The rise of non-alcoholic (NA) beer in recent years has been nothing short of meteoric. What once was a niche product, has exploded into a booming industry with an ever-expanding array of brands and flavors.
However, not all NA brewers have found success in this crowded market.
Leader Brewing is one of three top NA beer brands to close their doors in the past year following UK-based Fungtn and Michigan-based Two Roots Brewing just last year.
Leader Brewing: A Veteran-Owned Success Story Cut Short
On September 9, 2024, Florida-based and veteran-owned Leader Brewing made the difficult decision to shut down operations after five years in the business.
In a heartfelt Instagram post, founder Max Green shared the news, expressing gratitude to his customers and reflecting on the challenges of running a small craft NA beer company.
Green’s announcement was candid:
“I’ve been working every angle I could find to continue to make this work, but I need to quit digging and start a new chapter before I get too old… To make all of this work, you need high volume… massive volume… a truckload a month volume. And while we continued to grow, I couldn’t figure out how to grow it fast enough before running out of time.”
Leader Brewing had built a strong reputation, especially for its dark beer, Night Strike, which won bronze at the 2023 Great American Beer Festival in the NA beer category.
But despite these accolades, the financial realities of the business were too steep to overcome.
Green’s decision underscores the sheer scale and distribution required to stay competitive in today’s beverage industry, even for a brand that was steadily gaining recognition.
Fungtn: A Unique Concept Unable to Secure Further Investment
Earlier this year, UK-based Fungtn also announced its closure. In April 2024, founder Zoey Henderson shared on LinkedIn that the decision to shut down came after more than “18 months of unsuccessful attempts to raise further capital to grow the brand in the US and UK.”
Fungtn, launched in 2020, had positioned itself as a unique player in the NA beer space, combining non-alcoholic brewing with myco-adaptogens—medicinal mushrooms thought to boost wellness.
Fungtn’s lineup included innovative offerings such as Chaga Lager, Reishi Citra Beer, Lion’s Mane IPA, Shiitake Dark Lager.
Despite the creativity behind the brand, Henderson’s announcement reflects the difficulties faced by even the most innovative brewers when it comes to securing the investment needed to scale.
Is the NA Beer Market Too Crowded?
The closures of Leader Brewing and Fungtn come at a time when the NA beer market has never been more crowded.
Over the last two years, we’ve seen dozens of new brands emerge, fueled by increased consumer demand for healthier, alcohol-free options. However, the flip side of this rapid growth is that some established brands are now struggling to survive.
In August 2023, another notable player, Two Roots Brewing, a pioneer in the NA craft beer space, also shut its doors. As more brands clamor for a piece of the action, it’s becoming clear that the market is not just competitive—it’s crowded.
The closures of Leader Brewing, Fungtn, and Two Roots raise important questions about the future of NA beer…
Are we starting to see the effects of an oversaturated market?
While consumer interest in non-alcoholic beer continues to rise, it appears that only those brands with the right combination of capital, distribution, and differentiation will be able to thrive in the long term.
What’s Next for the NA Beer Industry?
The shutdowns of Leader Brewing and Fungtn may be a sign that the NA beer boom is entering a new phase.
The initial wave of hype and excitement around non-alcoholic beer led to an explosion of new brands, but the reality of running a sustainable business in this sector is now coming to light.
In an industry that demands high-volume sales and major distribution, smaller and niche brands will likely need to find new ways to adapt, whether through partnerships, increased funding, or finding untapped market niches.
For consumers, these closures are a reminder that while innovation is abundant, the NA beer market is still evolving.
As the dust settles, we may see fewer but stronger players emerge—brands that can scale, maintain quality, and carve out their space in an increasingly crowded industry.
The recent closures of Leader Brewing and Fungtn underscore the challenges faced by NA beer brands in an increasingly competitive market. While the demand for non-alcoholic beer remains strong, it’s clear that only brands with the right resources and strategies will continue to grow and succeed.
As the industry matures, both brewers and consumers will be watching closely to see what the future holds for the ever-expanding world of NA beer.
In the meantime, let’s raise a glass to the innovation and passion of breweries like Leader Brewing and Fungtn, whose contributions have undoubtedly left a mark on the NA beer landscape.
