- Non-alcoholic beer is projected to grow by 8% this year, according to IWSR, making it the second-largest beer category worldwide in 2025
- The sector's growth is largely driven by millennials and Gen Z, among whom sober-curious lifestyles are on the rise
- Meticulous Research predicts the global non-alcoholic beer market will reach $34.97 billion by 2032
Non-alcoholic beer is set to overtake ale as the second-largest beer category by volume in 2025, according to global drinks provider IWSR.
The data provider is projecting an 8% growth in the sector in 2024-2025, with the U.S. alone spending $2 billion more on non-alcoholic beer over the next five years.
Despite this growth, non-alcoholic beer is far from the top-selling beer category globally, with only about 2% of the market share according to CNBC. Lager, with its 92% market share, remains the leader.
Don't Miss:
- Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
- Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation.
Non-alcoholic beverages have been gaining popularity as consumers cut back on their alcohol consumption, says IWSR. Millennials and Gen Z are the largest groups of non-alcoholic beverage consumers, and are largely responsible for the push for brewers to invest in zero-proof alternatives.
Today's Best Finance Deals
With companies like NCSolutions reporting that 49% of Americans are trying to drink less in 2025, and 58% of Americans are planning to try non-alcoholic beverages this year, major beer brands are cluing in and rolling out alcohol-free versions of their classic products. Guinness, Heineken, and Budweiser have all introduced zero-proof options within the last five years.
Several brands with only non-alcoholic offerings have also sprung up recently. Athletic Brewing, which was founded in 2018, is now the top-selling non-alcoholic beer brand in the U.S., CNBC reports. The upstart holds 17% of the category's volume share, edging out Bud Zero and Heineken's 0.0 version. Just three years earlier, Athletic held only a 4% share of the sector.
Trending: Invest where it hurts — and help millions heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold.
As is true with many other branches of the beverage market, no-alcohol beer has experienced a rash of celebrity-backed brands flooding the shelves. Actor Tom Holland launched Bero in 2024, retired NBA player Dwyane Wade helped get Bud Zero off the ground in 2020, and actor Dax Shepherd created Ted Segers in 2023.
Despite projections from Meticulous Research that the global non-alcoholic beer market will reach $34.97 billion by 2032, IWSR says there are still a number of barriers the market must overcome in order to reach that growth potential. Specifically, availability, price, and taste have the ability to affect market value. "Boomers' expectations for lower prices conflict with the higher production costs of most no-alcohol products," the report says.
Read Next:
- Be part of the next med-tech breakthrough for only $350 — 500+ surgeries already done with nView's AI system.
- If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
