Non-alcoholic beer is a beer with little or no alcohol content. It reproduces the taste of a beer without inebriating effects of classic alcoholic beers. The non-alcoholic beer or low alcoholic beer usually contain no more than 0.5% alcohol by volume. Alcohol-free beer is a secondary product of brewing industry. Its production is motivated by the global trend for healthier lifestyle and the awareness about the benefits of moderate beer drinking. Non- alcoholic beer is usually prepared by two methods such as limited fermentation and dealcoholization.
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The production of non-alcoholic beer by arrested or limited fermentation is achieved by the limited ethanol formation during the fermentation process. It is the most common method of producing non-alcoholic beer, as the fermentation is limited and no/low ethanol is produced. Whereas, the production of non-alcoholic beer by normal fermentation dealcoholization is achieved by the gentle removal of alcohol from the regular beer.
The increasing interest of consumers in health and alcohol abuse issues motivates breweries to expand the assortment of products with low alcohol content. Beer market is witnessing a significant increase in the consumption of low-alcohol beer, owing to the new consumption practices of reducing the alcohol intake for several reasons, such as: the preference of a healthier lifestyle, new restrictive driving/drinking regulations, religion reasons, etc. With better technology and experimentation of ingredients, non-alcoholic beer has a strong selling point to ensure its continued growth and experience an increasing supply trend during the upcoming years.
The non-alcoholic beer market is highly concentrated in North America and Europe. In Britain, growing health consciousness among consumers has enforced market players to introduce zero alcohol products and meet the changing preferences of consumers. However, regions such as Asia-Pacific and Middle East are anticipated to grow with an impressive growth rate during the forecast period. Nigeria is one of the fastest emerging markets in the African region; thus, acting as a niche market for the international market players.
The top three market players active in the global non-alcoholic beer market account for more than 20% of the overall market share, in terms of revenue. Mergers and acquisitions is a widely accepted strategy in this market. Key market players adopt such strategy to enhance their product portfolio and expand their geographical presence. For instance, Heineken had made an offer to the board of its joint venture partner Fraser & Neave, Limited 'F&N' to acquire F&N's direct and indirect interests in Asia Pacific Breweries Limited 'APB' at a price of S$50.00 per APB share, for a total consideration of S$5.1 billion. In addition to this, they also offered $163 million for F&N's interest in the non-APB assets held by Asia Pacific Investment Private Limited 'APIPL' , a joint venture between HEINEKEN and F&N.
Market Segment Analysis
The global non-alcoholic beer market is mainly segmented on the basis of type, application, and geography. By type, the market is segmented into limit fermentation, normal fermentation dealcoholization. On the basis of application, the market is segmented into commercial, household and other. Geography wise, the market is segmented into North America, Europe, Asia-Pacific, South America, Middle East and Africa.
GLOBAL NON-ALCHOLIC BEER MARKET SEGMENTATION
- Limited fermentation
- Normal fermentation dealcoholization
- North America
- South America
- Middle East and Africa.
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