The global non-alcoholic malt beverages market is expected to represent an incremental opportunity of US$856.2 million by end-2018 over 2017. By product type, the dairy-based non-alcoholic malt beverages segment is expected to register a CAGR of 4.1%.
Non-alcoholic malt beverages and other non-alcoholic drinks are becoming popular as a healthier alternative to alcoholic drinks, FMI notes. Non-alcoholic malt beverages are already very popular in the in the Middle East due to them getting halal certification. Consuming non-alcoholic malt beverages has also become a statement of higher living standards. They also taste good as compared to that of alcoholic beverages, FMI said.
Non-alcoholic malt beverages such as Milo, Vitmalt, and Hollandia Chocomalt have extra nutritional content incorporated, raising their value and changing their positioning to energy drinks.
"Non-alcoholic malt beverages are available in the market in many different flavors so that people get a choice to select their preferred drink. A few non-alcoholic malt beverages resemble beer in taste, and the only difference remains that these non-alcoholic malt beverages contain zero percent alcohol," FMI stated.
"Non-alcoholic malt beverages is also an upcoming trend seen in countries that have an improved economic condition, where the consumption of beverages is a must in social gatherings, and the standard of living is high. The appeal of non-alcoholic malt beverages is also increased due to social media, which is being used by most companies, especially targeting the youth population.
"Women are also seen to be consuming ready-to-drink (RTD) non-alcoholic beverages such as non-alcoholic malt beverages. Women have always been known to try different flavours and experiment with their drinks. Also, the health factor is given importance by women, and non-alcoholic malt beverages, having no alcohol, are proving to be a healthy option," FMI said.
FMI believes that there are untapped markets to focus on, including producing in-country. "There are several regions where malt-based beverages are imported from other countries. This leads to the high cost of premium products, as such, affecting sales in these regions. Companies are focusing on expanding and manufacturing their premium products in these regions itself, leading to comparatively lower costs. Low penetration in a few regions, coupled with the high costs of premium imported products, create an opportunity for manufacturers to expand in such regions," the company said.
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