Why is alcohol-free beer often more expensive than regular beer?

No, no beer excise duty is levied on beer with 0.5 per cent alcohol by volume or less.

The European excise directive defines beer as a product of CN code 2203 with an actual alcoholic strength by volume of more than 0.5 per cent. Anything below falls outside that definition and therefore outside excise. That makes a difference to the brewer's cost price, but it does not automatically lead to a lower price on the shelf.

Beer with 0.5 per cent alcohol by volume or less falls under the 9 per cent VAT rate; above that threshold 21 per cent applies.

For drinks other than beer, the Belastingdienst uses a limit of 1.2 per cent by volume. Alcohol-free wine and alcohol-free gin therefore also fall into the low rate. The difference between the two rates is considerable, yet the prices on the shelf are often close together. The explanation lies in production, not in tax.

Alcohol-free beer requires a process on top of the normal brewing process: slowing down fermentation, or removing the alcohol afterwards.

Nederlandse Brouwers describes three routes. Special yeast at a lower temperature produces only a little alcohol. Heating removes the alcohol but also makes aromas evaporate; these are captured separately and added back later. Membrane filtration presses the beer through a filter and is described by the trade association as a costly and lengthy process, which is why it is used less.

A bottle of alcohol-free beer costs the brewer more in equipment, time and aroma recovery than a regular bottle, and those costs take the place of the excise saved.

A dealcoholisation plant runs only for these beers. Capturing and adding back the aromas after heating is also a separate step. In addition, alcohol-free beers are still made in smaller quantities than their alcoholic counterparts, so fixed costs are spread over fewer bottles.

About one in twelve beers drunk in the Netherlands is alcohol-free.

Nederlandse Brouwers reported growth for 2025 of 13.6 per cent for alcohol-free lager, 25.6 per cent for alcohol-free speciality beer and 6.6 per cent for alcohol-free beer mixes. As volumes rise, the plants are used more efficiently. For small breweries the investment weighs more heavily, because the equipment is spread over fewer bottles.