Changing Consumer Preferences in the U.S. Beer Market: Anheuser-Busch InBev's Equity Investment Potential

The U.S. beer market is undergoing a seismic shift driven by evolving consumer preferences, with health-conscious trends, premiumization, and the rise of non-alcoholic options reshaping industry dynamics. For investors, Anheuser-Busch InBev (ABI) stands at a critical juncture, balancing declining traditional beer volumes with strategic pivots toward innovation. This analysis evaluates ABI's equity investment potential in light of these trends, supported by recent financial data and analyst projections.

Market Trends: A Shifting Landscape

Craft beer, once a symbol of disruption, now faces its own challenges. While its volume declined by 4.1% in the first half of 2025, it retains a loyal consumer base, with 9.8% of legal drinking-age adults consuming craft beer in the past 30 days as of 2024Craft beer mid-year 2025 market data, [https://www.beveragedaily.com/Article/2025/07/25/craft-beer-mid-year-2025-market-data/]^[1]. However, the broader beer market is witnessing a pivot toward health-conscious alternatives. Low-alcohol, non-alcoholic, and gluten-free beers are gaining traction, fueled by the "sober-curious" movement and advancements in brewing technologyUnited States Beer Market Report 2025, [https://www.globenewswire.com/news-release/2025/01/29/3017302/0/en/United-States-Beer-Market-Report-2025-Expansion-of-Non-Alcoholic-and-Low-Alcohol-Beers-Premiumization-of-Beer-Diversification-of-Flavors-and-Styles-Competition-Forecast-Opportuniti.html]^[2].

Premiumization is another key trend. Consumers are increasingly willing to pay for high-quality, artisanal beers, with super-premium segments growing at high single-digit rates in major markets like California and Texas2025 State of the Beverage Industry, [https://www.bevindustry.com/articles/97625-2025-state-of-the-beverage-industry-beer-market-leans-into-innovation]^[5]. This shift aligns with a broader cultural emphasis on quality and experience, particularly among millennials and Gen Z.

ABI's Strategic Response: Innovation and Adaptation

ABI has positioned itself to capitalize on these trends through a dual strategy: expanding its non-alcoholic portfolio and leveraging premiumization. The company's non-alcoholic brands, including Corona Cero, Budweiser Zero, and Michelob Ultra Zero, have seen remarkable growth. In Q2 2025, global non-alcoholic beer sales surged 33%, with U.S. revenue from Bud, Busch, and O'Doul's reaching $117.42 million in 2023AB InBev Counters Sales Dip with Non-Alcoholic and Digital Push, [https://www.drinks-times.com/2025/07/bm32mt1azt16/]^[3].

ABI's efforts to destigmatize non-alcoholic beer are also noteworthy. By aligning Corona Cero with high-profile events like the 2024 Paris Olympics, the company is normalizing non-alcoholic consumption in social settingsAB InBev Counters Sales Dip with Non-Alcoholic and Digital Push, [https://www.drinks-times.com/2025/07/bm32mt1azt16/]^[3]. Additionally, ABI is expanding into new consumption occasions, such as health-focused gatherings, to broaden its appealAB InBev Counters Sales Dip with Non-Alcoholic and Digital Push, [https://www.drinks-times.com/2025/07/bm32mt1azt16/]^[3].

In the premium segment, ABI is leveraging its portfolio of imported beers, particularly Mexican imports like Corona and Modelo, which resonate with younger consumers seeking unique experiences2025 State of the Beverage Industry, [https://www.bevindustry.com/articles/97625-2025-state-of-the-beverage-industry-beer-market-leans-into-innovation]^[5]. These brands have driven growth in the super-premium category, offsetting declines in standard beer volumes2025 State of the Beverage Industry, [https://www.bevindustry.com/articles/97625-2025-state-of-the-beverage-industry-beer-market-leans-into-innovation]^[5].

Financial Performance and Market Position

ABI's financials reflect its strategic agility. Despite a 1.9% global volume decline in Q2 2025, the company offset this with 33% revenue growth in its non-alcoholic portfolioAB InBev Counters Sales Dip with Non-Alcoholic and Digital Push, [https://www.drinks-times.com/2025/07/bm32mt1azt16/]^[3]. The U.S. non-alcoholic beer market is highly competitive, but ABI dominates with a combined $117.42 million in sales from its three flagship brands, outpacing Heineken's $77.45 millionUnited States Beer Market Report 2025, [https://www.globenewswire.com/news-release/2025/01/29/3017302/0/en/United-States-Beer-Market-Report-2025-Expansion-of-Non-Alcoholic-and-Low-Alcohol-Beers-Premiumization-of-Beer-Diversification-of-Flavors-and-Styles-Competition-Forecast-Opportuniti.html]^[2]. However, Athletic Brewing's rapid growth—capturing 17% of U.S. non-alcoholic beer volume—highlights the need for sustained innovationCraft beer mid-year 2025 market data, [https://www.beveragedaily.com/Article/2025/07/25/craft-beer-mid-year-2025-market-data/]^[1].

Globally, ABI's non-alcoholic beer segment is projected to grow at a 7.9% CAGR from 2025 to 2035, driven by health awareness and lifestyle trendsNon-Alcoholic Beer Market Report 2025, [https://www.globenewswire.com/news-release/2025/05/08/3076922/28124/en/Non-Alcoholic-Beer-Market-Report-2025-E-Commerce-Urbanization-and-Health-Trends-Drive-Growth-Despite-Regulatory-Hurdles-Forecasts-to-2029-and-2034.html]^[4]. North America, already the largest market for non-alcoholic beer, is expected to maintain strong growth, accounting for 29.32% of global sales in 2024Non-Alcoholic Beer Market Report 2025, [https://www.globenewswire.com/news-release/2025/05/08/3076922/28124/en/Non-Alcoholic-Beer-Market-Report-2025-E-Commerce-Urbanization-and-Health-Trends-Drive-Growth-Despite-Regulatory-Hurdles-Forecasts-to-2029-and-2034.html]^[4].

Analyst Projections and Investment Outlook

Analyst sentiment toward ABI is cautiously optimistic. As of September 2025, 10 Wall Street analysts rate the stock as a "Buy" or "Strong Buy," with a consensus price target of $71.50—implying a 14.91% upside from its current price of $62.22AB InBev Counters Sales Dip with Non-Alcoholic and Digital Push, [https://www.drinks-times.com/2025/07/bm32mt1azt16/]^[3]. Goldman Sachs has set the highest price target at $88.00, reflecting confidence in ABI's ability to navigate market shifts2025 State of the Beverage Industry, [https://www.bevindustry.com/articles/97625-2025-state-of-the-beverage-industry-beer-market-leans-into-innovation]^[5].

However, challenges remain. ABI acknowledged it is "off track" to meet its 2025 target of having 20% of global beer volume from non-alcoholic and low-alcohol products, as it stood at just over 6% as of 2022Craft beer mid-year 2025 market data, [https://www.beveragedaily.com/Article/2025/07/25/craft-beer-mid-year-2025-market-data/]^[1]. This underscores the need for continued investment in R&D and marketing to stay ahead of competitors.

Conclusion: A Calculated Bet on the Future

ABI's equity investment potential hinges on its ability to balance declining traditional beer sales with growth in non-alcoholic and premium segments. While the company has made strides in innovation and market positioning, execution risks—such as competition from craft breweries and shifting consumer preferences—remain. For investors, ABI represents a calculated bet on the future of beer, where health-conscious and premium trends are likely to dominate. With analyst projections and market dynamics aligning, ABI's strategic pivot positions it as a compelling, albeit not risk-free, investment opportunity.