19 cases on the rise, many consumers were still stuck at home and had little control. However, consumers were able to control the monotony of the products they consumed, and there has thus been a spike in interest in exotic flavours.
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An alcoholic drink usually brewed from malt, sugar, hops and water and fermented with yeast. Some beers are made by fermenting a cereal, especially barley, and therefore not flavoured by hops. Alcohol content for beer is varied – anything up to and over 14% ABV (alcohol by volume), although 3.5% to 5% is most common. Beer is the aggregation of lager, dark beer, stout and non/low alcohol beer.See All of Our Definitions
This report originates from Passport, our Beer research and analysis database.
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