Global Non-Alcoholic Malt Beverages Market By Type(Dairy-based Beverages, Carbonated and Soda Drinks), By Flavor(Citrus, Berry, Pomegranate, Classic/ Natural, Apple, Peach, Mixed Fruit, Coffee/Cocoa, Others), By Packaging(Bottles, Cans, Liquid Cartons), By Distribution Channel(Hypermarkets/Supermarkets, Specialty Stores, Convenience Stores, Discount Stores, Independent Retailers, Online Retailers, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

The Global Non-Alcoholic Malt Beverages Market size is expected to be worth around USD 49.8 Bn by 2033, from USD 25.3 Bn in 2023, growing at a CAGR of 7.0% during the forecast period from 2024 to 2033.

The fermentation process is manipulated or halted early to prevent the formation of higher alcohol levels. This category of beverages is especially popular in regions where alcohol consumption is restricted due to cultural or religious reasons, such as in many Middle Eastern countries. Non-alcoholic malt beverages offer a beer-like experience and are often infused with a variety of flavors to enhance their appeal.

Non-alcoholic malt beverages (NAMB) are drinks that mimic the taste of beer but contain very little to no alcohol. Typically, the alcohol content must be less than 0.5% by volume to qualify as non-alcoholic. These beverages are produced using a process similar to traditional beer brewing, where malted grains (mostly barley) are brewed and fermented.

In the European Union, non-alcoholic beverages must contain no more than 0.5% alcohol by volume. In the U.S., beverages are similarly regulated by the Alcohol and Tobacco Tax and Trade Bureau (TTB), with limits set at 0.5% ABV for non-alcoholic labels. These products benefit from lower taxes and fewer marketing restrictions compared to alcoholic beverages.

The export market for non-alcoholic malt beverages is robust, especially from countries like Germany and Belgium, known for their brewing expertise, to markets in the Middle East and North America. For instance, exports of such beverages have seen a significant increase, with a reported growth rate of over 20% annually in some regions.

Key Takeaways

• Non-Alcoholic Malt Beverages Market size is expected to be worth around USD 49.8 Bn by 2033, from USD 25.3 Bn in 2023, growing at a CAGR of 7.0%.
• Carbonated and Soda Drinks held a dominant market position, capturing more than a 57.4% share.
• Citrus held a dominant market position, capturing more than a 19.3% share.
• Bottles held a dominant market position, capturing more than a 54.4% share.
• Hypermarkets/Supermarkets held a dominant market position, capturing more than a 43.4% share.
• Asia Pacific (APAC) Dominating the market with a 42.3% share and generating revenues of USD 10.7 billion.

By Type

In 2023, Carbonated and Soda Drinks held a dominant market position, capturing more than a 57.4% share. This segment benefits from widespread consumer preference for fizzy and refreshing beverages, which are popular across various age groups and demographics. These drinks are favored for their immediate refreshment capability and wide range of flavors, making them a staple in casual dining, fast food, and home consumption settings.

Dairy-based Beverages form another significant segment within the non-alcoholic malt beverages market. Although smaller in market share compared to carbonated drinks, this segment is driven by consumer interest in healthier beverage options. Dairy-based malt beverages are often fortified with vitamins and minerals, making them a nutritious choice for consumers seeking health benefits in addition to hydration. The trend towards healthier lifestyles continues to influence market dynamics and consumer preferences, supporting steady growth in this segment.

By Flavor

In 2023, Citrus held a dominant market position, capturing more than a 19.3% share in the non-alcoholic malt beverages market. This flavor’s popularity stems from its refreshing taste and wide appeal, offering a zesty twist that resonates well with consumers looking for a revitalizing drink option.

Berry flavors also command significant interest, appreciated for their rich, vibrant taste and perceived health benefits, given their antioxidant properties. These flavors cater to a growing segment of health-conscious consumers who prefer naturally sweetened options without compromising on taste.

