CGA’s OPM service, which tracks the latest trends in US bars and restaurants to help suppliers and brand owners maximize trading, shows total beer sales by value in the 12 months to mid-May were 2.9% down year-on-year. In sharp contrast, the no-alcohol beer segment achieved growth of 33.7%. While beer’s rate of sale dropped 9.4%, rate of sale (RoS) in the non-alcohol segment rose 13.6%.
Alcohol-free beer has also generated a sharp increase in visibility and price, the Tracker indicates. Its total distribution points in the US jumped by 11.9%—nearly triple the 4.1% rate of growth across the beer category as a whole. Average selling prices in the no-alcohol segment rose by 5.2%—well ahead of the all-beer increase of 3.0%.
CGA’s research also reveals the styles of alcohol-free beer that are driving the growth. Pale lager remains the most popular type with a 55% share of the market, and its sales by value have risen by 8.0% year-on-year, but as segment matures non-alcoholic IPA’s, stouts and blonde ales are gaining share. The most eye-catching growth has come from Indian Pale Ale and blonde or golden ale, where sales have rocketed by 170.9% and 165.5% respectively. Stout has grown 133.9%, though from a smaller base.
Regional analysis from CGA’s OPM indicates year-on-year growth for non-alcohol beer in all key US states, with Colorado and Washington among those recording the sharpest rises in share of the total beer market. The sub-category is projected to hold ~1% total beer On Premise $ value share in western US by 2026.
CGA by NIQ’s Client Solutions Director, said: “While no-alcohol beer remains a relatively small element of US On Premise drinks sales, it’s one of the most explosive categories for growth. It’s powered by a global trend for moderation in alcohol intake as consumers focus more sharply on their health, and reinforced by the flow of new, distinctive and high-quality alcohol-free products from major-league beer brands. There’s much more growth to come, but in an increasingly competitive segment suppliers will have to work hard on visibility and activations. Closely tracking performance and identifying nuances by region, channel and beer style will be essential to brand success in this dynamic part of the market.”
CGA’s OPM solution delivers in-depth intelligence on the spirits and beer categories across the US On Premise, with expert analysis by channel, sub-category, state and much more. To discover more about the service and opportunities for bespoke analysis, contact Drew Hummel here or visit https://cgastrategy.com/unlock-the-potential-of-opm.
