Off-license consumption fuelling rise in non-alcoholic drinks as demand for 0.0% alternative sees post-pandemic surge 

“In Ireland, after covid, on-license growth has been 33% per year, every year for the past three years – it has exploded."

Sales of non-alcoholic beer have soared in recent years, with new figures demonstrating a push amongst consumers to moderate drinking behaviour.

A new report by industry group, Drinks Ireland showed non-alcoholic beer sales rose by 18% in 2023, with growth accelerating even further in recent months through the increased availability of non-alcoholic alternatives in pubs, restaurants, hotels and in the off-trade.

“Our consumption is really flat up until the pandemic, there’s a little bump in 2020, but its really after 2020 that sales really increase," said Fergal O’Connor, senior lecturer in Financial Economics at University College Cork.

"And they mostly increase in off-licenses."

“Off-license consumption is substantially bigger than on-license worldwide, including in Ireland,” Mr O'Connor told the Irish Examiner, citing data from Euromonitor.

“I would have initially assumed a lot of non-alcoholic beer drinking was done in pubs and bars because someone had to drive home, but surprisingly, about 80% of non-alcoholic drinks were purchased in off-licenses.” 

Post-pandemic demand

Per capita alcohol consumption in Ireland is now less than the United Kingdom and most other European countries, including Spain, France, and Germany.

For non-alcoholic drinks, varying trends between Ireland and the UK also occur, with the UK already having an established market for 0.0% alcohol drinks before the arrival of covid. In Ireland, however, only after the pandemic did non-alcoholic beer take off.

“We’re different to a lot of other countries," Mr O’Connor explains. "To put it into perspective, UK off-license growth of non-alcoholic beer is 6%, while on-license growth is only about 2.2% - that is since 2008."

“In Ireland, after covid, on-license growth has been 33% per year, every year for the past three years – it has exploded. Off-license has been 19%, so the trend in Ireland is completely different.” 

 The report notes that at an EU level, 7% of all beer is now a non-alcohol alternative.

“This is in line with the long-term trend of alcohol consumption decline in Ireland, down by 30% in the past 20 years," the report said.

According to data published by Revenue, alcoholic beer sales decreased by 0.5% in 2023 compared to the previous year, with total beer consumption falling marginally from 4,071 hectoliters (hl) to 4,051hl year-on-year. Compared to 2019, before the pandemic, alcoholic beer sales have dipped by 11%.

“All signs are that Ireland will develop a significant 0.0% market in the years to come if promotion continues,” the Drinks Ireland report continued.

“This is on the back of strong consumer-driven demand, linked to the ongoing trend of moderation and consumers seeking balance in their drinking.” 

Yet, despite its meteoric rise, non-alcoholic beer accounts for just 2% of the market, according to Drinks Ireland, with Mr O’Connor also noting its tiny proportion of total consumption. Of that market, lager remains the dominant offering with 57.6% market share followed by stout at 35.6%.

However, the report added that production of non-alcoholic beer has grown by 50%, with Drinks Ireland director Cormac Healy saying this has been driven by “increased availability and awareness of non-alcohol beers, as well as consumer demand for moderation and balance.” 

“This continues to be a positive trend within the industry that needs ongoing support to grow."