Report Overview

GCC Non-Alcoholic Beer Market - Industry Trends & Forecast Report, 2029

GCC non-alcoholic beer market size is expected at a CAGR of 7.25% during the forecast period between 2023 and 2029. Major growth drivers for GCC non-alcoholic beer market include increasing awareness about the health advantages of non-alcoholic beer and rising shifting consumer preference towards healthier alternatives. The polyphenols such as polyphenol xanthohumol, a molecule derived from hops that can aid in various cardiovascular health conditions and enhance blood pressure, inflammation, and homocysteine levels. Consequently, due to the rising incidence of cardiovascular ailments in the GCC region and greater recognition of the health benefits of non-alcoholic beer, the market has experienced significant growth in recent years. The market expansion is also fueled by the increasing demand for non-alcoholic beer among millennials and working women. As the income levels and consumer living standards have improved, per capita spending on high-quality and premium products, including non-alcoholic beverages, has risen. To cater to the changing consumer tastes and preferences, many major non-alcoholic beer manufacturers globally are introducing new flavors and textures in the GCC region. To align with the traditional culture and beliefs of Gulf country consumers, companies like Lyre's and Heineken N.V. are adding malted beverages to their product categories. Also, the increasing number of expatriates in countries such as the UAE, Saudi Arabia, and Qatar is contributing to the growth in demand for non-alcoholic beer. This is primarily due to the prohibition of alcohol consumption in several GCC countries, such as Saudi Arabia and Qatar, which can result in fines, imprisonment, and deportation. Expatriates who are accustomed to drinking alcohol may find it challenging to comply with these regulations and may seek alternative options. Consequently, these restrictions are driving the sales of non-alcoholic beer in the region.

GCC Non-Alcoholic Beer Market – Overview

Non-alcoholic beer, which contains a maximum of 2.8% ethyl alcohol by volume, is a popular substitute for alcoholic drinks. Studies show that it can produce the same feelings as regular beer, with variations such as IPA, malt, and wheat. Apart from being a refreshing beverage, it also has several health benefits such as reducing the risk of heart disease, promoting bone growth, and aiding sleep. It is particularly recommended for groups such as pregnant women, people with liver and cardiovascular diseases, athletes, and those on medication. Non-alcoholic beer is made through the fermentation process of hops, malt, yeast, and water, producing a range of flavors. Its availability in many places has led to a decrease in the consumption of alcoholic beverages. Increasing non-alcoholic beer consumption in the GCC countries is anticipated to generate opportunities for other major players to penetrate the market. Additionally, hypermarket and supermarket chains such as LULU Hypermarket and Spinneys have begun to acquire substantial stocks of non-alcoholic beer to meet the rising demand in the UAE and Saudi Arabia. Therefore, the expected growth in the availability of non-alcoholic beer in various brick-and-mortar and online retail stores is predicted to drive market expansion in the GCC region in the years ahead.

GCC Non-Alcoholic Beer Market

Growth Drivers

Increasing Health Consciousness

The demand for low-calorie non-alcoholic beer has risen significantly in the GCC region, driven by the increasing health awareness among young people and women. As the popularity of non-alcoholic malted beverages has grown, brands such as Budweiser have introduced low-calorie versions, leading to a preference for diet-based non-alcoholic drinks. These beverages are free of sugar, and some, like Bud Zero, have up to 50% fewer calories, making them appealing to millennials. Moreover, tax hikes on sugary products in the Gulf countries in the past years have caused carbonated drinks to become more expensive, leading consumers to switch to non-alcoholic malted beverages. As a result, the growing adoption of low-calorie non-alcoholic drinks is driving the growth of the GCC non-alcoholic beer market.

Restraints

Stringent Regulations on Non-Alcoholic Beer Alcohol Concentration

Non-alcoholic beer manufacturers face difficulty in maintaining the alcohol concentration below 0.5% ABV, which increases production costs and reduces gross profit margins. This complicated production process is further complicated by strict regulations in countries like Kuwait, the UAE, and Saudi Arabia, where even a slight deviation from the limit results in the rejection of the entire shipment. Additionally, the import of non-alcoholic beers is also hampered by red tape issues, tax laws, and bureaucracy, which delay the issuance of necessary licenses and permits. These regulations have become a significant obstacle to the growth of the non-alcoholic beer market in the GCC region.

