USA: Health trends and changing consumer preferences drive rapid changes in US beer market

The U.S. beer market is experiencing a significant shift as overall beer consumption continues to decline, while the no-alcohol beer segment shows strong and sustained growth. According to data from IWSR, a leading authority on beverage alcohol trends, total beer volumes in the United States dropped by 3% in 2024. This decline matches the compound annual growth rate (CAGR) decrease of 3% seen from 2019 to 2024. Projections indicate that this downward trend will persist, with another 3% CAGR drop expected between 2024 and 2029, Vinetur reported on July 24.

In contrast, no-alcohol beer is expanding rapidly. Volumes for this category surged by 23% in 2024, mirroring the same CAGR growth over the previous five years. This translates to a total volume increase of 175% since 2019. IWSR forecasts that no-alcohol beer will continue to grow at an annual rate of 18% through 2029. Except for the much smaller stout category, no-alcohol beer is currently the only segment within the U.S. beer market showing consistent growth.

Industry experts point to several factors behind these changes. Marten Lodewijks, President of IWSR US, explains that beer’s traditional dominance in casual and social drinking occasions has been eroded by shifts in consumer behavior, demographic changes, and competition from other alcoholic beverages such as ready-to-drink (RTD) products. RTDs have gained popularity due to their convenience and alignment with modern lifestyles.

Despite these challenges, no-alcohol beer has found momentum thanks to rising interest in sober living, wellness trends, and greater acceptance of health-focused alternatives. More brands are entering the market with improved recipes and marketing that appeals to health-conscious consumers.

IWSR’s US Navigator database tracks monthly beverage alcohol trends across all 50 states and provides detailed insights into no-alcohol beer’s performance. Data from 2019 through April 2025 shows that national sales of no-alcohol beer peak in August, with strong demand also seen in June and July. This pattern suggests that no-alcohol beer is not limited to “dry January” but is popular during summer months when overall beer consumption is high. The lowest sales occur in February and April, likely reflecting a post-holiday slowdown and reduced momentum after dry January.

State-level data reveals that California, Florida, Texas, Massachusetts, and New York lead in total no-alcohol beer consumption from 2019 to April 2025, largely due to their large populations. In 2024, these five states accounted for 35% of all U.S. no-alcohol beer sales. When measured per capita, Maryland, Connecticut, Wisconsin, Colorado, and New Jersey top the list. Wisconsin stands out for its irregular monthly sales patterns and lack of a clear summer peak.

No-alcohol beer is also outpacing other non-alcoholic beverage categories in the U.S., supported by its established presence and ongoing product launches from both major brewers and smaller craft producers. Industry observers expect future growth to be driven by expanded draught options in bars and restaurants and increased involvement from celebrity-owned or endorsed brands. These celebrity associations are helping normalize sobriety and make it more socially acceptable.

Ecommerce represents another area of opportunity for no-alcohol beer. While online sales of traditional beer lag behind those of wine and spirits, direct-to-consumer shipping faces fewer regulatory barriers for non-alcoholic products. This allows brands to reach customers nationwide more easily.

Despite these positive trends for no-alcohol beer, experts caution that its growth will not fully compensate for the ongoing decline in full-strength beer consumption. The lager segment remains dominant but continues to lose ground; it made up more than 85% of total U.S. beer volumes in 2024 but has seen persistent losses.

The rise of no-alcohol beer reflects broader changes in American drinking habits and preferences. As more consumers seek healthier options or choose moderation, this segment is likely to play an increasingly important role in shaping the future of the U.S. beer industry.