Pomegranate and Peach flavors follow closely, each bringing a unique profile to the market. Pomegranate is favored for its deep, tart flavor and health-promoting qualities, while peach offers a sweet, mellow alternative, expanding the market’s reach to those who enjoy softer, fruitier notes.

The Classic/Natural flavor maintains steady popularity for those who prefer the traditional, unembellished taste of malt, appealing to purists who appreciate the beverage’s original flavor profile.

Apple and Mixed Fruit flavors provide versatile and widely accepted tastes that align well with global consumer preferences, often sought after for their refreshing qualities and compatibility with various dining settings.

Coffee/Cocoa flavored non-alcoholic malt beverages cater to consumers looking for complexity and richness in their drinks, blending the robust profiles of coffee and chocolate with the smoothness of malt.

By Packaging

In 2023, Bottles held a dominant market position, capturing more than a 54.4% share in the non-alcoholic malt beverages market. This preference for bottles is largely due to their convenience, reusability, and premium appearance, which appeal to consumers looking for portable and environmentally friendly packaging options. Bottles, especially glass ones, are often associated with higher-quality products and are favored in settings where presentation is important.

Cans follow as another popular packaging choice, known for their light weight and compact nature, making them ideal for on-the-go consumption. Cans protect the beverage from light and air, preserving flavor and carbonation better over time, which is crucial for maintaining the integrity of non-alcoholic malt beverages. They are also more easily recyclable, aligning with growing consumer demand for sustainable packaging solutions.

Liquid Cartons make up another segment, appreciated for their eco-friendly properties and innovation in design. These cartons are often used for larger volume packs and are favored for their convenience in transportation and storage, as well as their reduced environmental impact compared to more traditional packaging forms.

By Distribution Channel

In 2023, Hypermarkets/Supermarkets held a dominant market position, capturing more than a 43.4% share in the non-alcoholic malt beverages market. This channel’s success stems from offering a wide assortment of products under one roof, providing convenience and accessibility to consumers seeking variety and competitive pricing.

Specialty Stores are another key distribution channel, catering to more discerning customers looking for premium or niche products. These stores often provide a curated selection that appeals to specific consumer tastes and preferences in non-alcoholic malt beverages, contributing to their strong market presence.

Convenience Stores offer quick and easy options for consumers on the go, making them a popular choice for single-serve and impulse purchases. The availability of non-alcoholic malt beverages in these outlets meets the demand for accessibility and immediate consumption.

Discount Stores also play a significant role by attracting price-sensitive consumers with lower-priced beverage options, making malt beverages accessible to a broader audience.

Independent Retailers maintain a unique position in the market by offering localized and often artisanal products, supporting small businesses and catering to community-specific preferences.

Online Retailers have seen significant growth, driven by the convenience of home shopping and the expansion of e-commerce platforms that can offer a wide variety of non-alcoholic malt beverages more efficiently than traditional retail settings.

Key Market Segments

By Type

• Dairy-based Beverages
• Carbonated and Soda Drinks

By Flavor

• Citrus
• Berry
• Pomegranate
• Classic/ Natural
• Apple
• Peach
• Mixed Fruit
• Coffee/Cocoa
• Others

By Packaging

• Bottles
• Cans
• Liquid Cartons

By Distribution Channel

• Hypermarkets/Supermarkets
• Specialty Stores
• Convenience Stores
• Discount Stores
• Independent Retailers
• Online Retailers
• Others

Driving Factors

Health Consciousness and Lifestyle Changes

The increasing awareness of health issues related to alcohol consumption has led consumers to seek non-alcoholic alternatives. Non-alcoholic malt beverages offer a healthful alternative without compromising on taste, providing antioxidants and often being enriched with vitamins and minerals. This shift is supported by a growing preference for beverages that contribute positively to health and wellness, impacting market dynamics profoundly​..