Impact of COVID -19 on GCC Non-Alcoholic Beer Market

COVID-19 adversely affected GCC Non-Alcoholic Beer market. The lockdowns and restrictions implemented by the governments have affected the production and supply chain of non-alcoholic beer. The closure of bars and restaurants resulted in a decrease in sales of non-alcoholic beer. However, the demand for non-alcoholic beer has increased in the retail sector due to the closure of bars and restaurants, and people staying at home. The shift in consumer preferences towards healthier options has also boosted the demand for non-alcoholic beer. The market is expected to recover as the restrictions ease, and the demand for non-alcoholic beer is expected to increase in the coming years.

GCC Non-Alcoholic Beer Market

Segmental Coverage

GCC Non-Alcoholic Beer Market – By Type

By type, GCC non-alcoholic beer market is bifurcated into Low-alcohol beer (up to 0.5% ABV) and Alcohol-free beer (0.0% ABV) segments. In 2022, the market was mostly controlled by the alcohol-free segment, which is expected to grow at a faster CAGR during the forecast period. This is mainly attributed to cultural and regulatory barriers that limit alcohol consumption, as well as a longstanding history of producing non-alcoholic beer in many regions. However, low-alcohol beer is frequently marketed as a more health-conscious substitute for regular beer, whereas alcohol-free beer is geared towards individuals who wish to abstain from alcohol entirely. Consequently, the increasing availability of non-alcoholic beer products made from fruits is driving market expansion in a positive direction.

GCC Non-Alcoholic Beer Market – By Packaging

By packaging, GCC non-alcoholic beer market is segmented into Cans, Bottles, and Kegs. The bottle packaging segment holds the highest market during the forecast period. The main reason for bottle packaging being the most popular in the market is because it is easily accessible and cheaper to produce. In addition, the abundance of local manufacturers such as Middle East Glass and Saudi Arabia Glass Co. Ltd. in countries like the UAE and Saudi Arabia provides glass bottles at low prices and supports the production of craft beers in the region, contributing to the increasing sales of non-alcoholic beer in glass bottles. Furthermore, consumers prefer glass bottles for storage purposes because they are able to preserve the taste and freshness of the product for an extended period of time. Additionally, glass bottles are recyclable, which reduces production costs and provides added advantages. Therefore, these factors suggest that glass bottles are more widely accepted for packaging non-alcoholic beers than other types of packaging.

GCC Non-Alcoholic Beer Market – By Flavor

Based on flavor, GCC non-alcoholic beer market is divided into Classic, Fruity, Spicy, and Others (Citrus, Coffee, etc.) segments.

GCC Non-Alcoholic Beer Market – By Distribution Channel

Based on distribution channel, GCC non-alcoholic beer market is divided into Supermarkets & Hypermarkets, Convenience Stores, and Online Retailers. The supermarkets & hypermarkets segment is expected to hold the highest market share during the period in analysis. Supermarkets have become increasingly popular as the primary retail destination. Customers prefer shopping at locations where they can easily fulfill all their grocery requirements in one place. Additionally, supermarkets are promoting the growth of non-alcoholic beverage sales at a steady year-on-year rate. Meanwhile, the online retailers’ segment has experienced substantial growth and has the potential to expand even further. Marketing channels for e-commerce are cost-effective, making it an attractive option for businesses to reach potential customers and drive sales.

