In recent months, the Middle East has seen a significant shift towards non-alcoholic beers, driven by health concerns and changing consumer preferences. Mohammad Abdelazeem, a 35-year-old Egyptian, exemplifies this trend, having switched from consuming 7-8 cans of Pepsi daily to 3-4 cans of Moussy and Fayrouz, both popular non-alcoholic beer brands. This change reflects a broader movement in the region, where alcohol-free beer sales are rising, partly due to perceptions of US brands like Pepsi and Coca-Cola as pro-Israel amid the ongoing Gaza conflict.
Major beverage companies are responding to this trend. AB InBev launched Corona Cero in Saudi Arabia in the first quarter of 2024, while Heineken reported a revenue increase of over 40% in Egypt during the first half of 2024, largely attributed to the popularity of Fayrouz. Carlsberg has also begun local production of Moussy in Egypt as part of its strategy to tap into this growing market. Although executives acknowledge that zero-alcohol beers currently represent a small revenue segment, they see significant growth opportunities ahead. However, cultural acceptance of non-alcoholic beer is expected to take time as traditional beverage preferences remain strong in the region.
This trend towards non-alcoholic options aligns with a global movement towards healthier beverage choices. In Europe and North America, the market for non-alcoholic or low-alcohol drinks is now valued at over $13 billion, with similar growth patterns emerging in the Middle East. As consumers become more health-conscious, the demand for alternatives to sugary sodas and traditional alcoholic beverages is likely to continue rising.
In addition to the Middle East's shift, global brands like Clearmind are also expanding their offerings. Clearmind, a South African company, has partnered with a global distributor to roll out its alcohol substitute product, Sobre, which mimics the taste and effects of alcohol without the negative side effects. This product aims to target health-conscious consumers looking for alternatives to traditional alcoholic beverages. The partnership will enable Clearmind to expand its distribution network and reach a wider audience, with plans to launch in various countries, including the United States, Canada, and the United Kingdom, in the coming months. [eedd931e][988518be]