Japanese brewers bank on alcohol-free beer's popularity amid pandemic

Japan's Asahi Group Holdings forecasts a 20 percent increase in revenue for its non and low alcoholic beer this year while main rival Kirin Holdings expects its sales volumes in the segment to surge 23 percent this year after a 10 percent jump in 2020 as the pandemic propelled an unexpected boom in alcohol-free beer.

According to industry executives, increased time spent at home has freed Japanese from social norms where workmates order a round of the same lager for everyone.

Other factors that boosted non-alcoholic beer consumption were constant reminders to stay healthy during lockdown and improvements to taste.

Alcohol-free beers had often been described as too yeasty, watery or cloying.

Like other industry executives, Suntory CEO Takeshi Niinami says brewers have made progress in bringing the taste of non-alcoholic beer closer to regular beer.

Non-alcoholic beer, which is estimated to account for just one percent of overall beer sales worldwide, could grow globally to $29 billion in 2026, up 65 percent from 2019.

Asahi's overall beer sales plummeted 16 percent by value last year as restaurants and bars were forced to close early. Kirin's sales volume dropped 5 percent.