Athletic Brewing's Non-Alcoholic Beer Boom: Big Growth Ahead

Forbes

02-07-2025

The core lineup of Athletic Brewing Company. Athletic Brewing Company
In an era when the traditional beer market continues to contract under the weight of shifting consumer preferences, declining alcohol consumption, and fierce competition from ready-to-drink cocktails and cannabis beverages, one company is defying the trend and redefining success: Athletic Brewing Company.
Now ranked as the eighth-largest craft brewery and 18th largest overall brewery in the United States— up two spots from the previous year — Athletics' rise is a case study in what happens when smart strategy, cultural timing, and visionary execution converge. At a time when most brewers are fighting for survival, this non-alcoholic (NA) beer pioneer is celebrating the production of its one-millionth barrel, completing its fourth production facility, and capturing more shelf space and consumer attention than ever before.
Founded just seven years ago by Bill Shufelt and John Walker, Athletic Brewing emerged from a simple but audacious premise: modern adults deserve high-quality, full-flavored non-alcoholic beer that fits their increasingly mindful lifestyles. Today, that idea has become a national movement, one that grew 27% in 2024 and is forecast to reach $5 billion in the US by 2028, according to IWSR data.
The co-founders of Athletic Brewing Company John Walker and Bill Shufelt. Athletic Brewing Company
"Our emergence as a leader in the NA category isn't the result of any one factor," says Shufelt. "It's the compounding effect of sustained investments in manufacturing, marketing, innovation, and our team."
Those investments include more than $100 million invested in state-of-the-art brewing facilities on both coasts, including the repurposed former Ballast Point brewery in San Diego, which will come online this August. With this expanded capacity of over 1.2 million barrels, Athletic is ready to meet demand far beyond the nearly 400,000 barrels it produced in 2024.
With only about 20% brand awareness and peak distribution for its top-performing SKU sitting at just 38%, Athletic sees wide-open terrain ahead. Its team is executing a savvy multi-pronged marketing approach that blends broad-scale campaigns with hyper-local precision. This includes strategic media spending, cultural partnerships, and on-the-ground activations at festivals such as BottleRock and La Onda.
'We shine in person,' says Andrew Katz, CMO for Athletic Brewing Company. 'Getting cans into hands at those peak life moments, whether that's a marathon finish line or a live music set, is where curiosity turns into brand loyalty.'
Athletic Brewing Beers at IRONMAN. Athletic Brewing Company
Their dual strategy is built around two pillars: "moments of participation" and "moments of enjoyment." The former includes high-performance events like IRONMAN, Spartan Races, and the Leadville 100. The latter spans over 100 Live Nation venues, MLB's Seattle Mariners, the NBA champion runner-up Indiana Pacers, and international soccer matches at Arsenal's Emirates Stadium. They even have inked NIL deals with star college athletes. The approach ensures Athletic is both present and relevant wherever people gather to push their limits or celebrate life. A Category-Expanding Force
Unlike many trends in the alcohol space that cannibalize existing categories (hard seltzers drawing from light beer drinkers, for example), Athletic is additive. By appealing to drinkers and non-drinkers alike, it's expanding the beer aisle itself. A consumer who once had alcohol only on weekends can now enjoy a guilt-free, award-winning brew daily.
Athletic's role as a "chaser, pacer, and replacer" positions it as a flexible option, not just for abstainers, but for moderating consumers seeking balance without compromise. "This is a positive-sum revolution," says Shufelt. "We're not replacing drinking occasions — we're creating new ones." The Long Game: Innovation and Impact
Shufelt and Walker's willingness to take the long road is paying off. Their in-house R&D program produces over 50 new brews annually, a pace that keeps the brand fresh and fuels a continuous feedback loop from fans. With innovations like IPA-inspired hop bombs, rich stouts, and citrusy radlers, the company has made it clear that flavor doesn't need fermentation.
But the brand's vision extends beyond beer. Through its 'Two For The Trails" grant program — the largest environmental initiative in craft brewing — Athletic is donating up to $2 million annually to preserve outdoor spaces, with a total of $6.3 million given since 2018. It's not just a feel-good story; it's a values-first foundation that resonates with a new generation of consumers. Positioned to Lead a Growing Segment
While the beer industry contracts, the NA segment is expanding, and Athletic is setting the pace. Shufelt believes NA beer will surpass 10% of total beer sales within the next decade. According to Shufelt, some grocery chains are already exceeding that threshold, highlighting the unlimited short-term ceiling for NA beer.
Globally, the potential is just beginning to unfold. Athletic is already selling in Canada, the UK, and select European markets, with more international expansion on the horizon. To help fuel its growth, the company announced its latest funding round, a Series D investment of $68 million, in July 2024, bringing its total funding to $251 million across 11 rounds since its founding.
Athletic Brewing Company beers on the shelf at retail. Athletic Brewing Company
Those funds are helping Athletic Brewing continually expand its retail footprint, meet growing demand with new production facilities, and position the brand in front of consumers. It doesn't seem likely that the brand will surrender its position at the top of the charts by resting on its laurels. The Verdict
In many ways, Athletic Brewing is following a similar trajectory as early movers in the hard seltzer wave — but with greater cultural staying power. By staying laser-focused on product quality, authentic partnerships, and long-term brand building, it has established a dominant position in a segment that's still in its infancy.
Unlike hard seltzers, which peaked quickly, the non-alcoholic movement is rooted in fundamental shifts: wellness, moderation, and mindfulness. And for Athletic, that's not just a business opportunity — it's a belief system.
'We've intentionally invited both drinkers and non-drinkers alike into the world of modern adult beverages. In many cases, this means recruiting drinkers back to the beer aisle and expanding into new populations. At the same time, we're giving everyone the option to enjoy a great-tasting adult alcohol alternative more often,' says Shufelt. 'By positioning Athletic as a chaser, pacer, and replacer, we're able to appeal not only to those who abstain from alcohol altogether but also to those who are looking to moderate their consumption. We're still in the early innings of what's possible for Athletic and the broader NA category, and we couldn't be more excited." \
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