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title: Demand for Non-Alcoholic Beer is expected to rise at a CAGR of 7.2% through 2033

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The most recent intelligence report from Fact.MR projects continual revenue growth in the **[non-alcoholic beer market](https://www.globenewswire.com/en/news-release/2022/03/08/2399350/0/en/Non-Alcoholic-Beer-Market-is-projected-to-Expand-at-Over-7-CAGR-by-Garnering-a-Revenue-of-US-14-Bn-from-2021-to-2031-Fact-MR-Analysis.html)** from 2021 to 2031, with a projected Compound Annual Growth Rate (CAGR) of 7%. By the conclusion of this forecast period, it’s anticipated to reach a valuation of US$ 14 billion. This expansion is primarily driven by the increasing preference for healthy drinking habits, notably among millennials.

Based on the historical performance of this market, non-alcoholic beer sales reached US$ 7 Bn, experiencing a steady CAGR of 5% from 2016 to 2020. Amidst the COVID-19 pandemic, prospects only seemed to loom larger, attributed to the drastic shift towards consumption of non-alcoholic and health boosting beverages.

The malted grain segment is anticipated to be the fastest-growing segment over the forecast period. Increasing awareness about the health benefits of non-alcoholic beer has surged the global demand in recent years. In 2021 Asia will likely govern a revenue share of nearly 25%. Within Asia, China and India currently represent the biggest markets growing at a 9% CAGR.

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Non-Alcoholic Beer- A Transient Development or Long-Term Opportunity?
Non-alcoholic beer is gaining traction amongst young athletes as a recovery drink. Moreover, with the advent of healthier non-alcoholic drinks, the beverage industry is undergoing a colossal transformation.

Beverages with low alcohol content, or completely free of alcohol are gaining more popularity compared to the conventional alcoholic drinks, owing to mounting consumer awareness about the substantial health risks associated with the consumption of alcohol.

Worldwide, non-alcoholic beer is fetching a new-found rage, which is in alignment with the changing habits of consumers surrounding alcohol consumption. Discounted prices in supermarkets, are attracting eyeballs of consumers, propelling product demand through this sales channel in several regions.

Key Segments Covered:
Material

Grapes-based Non-Alcoholic Beer
Berries/Apples-based Non-Alcoholic Beer
Malted Grains-based Non-Alcoholic Beer
Hops-based Non-Alcoholic Beer
Yeast-based Non-Alcoholic Beer
Enzymes-based Non-Alcoholic Beer
Type

Alcohol Free (0.0% ABV) Beer
Low-Alcohol (Upto 1% ABV) Beer
Sales Channel

Non-Alcoholic Beer Sales via Liquor Stores
Non-Alcoholic Beer Sales via Convenience Stores
Non-Alcoholic Beer Sales via Supermarkets
Non-Alcoholic Beer Sales via Online Stores
Non-Alcoholic Beer Sales via Restaurants & Bars
Non-Alcoholic Beer Sales via Travel Retails
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Competitive Landscape
Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions.

In May 2020, Danish brewer Carlsberg and British pubs and cask ale firm Marston’s announced a joint venture which surged Marston’s share by 36%, recovering some of the value lost since the Covid-19 lockdown shut pubs across the country, as investors applauded the tie-up.
Under the deal, the Danish firm will own 60% of the new Carlsberg Marston’s Brewing Company with Marston’s holding 40% and receiving a cash payment of up to £273m.
In May 2017, Heineken N.V announced the acquisition of all the remaining shares in Lagunitas Brewing Company. To maintain the Lagunitas culture and free spirit, the company will continue to operate as an independent entity within HEINEKEN and will report within the HEINEKEN Americas Region.
Key Companies Profiled:

Heineken N.V.
Suntory Beer
Bernard Brewery
Big Drop Brewing Co.
Anheuser-Busch InBev S
Krombacher Braueri
Erdinger Weibbrau
Moscow Brewing Company
Carlsberg A/S
Bayerische Staatsbrauerei Weihenstephan
Arpanoosh CO
Why are Malted Grain Non-Alcoholic Beers Highly Preferred?
Malted grains segment captured over 65% share of the global non-alcoholic beer industry in 2018. Presence of high enzyme concentration in malted grains provide efficient starch conversion and improved fermentation, this is the primary reason for market growth.

Further, malted beverage market is projected to value nearly US$ 15 Bn. Owing to ample availability of barley, millet, rice, wheat and oat globally reinforced the grains consumption in non-alcoholic beer market.

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How will the U.S Generate Demand for Non-Alcoholic Beer?
In the U.S, the number of businesses selling mocktails or non-alcoholic cocktails has increased by 130% in recent years. This exhibits, rising consumer shift towards non-alcoholic beverages, and will positively affect the global non-alcoholic beer demand in the short run.

U.S accounted for a governing share of 20% as of 2020. This growth is attributable to increasing number of heart diseases, rapidly growing working population, and stringent government laws on alcohol consumption. Furthermore, millennials are voluntarily switching over to consuming non-alcoholic beverages.