Athletic Brewing Company, America’s largest nonalcoholic brewery, is significantly expanding its presence in San Diego to meet the rising demand for nonalcoholic beer.
With operations in both San Diego and Connecticut, Athletic Brewing is at the forefront of the booming NA beer market.
Growing Demand and Strategic Investments
Athletic Brewing recently raised $50 million in equity financing led by General Atlantic, doubling its valuation to $800 million. This investment will be used to increase production capacity and expand product offerings globally, including the acquisition of Ballast Point’s brewing facility in Miramar, San Diego.
This facility, the largest in San Diego, will undergo renovations to include a new packaging line and enhancements to the brewhouse, cellar, and lab.
Once operational, Athletic Brewing expects to double its U.S. brewing capacity.
Impressive Market Growth
According to NielsenIQ data, January sales of nonalcoholic beer in San Diego surged by 49% compared to the previous year, reaching $519,556—more than 250% higher than in 2020. Nationally, while overall beer sales remain flat, the nonalcoholic beer segment is thriving.
Athletic Brewing holds over 19% market share in the nonalcoholic beer category and drives 32% of its growth.
Athletic Brewing’s Rise
Founded in 2018, Athletic Brewing has quickly ascended the ranks to become the 10th largest U.S. craft brewery and the 20th largest U.S. brewing company overall, despite exclusively offering nonalcoholic options. TIME magazine recognized the brewery as one of the 100 Most Influential Companies of 2024.
The company’s success is attributed to its innovative brewing process, which produces fully fermented nonalcoholic beers that rival traditional beers in taste.
This commitment to quality has earned Athletic Brewing a loyal customer base, making it the best-selling beer brand at Whole Foods, outpacing even alcoholic options.
Shifting Consumer Preferences
The rise of Athletic Brewing mirrors a broader shift in consumer behavior towards healthier lifestyles. Recent Gallup data shows a decline in alcohol consumption, particularly among younger adults.
Only 62% of adults under 35 report drinking alcohol, down from 72% two decades ago. This trend is fueled by increased health consciousness, with a focus on longevity and better sleep.
Industry Impact
The growing popularity of nonalcoholic beers has not gone unnoticed by established beer companies. Giants like Heineken, Constellation Brands (Corona), Anheuser-Busch (Budweiser), and Diageo (Guinness) have all introduced nonalcoholic options to their portfolios.
The Future of Nonalcoholic Beer
Market research firm Fact MR projects that the global nonalcoholic beer market will grow by 7.2% annually from 2023 to 2033, reaching a market volume of $40 billion by 2033. The demand for healthier, lower-calorie alternatives to traditional alcoholic beverages drives this growth.
Innovations in Brewing Technology
Advancements in brewing technology have significantly improved the taste and quality of nonalcoholic beers.
Companies like ABV Technology and Octopi Brewing (now owned by Asahi) are leading the way to help new NA beer brewers create great-tasting brews.
Browse our list of the best non-alcoholic craft beers on the market or sample a variety of hard-to-find brews with our non-alcoholic beer-of-the-month subscription to discover your next favorite NA beer.
