The global beer industry is undergoing a profound structural shift. Traditional beer volumes are under pressure, while no- and low-alcohol (LONO) categories are surging, driven by health-conscious consumers and premiumisation. Major brewers are now racing to capture this growing segment.

Volumes Down, Value Holds

Global beer volumes are facing headwinds. According to preliminary IWSR data, total beer volumes across the world's leading 21 markets fell by 1% in 2025, though value grew slightly. The decline was driven primarily by the US and Brazil, while South Africa and India recorded growth. BarthHaas' 2025/2026 report shows that the world's top 40 brewing groups sold approximately 1,586 million hectolitres in 2025, down 3.1% year-on-year. AB InBev retained the top spot with 484.19 million hectolitres (-2.5%), followed by Heineken with 235.65 million hectolitres (-2.1%) and China Resources Snow Breweries with 110.30 million hectolitres (+1.4%).

Yet the "volumes down, value up" divergence signals that consumers are not abandoning beer—they are trading up to higher-quality, higher-premium products. No-alcohol beer emerged as the brightest spot: volumes grew 8% in 2025, against a 1% decline for the overall category. Premiumisation in the no-alcohol segment is accelerating sharply—29% of no-alcohol beer volumes were in premium-plus price bands in 2025, up from just 20% in 2019. Consumers are willing to pay more for a better no-alcohol experience.

Alcohol: From Default to Option

Kearney's 2026 Beverage Outlook notes that economic pressures, rising health consciousness and shifting social norms are reshaping global beverage demand. "Alcohol is increasingly becoming a choice rather than a default," said Michael Ooms, Kearney's Americas lead for food and beverage. This shift is particularly evident in beer, where LONO products continue to gain share.

IWSR data shows no-alcohol beer is expected to double its global market share from 2% in 2025 to 4% by 2033. A survey of consumers across ten countries found that 37% of no-alcohol beer buyers cite "healthy lifestyle choice" as their primary motivation. North America and Europe currently dominate the no-alcohol beer market, while Asia-Pacific is the fastest-growing region, driven by rising disposable incomes, urbanisation and changing lifestyles. IWSR reports that India and China were among the most notable markets for no-alcohol consumption growth in early 2025, led by younger consumers and health-priority groups.

Big Brewers Go All In

The world's leading beer producers have fully committed to the no-alcohol category. AB InBev reported a 27% revenue increase for its no-alcohol beer portfolio in Q1 2026, with its Beyond Beer segment (all alcohol beverages outside core beer) up 37%. The company has become the global leader in no-alcohol beer by value. Heineken's Q1 2026 trading update showed double-digit growth for its LONO category, led by Heineken 0.0 globally. Diageo reported that Guinness 0.0 became the UK's No.1 no-alcohol beer in H1 FY2026 (to December 2025). According to Global Market Insights, Athletic Brewing led the US no-alcohol beer market with approximately 18% share; the top five players—Athletic Brewing, Heineken, AB InBev, Carlsberg and Molson Coors—together held 47.2% of the global market in 2025.

Emerging Trends and the China Market

US breweries are also reviving interest in mid-strength beers (4-5% ABV), which already account for over 25% of the market in Australia and New Zealand. Founders All Day IPA (4.7% ABV) pioneered the "session IPA" category and remains its bestseller. Advanced brewing technologies—including membrane filtration, vacuum distillation and arrested fermentation—are significantly improving the taste, aroma and mouthfeel of no-alcohol beers, narrowing the sensory gap with traditional beers.

According to IWSR's Bevtrac 2025 consumer insights, India and China were among the most notable markets for no-alcohol beverage consumption growth in early 2025, driven primarily by younger consumers and health-priority groups. However, IWSR also notes that Chinese consumers' alcohol consumption is becoming more rational, with lifestyle changes reshaping drinking habits.

Industry data shows that craft and no-alcohol beers are growing rapidly in China. Tsingtao Brewery has built a no-alcohol portfolio anchored by its 0.0% alcohol-free wheat beer, which uses vacuum distillation technology to reduce alcohol content to below 0.05% and won a gold medal at the 2025 World Beer Cup in the Classic No-Alcohol Ale/Lager category. Chongqing Brewery launched a 0.0% no-alcohol beer in 2025 and followed with an even lower-alcohol "Chongqing 0.0%" in March 2026. At the 7th China International Beer Technology Summit in Shenzhen (December 2025), Josef Fontaine, Managing Director of the Berlin Brewing Academy, noted that no-alcohol beer consumption is growing rapidly worldwide, driven by health-oriented consumer behaviour.

China started later than Western markets, but the momentum is unmistakable. Whether this global trend can be successfully replicated in China remains an open question.