The beer industry sobers up

The UK non-alcoholic beer market has seen substantial success in recent years, after growing consumer awareness for health and evolving social attitudes, particularly in the younger generation. This has been spearheaded by brands such as Heineken 0.0 and Guinness 0.0, the former of which has achieved a 10% growth in sales volumes - compared to the 8.8% of its alcoholic counterparts over 2024.

Guinness 0.0 also doubled its European sales volumes over a similar period. Through varying methods such as cold filtration processes, these brands are able to offer consumers an excellent value proposition - beverages that retain the quality tastes and social atmosphere consumers have grown to expect, whilst negating the potentially unwanted effects from alcohol.

This is in the midst of rapidly changing health attitudes, particularly among the younger and older generations. According to The FT, 39% of the former demographic have abstained from alcohol whilst many among “Gen Z” have adopted what’s called “zebra-striping” - alternating between alcoholic and non-alcoholic beverages between each drinking session. Furthermore, it has enabled the traditional “designated driver” to be able to enjoy a pint with their companions, without having to order a previously obligatory can of Coke.

UK laws on alcoholic tax means that NA variants of beer are often sold at a lower price point, in keeping with a similar value proposition to sugar-free soft drinks. This furthers NA’s competitive edge in the beer market, especially amidst the cost of living crisis of recent years. Brands should be wary to keep the pricing of non-alcoholic and alcoholic variants separate, so as to not disrupt this.

Although, threats may lie in the entrenched drinking attitudes of more middling and conservative generations; whilst 87% of pubs offer a non-alcoholic beverage (BBPA), these are generally surreptitiously-placed bottles under the counter. So, although establishments have greatly expanded their NA offerings in recent years, the typical “local” in the UK will continue to have alcoholic draught at the forefront. As such, alcoholic beer will continue to have a dominant presence in the UK pub, as long as NA offerings continue to remain “under the counter”.

Despite this, the UK NA beer market is set to grow at a compound annual growth rate of 7% between 2024 and 2028. Heineken looks forward to an organic increase in operating profit from 4% to 8% over 2025, after its shares rallied by 12% over early February (WSJ). Whilst much of this can be attributed to its focus on key middle-income markets such as India, and premium brand image, the success of its Heineken 0.0 has played a “very important” role - as stated by their CEO, Dolf van den Brink.

Come what may, non-alcoholic beer’s popularity continues to flow.