Innovations in Beverage Offerings

The market is also witnessing significant growth due to continuous product innovation by key industry players who are expanding their non-alcoholic beverage portfolios. New product launches that focus on unique flavors and enhanced nutritional benefits cater to the diverse preferences of health-conscious consumers. These innovations include the introduction of malt beverages with added health benefits, like improved digestion and energy, without the alcohol content​

Expansion in Distribution and Accessibility

The availability of non-alcoholic malt beverages has increased through widespread distribution channels. The growth of online retail platforms and the expansion of supermarket and hypermarket networks globally have made these beverages more accessible to a broader audience. This ease of availability, combined with strategic marketing and the entrance of leading beverage companies into the non-alcoholic space, has played a crucial role in the growth of the market

Restraining Factors

Health and Wellness Trends

The increasing consumer focus on health and wellness is driving demand for beverages with functional benefits, such as added vitamins, minerals, and particularly those with reduced sugar levels. This trend is seeing consumers, especially younger demographics, moving away from sugary drinks, including non-alcoholic malt beverages, in favor of alternatives perceived as healthier​

Market Saturation and Consumer Preferences

The market for non-alcoholic beverages is highly competitive, with a few large players dominating the space. This saturation makes it difficult for non-alcoholic malt beverages to gain significant market traction against established brands known for their diversified product ranges that often include healthier, low-calorie options​

Economic Impact and Supply Chain Challenges

The non-alcoholic malt beverage sector, like many others, faced significant disruptions due to the COVID-19 pandemic, which affected the supply chains and production capabilities. While there was a temporary increase in demand due to the closure of bars and alcohol restrictions, the overall impact included severe disruptions in manufacturing and distribution, negatively affecting market growth during the pandemic​

Growth Opportunity

Innovative Product Offerings and Flavors

There is a notable trend toward innovation in beverage flavors and functionalities. Manufacturers are focusing on product differentiation by introducing unique flavors and functional beverages that cater to specific consumer needs, such as energy-boosting and hydration-enhancing properties. This innovation not only attracts a broader consumer base but also caters to the rising demand for ‘better-for-you’ products across different demographics​

Expansion in Emerging Markets

The Asia Pacific region is witnessing rapid growth due to increasing urbanization, rising disposable incomes, and shifting consumer preferences towards premium and quality beverages. Countries like China and India are pivotal markets, experiencing significant consumer shifts towards non-alcoholic beverages as symbols of a higher living standard. The market growth in these regions is also facilitated by the ease of access to these products through expanding retail distribution channels, both in physical stores and online platforms, which make these beverages more accessible to the growing middle class​

These factors collectively underscore the dynamic expansion potential of the non-alcoholic malt beverages market, with technological advancements in production and packaging, increased consumer awareness of health and wellness, and the strategic entry into new geographic markets driving forward market opportunities. As the market continues to evolve, these trends are expected to shape the future trajectory of the industry, presenting lucrative opportunities for both existing players and new entrants.

Latest Trends

Rise of Functional and Health-focused Beverages

There’s an increasing consumer demand for functional beverages that offer more than just hydration. These products are enriched with vitamins, minerals, antioxidants, and other health-promoting compounds. Such beverages cater to a health-conscious consumer base looking for drinks that support overall wellness and fit into their dietary regimes.

The growing popularity of functional beverages is reflective of a broader trend towards health and wellness, especially in markets like the United States, where consumers are increasingly seeking products that offer specific health benefits​

Popularity of Plant-based and Vegan Options

Aligned with global dietary shifts, there is a surge in the popularity of plant-based alternatives. Non-alcoholic malt beverages that are vegan or made from non-dairy sources are gaining traction. This trend is supported by the increasing number of consumers adopting vegetarian, vegan, or flexitarian diets, who are looking for beverages that align with their ethical and dietary preferences.

Plant-based milks such as almond, soy, and oat are becoming popular bases for non-alcoholic malt beverages, reflecting wider consumer preferences for sustainability and animal welfare​

Global Expansion and Diversification

Non-alcoholic malt beverages are expanding their market presence globally, especially in regions where alcohol consumption is culturally or religiously restricted. This includes markets in the Middle East and parts of Asia.

