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Rapidly-growing non-alcoholic beer market ‘underdeveloped’

Sales of 0.0 products rising fast but Irish consumers are a long way short of some European counterparts

Bottles of Heineken 0.0 on the conveyor belt during production. Photograph: Lex van Lieshout/ANP/AFP via Getty Images
Bottles of Heineken 0.0 on the conveyor belt during production. Photograph: Lex van Lieshout/ANP/AFP via Getty Images

Non-alcoholic beer sales have increased dramatically worldwide in recent years, representing a genuine bright spot for booze-makers in general and Heineken in particular, given 0.0′s global dominance. Irish consumers have, by and large, followed that trend but significant room to improve remains, according to the Dutch brewing giant.

On Friday, Heineken said its alcohol-free brand will be available on draught in some 3,000 locations by the end of the year, capturing almost half of the non-alcoholic beer market here, according to CGA/Nielsen research. That’s no mean feat, given the brand launched here just six or so years ago.

And Diageo, which is spending €30 million boosting production of Guinness 0.0 at St James’s Gate Brewery in a move that will almost double capacity for brewing to 176 million pints a year for the Irish and international market, hopes to have the product in 2,000 pubs by the turn of the year.

So why then did Fiona Curtin, marketing director of Heineken Ireland, say the booze-free market here remains “underdeveloped”?

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According to Ibec group Drinks Ireland’s latest figures, sales of alcohol-free beer alternatives increased by a healthy 18 per cent in 2023, essentially doubling its market share over four years in the process. However, that’s from a very low base and overall: they still represented just 2 per cent of the total Irish beer market last year.

It’s certainly nothing to sniff at, given beer remains the most popular beverage in Ireland, representing 42.9 per cent of total alcohol sales here. Yet, it’s completely out of whack with other European countries, Heineken says.

In Spain, where booze-free options account for about 14 per cent of the beer market, the brewing giant says its products are “consumed regularly at lunchtime and with food”.

The case for growth in Ireland is clear. Here, as in the rest of the world, consumers are drinking with increasing moderation and the popularity of alcohol-free options is tied broadly to that trend.

But while per capita beer consumption has declined precipitously over the past couple of decades, the State’s love affair with pints and cans remains intact. The Irish consumer remains one of the biggest consumers of beer globally on a per capita basis. Irish pub-goers are unlikely to take any cues from Spanish tipplers any time soon, it appears.