Britain has emerged as one of the most dynamic places for sales of low and no-alcohol drinks, with a sharp increase in new product launches and growth forecasts outstripping many other markets.
According to data from IWSR, the drinks consultancy, overall sales volumes are split fairly evenly between non-alcoholic and low-alcohol products, although zero-alcohol sales have driven most of the expansion of the past five years.
While the total market in the UK has grown at a compound annual rate of 9 per cent since 2018, no-alcohol volumes jumped by 21 per cent, well ahead of the 1 per cent increase of the low-alcohol category.
IWSR said that no-alcohol volumes had overtaken low-alcohol last year, with most of the product innovation and consumer demand focused on the zero-alcohol category.
Recent entrants to the British market include the Athletic Brewing Company, an American business launched by Bill Shufelt, a fitness enthusiast, in 2017, while Guinness 0.0 was launched in 2021.
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In the run-up to Christmas, Ocado reported a significant rise in sales of no and low-alcohol drinks. The online supermarket said that sales of Nozeco sparkling wine were up by 83 per cent year-on-year and of alcohol-free cider up by 24 per cent as more 18 to 34-year-olds turned to so-called no/low products for the holiday season.
Susie Goldspink, at IWSR, said: “The main drivers for choosing no and low-alcohol drinks remain moderation and the pursuit of a healthy lifestyle.”
The drinks consultancy is predicting compound annual growth in volumes of 7 per cent from 2022 to 2026, with low-alcohol growing at 3 per cent and no-alcohol achieving growth of 10 per cent.
According to IWSR’s analysis of ten key markets, including Australia, Canada, Germany and South Africa, the market value of low and no-alcohol products last year rose from $8 billion to more than $11 billion.
Goldspink said that no-alcohol products were increasing their market share in most countries, thanks to improved taste and production techniques and a diversification of consumption occasions.
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Most of the world’s top brewers now produce non-alcoholic versions of their most popular brands, including Heineken, Carlsberg, Beck’s and Budweiser, although in some cases consumers have proved to be ambivalent about the taste.
