Happy Friday!
My time as an analyst for Front Office Sports has concluded, but I’m excited to announce I’m back with more insights and analysis.
I rebranded this publication to expand my scope and coverage.
I will dive into sports, tech, wellness, fitness, gaming, and more topics with a business and investment angle.
My goal is to give founders, investors, and professionals in sports an edge by breaking down the hottest topics in the industry.
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Why Is Non-Alcoholic Beer Becoming Popular?
“Wanna grab a non-alcoholic beer?” might be a text you’ll receive from a friend or a date in 2023.
Shifts in consumer behavior are changing the alcoholic beverages industry, as demand for non-alcoholic beer is rising and is projected to grow fast in 2023.
Recent research has found mounting evidence of the negative effects of alcohol on the brain, body, and performance, and the convergence of different trends has driven a higher interest in alcohol abstinence — particularly among the young generation:
In two decades, the number of young adults in the U.S. who abstained from alcohol increased from 20% to 28%.
A study in Australia found that the pandemic lockdown reduced alcohol consumption in Gen Z by 44% — the most out of every generation.
Yet, the downward trend in overall alcohol consumption is consistent amongst all age groups.
Still, given that beer is an integral part of society, decreasing demand primes non-alcoholic beer to become a proper substitute:
Anheuser Busch committed to making 20% of its beer volume non-alcoholic and low-alcohol by 2025 and launched non-alcoholic Budweiser in 2020.
NielsenIQ says revenues for non-alcoholic beer accounted for $328.6 million in 2022 — up 19.5% from 2021.
Projections estimate that revenues for non-alcoholic beer will continue growing at a 7.56% CAGR.
Lastly, the rise of new and innovative companies like Athletic Brewing, Partake, and Lyre suggests increased interest from private markets in the sector.
The Takeaway
The mindset about alcohol consumption is changing — but it’s still early.
Non-alcoholic alcohol only had a 0.47% market share within the alcohol industry in 2022 — the highest it’s ever been. Still, we could expect more companies, capital, and products to emerge in this growing space in 2023 and beyond.