Beer drinkers are thirsting for nonalcoholic brews in North Carolina

• These days young Americans — those ages 18-34 — are more likely to say alcohol presents health risks. Consumption among that age group has declined in recent years, a recent Gallup survey found.

Driving the news: January is a month during which many consumers rethink their relationship with alcohol — at least temporarily.

What they're saying: "The demand for N/A products is growing [in North Carolina]," Lisa Parker, executive director at NC Craft Brewers Guild, tells Axios. "A lot of our customers are health conscious, especially at the start of the year."

• "We want to be sure as the [N/A] trend grows, we still offer customers that welcoming place to gather and really continue to be that neighborhood gathering hub."

By the numbers: Sales of nonalcoholic beers in Raleigh in January 2024 were up 41.2% compared to 2023, according to data from NIQ.

• January sales were up in Charlotte 42.9% compared to 2023, per NIQ.

The big picture: While alcoholic beer sales have remained fairly flat, nonalcoholic beer sales are on the rise nationwide.

Between the lines: In Charlotte, Resident Culture in early 2024 launched its first nonalcoholic beer, called NARC — Non-Alcoholic Resident Culture. Since then, demand for the various NARC beers has been strong with each new release, the brewery's co-founder, Amanda McLamb, tells Axios.

• From January to September 2024, the local brewery distributed various NARC products to 156 retailers throughout North Carolina.
• The brand saw an average 690% increase in NARC sales (all brands) following each new batch release.
• In October, Resident Culture's NARC IPA won a coveted gold medal at the Great American Beer Festival in the pale nonalcoholic beer category.

Zoom out: Other North Carolina brewers and entrepreneurs are recognizing the demand for N/A or alcohol alternatives.

• Wise Man in Winston-Salem, for instance, brews an N/A lager called Scoop Dogg.
• Four Saints in Asheboro makes a "damp ale" called Humidum (which translates to "damp" or "moist") that's 1.6% alcohol.
• NoDa Brewing in Charlotte launched an alcohol-, calorie- and sugar-free hop water called Hop2O in 2023.
• In 2021, an alcohol-free bottle shop opened in Asheville called Nolo.
• "Innovation is what we do. It's a natural movement to continue that innovation with these alternative options," Parker says.

Yes, but: Brewing N/A beer is more complex than brewing traditional beer, which is why all breweries aren't necessarily jumping on the trend. Making beer without alcohol, or removing the alcohol from the beer, requires a different process and some additional equipment, Parker notes.

• One popular product that many breweries, bottle shops and grocers throughout North Carolina sell in cans: Athletic Brewing, a California brand that's fueling the nation's N/A beer craze, Axios San Diego's Kate Murphy reported.

Catch up quick: Athletic launched its nonalcoholic, craft-brewing facilities in 2018 and was named one of TIME magazine's 100 Most Influential Companies of 2024.

• It's now the 10th-largest U.S. craft brewery and 20th-largest U.S. brewer, according to Brewers Association rankings.
• Athletic holds more than 19% market share for nonalcoholic beer and is driving 32% of that category's growth, NIQ data shows.

Fun fact: Whole Foods sells more Athletic beer than any other brand — with or without alcohol — WSJ has reported.

What's next: This month, the NC Craft Brewers Guild launched a "Pour Love into Local" initiative meant to encourage consumers to gather at breweries — especially those in Helene-ravaged western North Carolina — "during the slower winter months," whether it's for craft beer or N/A alternatives.

• With 420 permitted breweries throughout the state, North Carolina is considered a top 10 craft beer state, Parker says. But the winter months, especially when customers can abstain from alcohol, can be tough for the industry.