Analysis: Non-alcoholic beer increasingly popular in the Middle East

In recent years, breweries such as Carlsberg and Anheuser-Busch InBev have seen an increasing interest in non-alcoholic beers throughout the Middle East and North Africa. This opens up opportunities in a region with one of the lowest alcohol consumption rates in the world. There are many reasons for this development.

Non-alcoholic beer increasingly popular in the Middle East
© Photo by Engin Akyurt on Pixabay
14.10.2024

Question of faith: Muslims should not drink alcohol
Islam, the dominant religion in the region, forbids the consumption of alcohol. Non-alcoholic beers offer devout Muslims the opportunity to enjoy a beer-like drink without violating religious commandments.

Political reasons: Boycott of US beverage brands
Some Egyptian consumers are boycotting American beverage brands such as Coca-Cola and Pepsi because they see the USA as a supporter of Israel in the conflict with Palestine. Instead, they are increasingly turning to local non-alcoholic beer brands such as Carlsberg's Egyptian Moussy.

Increasing health awareness
Many consumers in the region are paying increasing attention to their health. Non-alcoholic beer is perceived as a lower-calorie alternative to sugary soft drinks. Studies also show that non-alcoholic beer has a positive effect on digestion and can prevent kidney stones.

Forecast: long-term growth expected
Analysts assume that the increased interest in non-alcoholic beers is not a short-term trend, but will continue in the long term. According to estimates, the market for non-alcoholic beer in the Middle East is set to grow to 50 million US dollars by 2030 - with annual growth rates of 5%.

However, it will still take some time before society's perception changes and non-alcoholic beer is fully accepted. Breweries are therefore adapting their strategies to regional conditions. They are initially concentrating on large cities and tourist centers, where demand is highest. Over time, consumption will then spread to the wider population.

Despite cultural hurdles, the growing popularity of non-alcoholic beer offers great opportunities for breweries to tap into new markets in the Middle East and North Africa. With tailor-made products and clever marketing strategies, they can exploit huge growth potential.