GCC Non-Alcoholic Beer Market – By Country

Geographically, GCC non-alcoholic beer market covers Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE. Over the past few years, Saudi Arabia and the UAE have been the primary consumers of non-alcoholic beer due to the increasing number of expatriates and tourists, as well as the expanding distribution channels in these regions. In addition, the trend of consuming craft non-alcoholic beers such as Moussy and Barbican in microbreweries due to their soothing taste has contributed to the growing sales of craft non-alcoholic beers in Saudi Arabia and the UAE. Moreover, strict regulations on the consumption and production of alcoholic beverages in the UAE and Saudi Arabia have encouraged consumers to shift their preference towards non-alcoholic beer, as it offers a similar flavor profile to alcoholic beer. As a result, the demand for non-alcoholic beverages is expected to increase significantly in the forecast years due to the increasing availability of flavored non-alcoholic options and the strict regulations on alcoholic drinks.

Competitive Landscape

Major players operating in GCC non-alcoholic beer market include Heineken, Budweiser Prohibition Brew, Bavaria, Guinness Malta, Barbican, Malt Star, Moussy, Jupiler, Holsten Zero, Carlton Zero, Free Damm, and Cobra Zero. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In 2022 - The Qatar World Cup had Budweiser from Anheuser-Busch InBev as one of its primary sponsors. During the tournament, only non-alcoholic beer, specifically Bud Zero, was sold at the stadiums. This was because all other types of alcoholic beer were prohibited at the event.

Scope of the Report

By Type

• Low-alcohol beer (up to 0.5% ABV)

• Alcohol-free beer (0.0% ABV)

By Packaging

• Cans

• Bottles

• Kegs

By Flavor

• Classic

• Fruity

• Spicy

By Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Online Retailers

By Country 

• Bahrain

• Kuwait

• Oman

• Qatar

• Saudi Arabia

• UAE

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. GCC Non-Alcoholic Beer Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing health consciousness
         2. Advancements in brewing technology
      2.  Restraints
         1. Non-alcoholic beer can be more expensive than traditional beer
      3. Opportunities
         1. Expanding tourism sector
         2. Growing demand for healthy beverages
      4. Challenges
         1. Limited flavors and brands
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. GCC Non-Alcoholic Beer Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Low-alcohol beer (up to 0.5% ABV)
         2. Alcohol-free beer (0.0% ABV)
      2. By Packaging
         1. Cans
         2. Bottles
         3. Kegs
         4. Others (pouches, tetra packs, etc.)
      3. By Flavor
         1. Classic
         2. Fruity
         3. Spicy
         4. Others (Citrus, Coffee, etc.)
      4. By Distribution Channel
         1. Supermarkets and Hypermarkets
         2. Convenience Stores
         3. Online Retailers
         4. Others (Bars, Pubs, Restaurants)
      5. By Country
         1. Bahrain
         2. Kuwait
         3. Oman
         4. Qatar
         5. Saudi Arabia
         6. UAE
5. Bahrain Non-Alcoholic Beer Market
   1. 1. Market Size & Forecast, 2019–2029
      2. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Packaging
      3. By Flavor
      4. By Distribution Channel
6. Kuwait Non-Alcoholic Beer Market
   1. 1. Market Size & Forecast, 2019–2029
      2. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Packaging
      3. By Flavor
      4. By Distribution Channel
7. Oman Non-Alcoholic Beer Market
   1. 1. Market Size & Forecast, 2019–2029
      2. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Packaging
      3. By Flavor
      4. By Distribution Channel
8. Qatar Non-Alcoholic Beer Market
   1. 1. Market Size & Forecast, 2019–2029
      2. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Packaging
      3. By Flavor
      4. By Distribution Channel
9. Saudi Arabia Non-Alcoholic Beer Market
   1. 1. Market Size & Forecast, 2019–2029
      2. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Packaging
      3. By Flavor
      4. By Distribution Channel
10. UAE Non-Alcoholic Beer Market
    1. 1. Market Size & Forecast, 2019–2029
       2. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By Packaging
       3. By Flavor
       4. By Distribution Channel
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. GCC Non-Alcoholic Beer Company Market Share Analysis, 2022
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
12. Impact of Covid-19 on GCC Non-Alcoholic Beer Market
13. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT)
    1. Heineken
    2. Budweiser Prohibition Brew
    3. Bavaria
    4. Guinness Malta
    5. Barbican
    6. Malt Star
    7. Moussy
    8. Jupiler
    9. Holsten Zero
    10. Carlton Zero
    11. Free Damm
    12. Cobra Zero
    13. Other Prominent Players
14. Key Strategic Recommendations
15. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       GCC Non-Alcoholic Beer Segmentation

