Australia: Non-alcoholic beer industry booming in Australia

The non-alcoholic beer industry is booming as Australians cut back on booze, with alcohol consumption hitting the lowest levels in decades, the Sydney Morning Herald reported on June 11.

Endeavour Group, the parent company of Dan Murphy’s and BWS, reported one in 10 customers had bought a low- or zero-alcohol product across the past 12 months. Asahi Beverages – which accounts for almost half of the Australian beer market – said non-alcoholic beer sales had tripled in three years, and mid-strength, low- and zero-alcohol drinks made up 30 per cent of their total beer sales.

Australia’s non-alcoholic beer market is expected to grow 9.16 per cent a year, pulling in an estimated A$289 million in revenue this year.

IWSR Drinks Market Analysis found, it’s not teetotallers driving global growth, but Millennials cutting back on their consumption: 78 per cent of no- and low-alcohol consumers also drink full-strength alcohol.

The trend was obvious at the Sydney International Convention Centre Great Australasian Beer SpecTAPular craft beer festival last weekend, where stallholders noticed non-alcoholic options became more popular as the day progressed.

Lauran Vohmann started drinking non-alcoholic beers after completing dry January last year.

“It’s something you can have in a social situation, and it feels much less weird than having a red can of Coke in your hand,” she said.

The 31-year-old wanted to cut back on alcohol for overall health and to avoid hangovers, “hangxiety” and the “Sunday scaries”.

“You can still have that feeling of having a beer and take the edge off, without having something bad.”

Alcohol consumption is at its lowest level in more than 50 years at 9.4 litres per capita, and Australians aged 18-44 are twice as likely to consume zero- and low-strength alcohol compared with those aged over 45.

According to a 2021 DrinkWise study, 32 per cent of those who decreased their alcohol consumption since the start of the pandemic attributed the decrease to lower- and zero-alcohol products.

Co-founder of non-alcoholic craft brewery Heaps Normal Andy Miller said an increasing number of consumers were considering lifestyle factors when deciding to drink, including physical and mental conditions, medications, and consuming cannabis products.

“It’s this changing view on alcohol as not being the only kind of socially acceptable substance that we can use to augment our social experiences,” he said.

“We’re not trying to demonise alcohol; we’re trying to create a more inclusive social experience.”

The main drinkers of Heaps Normal, Miller said, were craft beer lovers and Millennials, followed by Gen Z – which is limiting its alcohol intake.

Bridge Road Brewing head brewer James Dittko said the company started trialling the development of its non-alcoholic pale ale Free Time during COVID-19.

While there was a very slow demand at the time, the company felt like it was the “socially responsible” thing to do.

Both Heaps Normal and Free Time are made using maltose-negative yeast which cannot ferment complex sugars, leading to a lower alcohol content.

“[Free Time] is extremely popular,” Dittko said. “We thought it would be a worthwhile thing to do, but didn’t see it as a driving force … but it’s now our second-biggest seller.”

Co-owner and head brewer of BentSpoke Brewing Co. Richard Watkins said their company instead filters alcohol out from a traditionally fermented beer using specialist equipment.

It was driven by a surge in demand for its mid-strength and low-alcohol products, coupled with feedback from customers for an alcohol-free option.

“Now it’s part of our drinking culture. You’re expected to be able to offer non-alcoholic products … [for] people that don’t want to consume alcohol, or [people] who choose to sometimes drink non-alcoholic products,” he said.

12 June, 2023