Non-alcoholic brews are quickly becoming more popular. Nirvana Brewery based in London brews a combined 3,200 liters of low as well as alcohol-free beer each week, and is selling in stores that were well known like Whole Foods.
The segment remains a niche market, but larger brewers want a piece of the action, as drinkers start turning toward beer that does not include a buzz due to an increased worry over health risks that are associated with drinking alcohol.
Traditional beer consumption fell on a global basis during both 2015 and 2016. However, the non-alcoholic beer market expanded by 5% during 2016, showed data from Euromonitor International the research company.
Anheuser-Busch InBev, which in 2016 launched new non-alcoholic versions for both Budweiser and Corona, predicts low or alcohol-free brew will represent a hard to believe 20% of its overall sales by 2025.
Heineken released Heineken 0.0 a competitor for the AB InBev brews last May, while Diageo, which owns Guinness, followed in January when it launched Open Gate Pure Brew.
Alcohol-free beer has been brewed since 2015 by Carlsberg, which expected revenue for its non-alcoholic brew to increase at a rate of three-times faster than their overall sales of beer.
Brewers have started responding to the change in tastes of consumers, but there is one other strong incentive that is a driving force in the trend: 1.5 times more revenue is generated by non-alcoholic brew due to no need to pay alcohol tax.
Producers must still convince beer drinkers that beer with 0% alcohol is worth drinking. One brewer of non-alcoholic beer said the reputation it has is terrible, but there is plenty of available hops to be purchased across the globe which means that non-alcoholic beer should not be boring.
Language used in advertising is starting to become more positive, as ads are touting what the beer offers as far as natural ingredients and flavors, while shifting away from the fact it has no alcohol.
One research company said that drinkers have become more open-minded with the idea drinking non-alcoholic beer as 23% of Germans and 33% of Spaniards already drink it occasionally. Erdinger, a German beer maker offers every Berlin marathon runner a pint of alcohol-free brew once they finish the race.
Heineken says that the market for alcohol-free beer has a growth of 9% per year across the UK.