Figure 2       GCC Non-Alcoholic Beer Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       GCC Non-Alcoholic Beer Market Size, By Value (USD Million), 2019–2029

Figure 5       GCC Non-Alcoholic Beer Market Share, By Type, By Value, 2019–2029

Figure 6       GCC Non-Alcoholic Beer Market Share, By Packaging, By Value, 2019–2029

Figure 7       GCC Non-Alcoholic Beer Market Share, By Flavor, By Value, 2019–2029

Figure 8       GCC Non-Alcoholic Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 9       GCC Non-Alcoholic Beer Market Share, By Country, By Value, 2019–2029

Figure 10     Bahrain Non-Alcoholic Beer Market Size, By Value (USD Million), 2019–2029

Figure 11     Bahrain Non-Alcoholic Beer Market Share, By Type, By Value, 2019–2029

Figure 12     Bahrain Non-Alcoholic Beer Market Share, By Packaging, By Value, 2019–2029

Figure 13     Bahrain Non-Alcoholic Beer Market Share, By Flavor, By Value, 2019–2029

Figure 14     Bahrain Non-Alcoholic Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 15     Kuwait Non-Alcoholic Beer Market Size, By Value (USD Million), 2019–2029

Figure 16     Kuwait Non-Alcoholic Beer Market Share, By Type, By Value, 2019–2029

Figure 17     Kuwait Non-Alcoholic Beer Market Share, By Packaging, By Value, 2019–2029

Figure 18     Kuwait Non-Alcoholic Beer Market Share, By Flavor, By Value, 2019–2029

Figure 19     Kuwait Non-Alcoholic Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 20     Oman Non-Alcoholic Beer Market Size, By Value (USD Million), 2019–2029

Figure 21     Oman Non-Alcoholic Beer Market Share, By Type, By Value, 2019–2029

Figure 22     Oman Non-Alcoholic Beer Market Share, By Packaging, By Value, 2019–2029

Figure 23     Oman Non-Alcoholic Beer Market Share, By Flavor, By Value, 2019–2029

Figure 24     Oman Non-Alcoholic Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 25     Qatar Non-Alcoholic Beer Market Size, By Value (USD Million), 2019–2029

Figure 26     Qatar Non-Alcoholic Beer Market Share, By Type, By Value, 2019–2029

Figure 27     Qatar Non-Alcoholic Beer Market Share, By Packaging, By Value, 2019–2029

Figure 28     Qatar Non-Alcoholic Beer Market Share, By Flavor, By Value, 2019–2029

Figure 29     Qatar Non-Alcoholic Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 30     Saudi Arabia Non-Alcoholic Beer Market Size, By Value (USD Million), 2019–2029

Figure 31     Saudi Arabia Non-Alcoholic Beer Market Share, By Type, By Value, 2019–2029

Figure 32     Saudi Arabia Non-Alcoholic Beer Market Share, By Packaging, By Value, 2019–2029

Figure 33     Saudi Arabia Non-Alcoholic Beer Market Share, By Flavor, By Value, 2019–2029

Figure 34     Saudi Arabia Non-Alcoholic Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 35     UAE Non-Alcoholic Beer Market Size, By Value (USD Million), 2019–2029

Figure 36     UAE Non-Alcoholic Beer Market Share, By Type, By Value, 2019–2029

Figure 37     UAE Non-Alcoholic Beer Market Share, By Packaging, By Value, 2019–2029

Figure 38     UAE Non-Alcoholic Beer Market Share, By Distribution Channel, By Value, 2019–2029

List of Tables

Table 1        GCC Non-Alcoholic Beer Market Size, By Type, By Value, 2019–2029

Table 2        GCC Non-Alcoholic Beer Market Size, By Packaging, By Value, 2019–2029

Table 3        GCC Non-Alcoholic Beer Market Size, By Flavor, By Value, 2019–2029

