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Non-Alcoholic Beer Production in the UK - Market Research Report (2015-2030)

Freddie Griffin Freddie Griffin London, United Kingdom Last Updated: November 2025 SIC SP0.118

Revenue

£345.5m

2025-26

£345.5m

Past 5-Year Growth

Profit

£XX.Xm

Employees

793

Businesses

983

Wages

£XX.Xm

Non-Alcoholic Beer Production in the UK industry analysis

Non-Alcoholic Beer Production in the UK is experiencing lift-off. Sales of alcohol-free beers are booming as Brits increasingly moderate their drinking, with health and financial pressures driving cutbacks in alcohol consumption. Younger consumers are leading the change, driven by wellness culture and a desire to avoid post-drinking anxiety as health awareness grows. Major brewers have moved quickly to cement their place, rolling out alcohol-free versions of favourites like Stella Artois, Peroni and Heineken, hoovering up sales as moderation goes mainstream.

Trends and Insights

  • Health consciousness is driving demand for non-alcoholic beverages. Awareness surrounding the dangers of alcohol has grown among individuals, expanding revenue for non-alcoholic beer producers as more consumers make the switch.
  • Lager is the most popular type of non-alcoholic beer. Major brands like Lucky Saint and Heineken have made non-alcoholic lagers, with those being popular and receiving positive reviews from customers and critics alike.
  • London is a vital hub for the UK beer industry. Its rich brewing history and evolving craft scene cater to a vast, diverse market. With a youthful population and high tourist demand, London significantly influences the alcohol-free beer market.
  • The beer market faces intense competition from various substitutes. Alcoholic beer and soft drinks are some of the main substitutes that threaten alcohol-free beer sales.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 14.7 % over the past five years, to reach an estimated £345.5m in 2025.

Trends and Insights

A seismic shift in drinking habits fuels demand for alcohol-free beer

  • Alcohol consumption is dropping in the UK as financial and health concerns collide to reshape drinking habits. The shift is strongest among younger consumers, influenced by a surging wellness culture and choosing to sidestep “hangxiety” – the heightened anxiety and low mood that often follow drinking. Aviva data show that 48% of Brits planned to cut their alcohol intake in 2025, rising to 61% of 18-24-year-olds and 68% of those aged 25-34. The shift in drinking habits is showing up at the tills, with CGA data revealing that total alcohol sales, including beer, cider, wine and spirits, fell by nearly 3% in the 12 months to February 2025.
  • Additional trends and insights available with purchase
Non-Alcoholic Beer Production in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Ongoing moderation trends will sustain growth in alcohol-free beer demand

  • Falling alcohol consumption will continue laying the groundwork for non-alcoholic beers to take off. Data from Drinkaware shows drinking habits have eased, with 14% of adults drinking four or more times a week in 2025, down from 18% in 2018. As moderation becomes the norm, alcohol-free beer will see growing demand as consumers look for balance without abandoning beer altogether.

Biggest companies in the Non-Alcoholic Beer Production in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
Heineken UK Ltd
96.7
AB InBev UK Ltd
62.4
Molson Coors Brewing Company (UK) Ltd
58.0

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Non-Alcoholic Beer Production in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Lager (<0.5% ABV), Ale (<0.5% ABV) and Stout and porter (<0.5% ABV). Lager (<0.5% ABV) is the largest segment of the Non-Alcoholic Beer Production in the UK.

Trends and Insights

Lager’s dominance in the beer market translates into a major share of alcohol-free sales

  • The nation’s long-standing preference for lager has translated into strong demand for its alcohol-free counterparts. Its crisp, familiar flavour appeals to drinkers looking to moderate their intake while still enjoying the taste and feel of a classic pint.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Operators in this industry buy barley, malt, sugar, yeast and other ingredients to process into non-alcoholic beer (less than 0.5% ABV), including lager, ale and stout. Beer is packaged in bottles, cans or kegs for sale to wholesalers, retailers, pubs and bars.

What's included in this industry?

Products and services covered in the Non-Alcoholic Beer Production industry in the United Kingdom include Lager (<0.5% ABV), Ale (<0.5% ABV) and Stout and porter (<0.5% ABV).

