Non-alcoholic beer grew by 9% globally in 2024, even as the total volume of alcoholic beverages declined by 1%. It is projected to surpass ale this year and become the second-largest beer category in the world.

Millennials and Gen Z are driving the shift, fueled by moderation trends like the “sober curious” and “damp lifestyle” movements, with U.S. volume increasing by 175% from 2019 to 2024.

Success in emerging markets hinges on localization, as brewers adapt non-alcoholic offerings to regional tastes while a lingering social stigma poses a challenge despite increasing global acceptance.

While global alcohol consumption softened in 2024, one category is gaining ground — and fast.

Nonalcoholic beer volume grew by 9% worldwide last year, even as total beverage alcohol volume declined by 1%, according to new data from IWSR, a global beverage alcohol research firm.

At its current pace, non-alcoholic beer is projected to outpace ale this year, becoming the world’s second-largest beer category, behind lagers.

That shift marks a significant milestone for a segment that now constitutes about 2% of global beer volume. Lagers continue to dominate the market at 92%, but IWSR anticipates that non-alcoholic beer will grow by 8% annually through 2029. By contrast, ale is projected to decline by 2% per year during that same timeframe.

The growth is driven by younger consumers, particularly millennials and Gen Z, who are more likely to embrace moderation trends like the “sober curious” or “damp lifestyle” movement. For brewers, this shift is reshaping product strategy — especially as younger drinkers increasingly reach for alcohol-free options, whether at home or in social settings. In the U.S., the category has seen sharp growth, with volume rising 175% between 2019 and 2024. This change has propelled the U.S. from the sixth-largest to the third-largest non-alcoholic beer market globally, behind Germany and Spain.

IWSR points to particularly strong performance in developing regions, where local preferences and cost considerations are shaping product strategy. In markets like Brazil, Mexico, and parts of the Middle East and North Africa, malt-based or locally adapted styles are often more popular than Western-style 0.0 lagers. Analysts note that long-term growth may depend on producers tailoring offerings to meet regional tastes and availability.

One challenge may lie in altering social perceptions. A recent study commissioned by Heineken 0.0 found that while interest in non-alcoholic beer is rising, some consumers — particularly younger men — still report feeling social pressure when choosing alcohol-free options. Among Gen Z participants surveyed across five countries, more than a third said they felt compelled to drink alcohol in social settings, and 21% reported having concealed their decision to opt for a non-alcoholic beverage.

Still, demand is growing. Heineken’s 0.0 product saw 14% growth in the first half of 2024, contributing to a global non-alcoholic beer market now worth $13.7 billion. In several countries, alcohol-free beer is available at more than half of the locations that offer its alcoholic counterpart.

Even as the broader no- and low-alcohol category saw slower growth in 2024, non-alcoholic beer continues to stand out. With strong consumer interest, regional adaptation, and shifting cultural norms, the category is becoming increasingly central to how brewers envision the future of beer.