Table 4        GCC Non-Alcoholic Beer Market Size, By Distribution Channel, By Value, 2019–2029

Table 4        GCC Non-Alcoholic Beer Market Size, By Country, By Value, 2019–2029

Table 5        Bahrain Non-Alcoholic Beer Market Size, By Type, By Value, 2019–2029

Table 6        Bahrain Non-Alcoholic Beer Market Size, By Packaging, By Value, 2019–2029

Table 7        Bahrain Non-Alcoholic Beer Market Size, By Flavor, By Value, 2019–2029

Table 8        Bahrain Non-Alcoholic Beer Market Size, By Distribution Channel, By Value, 2019–2029

Table 9        Kuwait Non-Alcoholic Beer Market Size, By Type, By Value, 2019–2029

Table 10      Kuwait Non-Alcoholic Beer Market Size, By Packaging, By Value, 2019–2029

Table 11      Kuwait Non-Alcoholic Beer Market Size, By Flavor, By Value, 2019–2029

Table 12      Kuwait Non-Alcoholic Beer Market Size, By Distribution Channel, By Value, 2019–2029

Table 13      Oman Non-Alcoholic Beer Market Size, By Type, By Value, 2019–2029

Table 14      Oman Non-Alcoholic Beer Market Size, By Packaging, By Value, 2019–2029

Table 15      Oman Non-Alcoholic Beer Market Size, By Flavor, By Value, 2019–2029

Table 16      Oman Non-Alcoholic Beer Market Size, By Distribution Channel, By Value, 2019–2029

Table 17      Qatar Non-Alcoholic Beer Market Size, By Type, By Value, 2019–2029

Table 18      Qatar Non-Alcoholic Beer Market Size, By Packaging, By Value, 2019–2029

Table 19      Qatar Non-Alcoholic Beer Market Size, By Flavor, By Value, 2019–2029

Table 20      Qatar Non-Alcoholic Beer Market Size, By Distribution Channel, By Value, 2019–2029

Table 21      Saudi Arabia Non-Alcoholic Beer Market Size, By Type, By Value, 2019–2029

Table 22      Saudi Arabia Non-Alcoholic Beer Market Size, By Packaging, By Value, 2019–2029

Table 23      Saudi Arabia Non-Alcoholic Beer Market Size, By Flavor, By Value, 2019–2029

Table 24      Saudi Arabia Non-Alcoholic Beer Market Size, By Distribution Channel, By Value, 2019–2029

Table 25      UAE Non-Alcoholic Beer Market Size, By Type, By Value, 2019–2029

Table 26      UAE Non-Alcoholic Beer Market Size, By Packaging, By Value, 2019–2029

Table 27      UAE Non-Alcoholic Beer Market Size, By Flavor, By Value, 2019–2029

Table 28      UAE Non-Alcoholic Beer Market Size, By Distribution Channel, By Value, 2019–2029

Table 29      Heineken 0.0 Company Overview

Table 30      Heineken 0.1 Financial Overview

Table 31      Budweiser Prohibition Brew Company Overview

Table 32      Budweiser Prohibition Brew Financial Overview

Table 33      Bavaria 0.0% Company Overview

Table 34      Bavaria 0.0% Financial Overview

Table 35      Guinness Malta Company Overview

Table 36      Guinness Malta Financial Overview

Table 37      Barbican Company Overview

Table 38      Barbican Financial Overview

Table 39      Malt Star Company Overview

Table 40      Malt Star Financial Overview

Table 41      Moussy Company Overview

Table 42      Moussy Financial Overview

Table 43      Jupiler 0.0% Company Overview

Table 44      Jupiler 0.0% Financial Overview

Table 45      Holsten Zero Company Overview

Table 46      Holsten Zero Financial Overview

Table 47      Carlton Zero Company Overview

Table 48      Carlton Zero Financial Overview

Table 49      Free Damm Company Overview

Table 50      Free Damm Financial Overview

Table 51      Cobra Zero Company Overview

Table 52      Cobra Zero Financial Overview