Companies

Companies covered in the Non-Alcoholic Beer Production industry in the United Kingdom include Heineken UK Ltd, AB InBev UK Ltd and Molson Coors Brewing Company (UK) Ltd.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Non-Alcoholic Beer Production industry in the United Kingdom include alcohol by volume (abv), teetotalism and craft beer.

Industry Code

SIC 2007

SIC 11.05 - Non-Alcoholic Beer Production in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Health consciousness is driving demand for non-alcoholic beverages. Awareness surrounding the dangers of alcohol has grown among individuals, expanding revenue for non-alcoho...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Lager is the most popular type of non-alcoholic beer. Major brands like Lucky Saint and Heineken have made non-alcoholic lagers, with those being popular and receiving positi...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

London is a vital hub for the UK beer industry. Its rich brewing history and evolving craft scene cater to a vast, diverse market. With a youthful population and high tourist...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The beer market faces intense competition from various substitutes. Alcoholic beer and soft drinks are some of the main substitutes that threaten alcohol-free beer sales.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Heineken has spent big on launching non-alcoholic beers. Heineken's non-alcoholic 0.0 beer has been rolled out to 50 markets globally and it has launched non-alcoholic versio...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Heineken UK Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of AB InBev UK Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Molson Coors Brewing Company (UK) Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Heineken UK Ltd, and factors influencing its performance in the industry
  • Description and key data for AB InBev UK Ltd, and factors influencing its performance in the industry
  • Description and key data for Molson Coors Brewing Company (UK) Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Non-alcoholic beer producers don't have to pay beer duty. Since non-alcoholic beers have less than 1.2% ABV, they are exempt from excise duty, a benefit for producers.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Big brands harness celebrity power for non-alcoholic beer promotions. Big beer brands lean on celebrity partnerships to boost visibility and align with lifestyle-driven marke...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Non-Alcoholic Beer Production industry in the United Kingdom in 2025?

The market size of the Non-Alcoholic Beer Production industry in the United Kingdom is £345.5m in 2025.

How many businesses are there in the Non-Alcoholic Beer Production industry in the United Kingdom in 2025?

There are 983 businesses in the Non-Alcoholic Beer Production industry in the United Kingdom, which has declined at a CAGR of 0.4 % between 2020 and 2025.

How may import tariffs affect the Non-Alcoholic Beer Production industry in the United Kingdom?

The Non-Alcoholic Beer Production industry in the United Kingdom is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.

How may export tariffs affect the Non-Alcoholic Beer Production industry in the United Kingdom?

The Non-Alcoholic Beer Production industry in the United Kingdom is likely to be impacted by export tariffs with exports accounting for a moderate share of industry revenue.

Has the Non-Alcoholic Beer Production industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Non-Alcoholic Beer Production industry in the United Kingdom has been growing at a CAGR of 14.7 % between 2020 and 2025.

What is the forecast growth of the Non-Alcoholic Beer Production industry in the United Kingdom over the next 5 years?

Over the next five years, the Non-Alcoholic Beer Production industry in the United Kingdom is expected to grow.

What are the biggest companies in the Non-Alcoholic Beer Production industry in the United Kingdom?

The biggest companies operating in the Non-Alcoholic Beer Production industry in the United Kingdom are Heineken UK Ltd, AB InBev UK Ltd and Molson Coors Brewing Company (UK) Ltd

What does the Non-Alcoholic Beer Production industry in the United Kingdom include?

Lager (<0.5% ABV) and Ale (<0.5% ABV) are part of the Non-Alcoholic Beer Production industry in the United Kingdom.

Which companies have the highest market share in the Non-Alcoholic Beer Production industry in the United Kingdom?

The company holding the most market share in the Non-Alcoholic Beer Production industry in the United Kingdom is Heineken UK Ltd.

How competitive is the Non-Alcoholic Beer Production industry in the United Kingdom?

The level of competition is moderate and increasing in the Non-Alcoholic Beer Production industry in the United Kingdom.

Methodology

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

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