The ‘sober curious’ movement sees the rise of non-alcoholic beer

Zoleka Lisa, Vice President: Corporate Affairs, South African Breweries. Image supplied

The move towards no- or low-alcohol alternatives is pronounced. While such a movement is recent, alcohol-free beer is not a new invention. Its origins date back centuries to ancient Egypt, around 5000 B.C.E., and it was consumed by all social classes, connecting us to a rich tradition that spans millennia.

Over the centuries, alcohol-free beer has been known by various names, but its essence has remained unchanged.

In medieval Europe, it was referred to as ‘small beer’; during the Prohibition Years in the United States, it was dubbed ‘near beer’. The popularity of alcohol-free beer has fluctuated in the past, and today, it is experiencing a resurgence in popular culture.

According to IWSR, global sales of no- and low-alcoholic beverages reached $11bn in 2022, with no-alcohol products accounting for 70% of this volume. By 2026, the value of global sales of no- and low-alcoholic beverages is projected to grow by more than a third, largely driven by no-alcohol products.

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Factors influencing the growth of alcohol-free beers

The surge in popularity of alcohol-free beer, even in South Africa, can be attributed to several key factors. One of the primary drivers is the increasing health awareness among consumers.

People are becoming more aware of the health effects of high levels of alcohol consumption and are seeking healthier alternatives that allow them to partake in the social aspects of drinking without the associated risks.

They are also looking for beverages that are inclusive, catering to those who choose to substitute or abstain from alcohol for religious or personal reasons. This trend is particularly pronounced among millennials and Gen Zs, who place a premium on wellness and practice mindful drinking.

Secondly, the improving the quality and variety of alcohol-free beers has also led to increased adoption. The innovation in brewing technologies and techniques has enabled producers to create alcohol-free beers that have similar taste and experience as that of traditional beers.

This exciting development has helped attract beer enthusiasts who enjoy the flavour and experiences of drinking beer without alcohol content.

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Moderation is a key driver of changing tastes

Another significant driver of no- and low-alcohol beer popularity is moderation. More people are increasingly becoming conscious of the impact of alcohol abuse and the social stigma associated with binge drinking.

As a lower-alcohol beverage, beer is a drink of moderation, however, it tends to bear the brunt of other forms of alcohol that tend to be higher in alcohol content.

The increased variety of alcohol-free beers now gives consumers even more options for ‘sharp’ choices while enjoying these products. Furthermore, it encourages a culture of responsibility at points of consumption.

Alcohol-free beer is a business imperative

The move towards alcohol-free beer is not only informed by the changing consumer landscape but also embraced by the beer industry as a business imperative. The beer sector is a crucial contributor to sustainable and inclusive economic growth.

Research by Oxford Economics found that the global beer sector supported $555bn of the world’s gross domestic product (GDP), sustaining around 23 million jobs.

The picture is similar in South Africa. The beer industry supports nearly 250,000 jobs or 1 in 66 jobs. Furthermore, the beer industry added R71 billion of gross value add to the country’s GDP in 2019, which is 1.3% of the local economy.

This places a great responsibility on the sector, one we proudly embrace. It pushes us to constantly innovate our business models and product offerings to remain relevant and profitable and honour our responsibilities in the beer value chain and in the communities we operate as good corporate citizens.

SAB innovates to meet local consumer preferences

The rise of alcohol-free beer is not a fleeting trend but a lifestyle change that is here to stay, and we support that through brands such as Corona Cero, our second non-alcoholic product under the premium beer category.

This latest alcohol-free beer in our market was developed from Corona Extra by extracting the alcohol and then blending the non-alcoholic beer with vitamin D and natural flavours to reach the final recipe.

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It is the only alcohol-free beer in the world infused with vitamin D – a testament to our commitment to innovation and meeting the evolving needs of our consumers.

Conclusion

As the market expands, we are likely to see an increased diverse range of no-alcohol products and innovations come into the market. Discerning breweries will continue experimenting with new flavours and brewing techniques to enhance the appeal of non-alcoholic options.

The market may also see increased competition as more brands enter the space, driving further improvements in quality and variety.

As consumer preferences continue to evolve, the beer industry will need to be agile and adapt to maintain relevance and cater to the varying tastes of its growing audiences.