To Beer Or Not To Beer: Muslim Consumers Could Transform The Non-alcoholic Drinks Market

Stephen Cribbett
Sep 7, 2018 · 3 min read

Alcohol and Islam are joined at the hip. Islamic scholars first began distilling alcohol back in the 8th Century and they gave us the word we still use today (alcohol — derived from the word al-khul which means ‘body eating spirit). But, as you’ll know, alcohol consumption is forbidden (haram) in Islam, and this is stopping brands engagement of the Muslim population when it comes to alcohol.

Herein lies the golden opportunity for the drinks brands such as Diageo, Heineken and InBev who are investing heavily in non-alcoholic drinks and the growth in a new category. The modern consumer doesn’t want to compromise on taste, atmosphere, or experience when selecting the non-alcoholic variety. But in particular, Muslims have different tastes, needs, wants and behaviours to many other social groups and they represent a very significant and growing proportion of the global community.

This is the driver of what we see as the biggest opportunity in the drinks industry right now.

The non-alcoholic beer market has grown exponentially in recent years, as sales of, for example, stronger beers has seen a decline. The extent of this growth has estimates ranging from 16% to 58% over the last 12 months, but one thing is clear: it’s a market that has large, sustained growth potential. In fact, the global non-alcoholic wine and beer market is expected to be worth US$25 billion by 2024.

The non-alcoholic wine and beer market could be worth US$25 billion by 2024

This growth is often attributed to greater health consciousness and well-being among millennials, as well as parents and middle-aged professionals who working harder than ever and need to be clear-headed for work. There are, however, other markets and segments that should be targeted and chief among them the Muslim consumer.

Whilst drinking alcohol is forbidden in the Qur’an, global research shows that the areas with the most significant growth rates for alcohol-free beer are Africa and the Middle-East (www.beveragedaily.com), two regions with distinctly large Muslim populations. That suggests that tapping into the local Muslim market could prove a huge opportunity in the UK and across other parts of Europe as well.

Why?

Firstly, the number of Muslims in the UK is set to soar, with it expected to more than triple in the next 30 years, reaching 13.1 million in 2050.

Secondly, the Muslim population has a much younger age profile than the general population and is more upwardly mobile economically.

Third, a growing number of Muslim men and women are professionals who want to participate fully in British social and professional life while being respectful to their faith and culture: being able to go to the pub with colleagues and to socialise with friends while drinking non-alcoholic beer could help remove some of the unease and alleviate the sense of trepidation many Muslims feel in such scenarios.

As things stand, many second and third generation Muslims find themselves split because a simple decision over a drink has the potential to be seen — by them as well as by their peers — as a statement about their (lack of) integration in mainstream British culture. The introduction of non-alcoholic beverages, coupled with tailored and targeted advertising and marketing, could open doors for brands and promote greater cohesion.

At Versiti, we think this is a significant opportunity worth exploring. If you need insight, intelligence and ideas to attack this opportunity or create new brands and products you can reach out to us at hello@versiti.co or visit our website, www.versiti.co

Stephen Cribbett

Written by

A cultural and human insight and strategy expert, business founder/owner, with a drive to celebrate greater diversity and inclusion

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