Additionally, the industry is seeing growth in regions like Europe and North America, driven by an increased focus on health and the availability of diverse flavor options that cater to a global palate. This expansion is further facilitated by the rise of e-commerce, which allows consumers from various parts of the world to access a wider variety of non-alcoholic malt beverage options more easily than ever before

Regional Analysis

Asia Pacific (APAC) Dominating the market with a 42.3% share and generating revenues of USD 10.7 billion, APAC’s robust growth is driven by increasing health awareness and changing lifestyle preferences. Countries like China and India are pivotal, with their large populations increasingly opting for healthier beverage choices due to rising disposable incomes and urbanization. This region’s growth is also spurred by a cultural inclination towards non-alcoholic options.

North America In this region, the market is propelled by a growing demand for health-centric beverages among consumers seeking alternatives to alcoholic drinks. The U.S. and Canada are seeing a rise in non-alcoholic malt beverages fueled by health trends and the popularity of functional drinks that offer added nutritional benefits.

Europe holds a significant position in the global market due to high consumer awareness about health and wellness and the widespread acceptance of non-alcoholic beverages. The market is also supported by stringent regulations regarding alcohol consumption, driving the demand for non-alcoholic alternatives.

Middle East & Africa (MEA) The market in MEA is expanding, particularly in countries where alcohol consumption is restricted for religious reasons. There is a growing consumer base for non-alcoholic malt beverages that offer a similar taste profile to alcoholic beers without the alcohol content, aligning with cultural norms.

Latin America While still developing, the market in Latin America is experiencing growth due to increasing health consciousness and the influence of Western dietary trends. Countries like Brazil and Mexico are gradually embracing non-alcoholic malt beverages, integrating them into their beverage consumption habits.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The non-alcoholic malt beverages market features a diverse array of key players, each contributing to the industry’s growth with unique strategies and product offerings. Among these, Burlinger, Holsten Brauerei AG, and Harboes Bryggeri are known for their robust European presence, leveraging traditional brewing expertise to craft premium non-alcoholic malt drinks that appeal to both conventional and contemporary tastes. These companies focus on quality and authenticity, which are crucial for maintaining consumer trust and loyalty in regions with strong brewing traditions.

In the Asia-Pacific and Middle Eastern markets, Aujan Industries, Asahi Breweries, and Suntory Holdings play significant roles. These companies capitalize on local consumer preferences and extensive distribution networks to promote their non-alcoholic malt beverage brands. Particularly, Asahi and Suntory introduce innovative flavors and packaging designs that resonate with a younger demographic increasingly drawn to health-oriented and non-alcoholic alternatives.

Furthermore, companies like Nestle and Goya Foods have expanded their portfolios to include non-alcoholic malt beverages, catering to the global surge in demand for healthier drink options. Alongside these giants, smaller players such as Mecca Grade Estate Malt and Breva focus on niche markets, offering craft and artisanal non-alcoholic options that emphasize sustainable and local production practices. This strategic diversity among the key players helps drive the market forward by appealing to a broad spectrum of consumers and adapting to dynamic market trends.

Top Key Players in the Market

• Burlinger
• Holsten Brauerei AG
• Harboes Bryggeri
• Aujan Industries
• Asahi Breweries
• Goya Foods
• Royal Unibrew
• Radeberger Gruppe
• CHI Ltd
• United Dutch Breweries
• Suntory Holdings
• Breva
• Nestle
• Mecca Grade Estate Malt
• Brauerei Kaiserdom
• Van Pur

Recent Developments

In 2023, Holsten’s focus on quality and innovation remains evident as they harness advanced brewing techniques to enhance the sensory attributes of their non-alcoholic beers.

In 2023, Burlinger is emerging as a notable player in the non-alcoholic malt beverages market, capitalizing on the rising global trend towards healthier, non-alcoholic drink options.

Report Scope