Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

UK Alcoholic Drinks Review market report

“The online channel is likely to benefit from the craft boom in particular, providing an alternative sales outlet for brands other than venues such as pubs/bars and supermarkets.”
– Chris Wisson, Senior Drinks Analyst

This report discusses the following key topics:

  • Craft looks set to continue to dominate the industry’s headlines 
  • Online drinks retailing has marked potential 
  • Beer and cider challenge wine as meal accompaniments

This Report explores usage of, and attitudes towards alcoholic drinks. This includes all types of alcohol, as well as low/non-alcoholic variants of drinks that typically contain alcohol (eg alcohol-free beer).

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Figure 1: Brands’ and private label’s share of sales in the UK alcoholic drinks retail market, by volume and value, 2014/15-2016/17
          • Market factors
            • The return of the squeeze on real incomes
              • Figure 2: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2012-May 2017
            • Private label’s ability to react and adjust stands it in good stead
              • The self-moderation trend is driving premiumisation
                • Companies and brands
                  • Own-label accounts for 14% of alcoholic drink launches
                    • Figure 3: Private label’s share of total launches per category in the UK alcoholic drinks market, 2013-17
                  • A big premiumisation drive for private label wine
                    • Brands dominate adspend
                      • Discounters steadily grow their share of adspend
                        • The consumer
                          • Brands retain a big lead over own-label
                            • Figure 4: Purchasing of branded and own-label alcoholic drinks, by category, May 2017
                          • Consumers are more open to own-label for more casual occasions
                            • Figure 5: Preference for branded and own-label alcoholic drinks, by different occasions, May 2017
                          • The heritage of brands bolsters trust
                            • Figure 6: Perceptions of branded and own-label alcoholic drinks, May 2017
                          • Sampling can help to disrupt taste perceptions
                            • Figure 7: Enticements for buying more own-label alcoholic drinks over branded ones, May 2017
                          • Consumers want it to be clear when a product is own-label
                            • Being made locally can boost the appeal of own-label
                              • Supermarkets should be vocal about their in-house expertise
                                • Figure 8: Attitudes towards branded and own-label alcoholic drinks, May 2017
                              • What we think
                              • Issues and Insights

                                • Being more vocal about the heritage of private label producers is needed to build trust
                                  • The facts
                                    • The implications
                                      • Sampling campaign creating in-store theatre can drum up interest
                                        • The facts
                                          • The implications
                                            • Supermarkets can leverage consumers’ openness to own-label alcohol for casual drinking occasions
                                              • The facts
                                                • The implications
                                                • The Market – What You Need to Know

                                                  • Brands hold a commanding position in the alcoholic drinks market
                                                    • Private label’s share of sales edges upwards
                                                      • Private label poses strong competition for brands in wine
                                                        • The return of the income squeeze and consumer confidence is hit
                                                          • Private label’s ability to react and adjust stands it in good stead
                                                            • The self-moderation trend is driving premiumisation
                                                            • Segment Performance

                                                              • Brands hold a commanding position in the alcoholic drinks market
                                                                • Figure 9: Brands’ and private label’s share of sales in the UK alcoholic drinks retail market, by volume and value, 2014/15-2016/17
                                                                • Figure 10: Share of different drink types in private label and branded alcoholic drinks’ retail volume sales, 2016/17*
                                                              • Private label’s share of sales edges upwards
                                                                • The future for private label looks hopeful
                                                                  • Private label poses strong competition for brands in wine
                                                                    • Figure 11: Private label’s share of value and volume sales in the UK alcoholic drinks retail market, by segment (top 9 in terms of value share), 2016/17*
                                                                  • Private label struggles to compete in beer and cider
                                                                    • Figure 12: Private label’s share of value and volume sales in the UK alcoholic drinks retail market, by segment (the rest in terms of value share), 2016/17*
                                                                    • Figure 13: Percentage point growth in private label’s share of value and volume sales in the UK alcoholic drinks retail market, by segments where private label is gaining share, 2014/15*-2016/17**
                                                                  • Brands extend their lead in spirits
                                                                    • Figure 14: Percentage point change in private label’s share of value and volume sales in the UK alcoholic drinks retail market, by segments in which private label is losing volume share, 2014/15-2016/17*
                                                                  • Private label fares a lot better in RTDs
                                                                  • Market Drivers

                                                                    • The Brexit effect: pushing up prices of imported alcohol
                                                                      • Figure 15: Annual change in RPI of alcoholic drinks, January 2015-June 2017
                                                                    • Domestic alcohol can benefit
                                                                      • Private label’s ability to react and adjust stands it in good stead
                                                                        • The return of the income squeeze
                                                                          • Figure 16: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2012-May 2017
                                                                        • A rise in price-consciousness can benefit private label…
                                                                          • …but many simply cut back
                                                                            • The self-moderation trend is driving premiumisation
                                                                              • The rise and rise of the discounters
                                                                              • Companies and Brands – What You Need to Know

                                                                                • Private label accounts for 14% of alcoholic drink launches
                                                                                  • A big premiumisation drive for own-label wine
                                                                                    • Aldi and Lidl look to more unusual wines
                                                                                      • Tesco and Aldi tap into the low-ABV trend
                                                                                        • Brands dominate adspend
                                                                                          • Discounters steadily grow their share of adspend
                                                                                          • Launch Activity and Innovation

                                                                                            • Private label accounts for 14% of alcoholic drink launches…
                                                                                              • …with a quality over quantity approach helping to grow sales
                                                                                                • Figure 17: Private label’s share of total launches per category in the UK alcoholic drinks market, 2013-17
                                                                                              • One in four private label launches in 2016 were from M&S
                                                                                                • Figure 18: New private label alcoholic drink launches, by company, 2013-17
                                                                                              • A big premiumisation drive for private label wine
                                                                                                • Tesco
                                                                                                  • Morrisons
                                                                                                    • Sainsbury’s
                                                                                                      • Aldi
                                                                                                        • Supermarkets champion English wines
                                                                                                          • Tesco streamlines and expands its own-label wine offering
                                                                                                            • Aldi’s wine range takes cues from craft beer
                                                                                                              • Lidl expands its offering of wine and spirits
                                                                                                                • Lidl introduces seasonal Hortus Summer Gin
                                                                                                                  • Tesco and Aldi tap into the low-ABV trend
                                                                                                                    • Tesco grabs a slice of the frozen cocktail market
                                                                                                                      • Majestic puts a greater emphasis on its own-label wine range
                                                                                                                        • Supermarkets put more focus on sparkling wines in 2017
                                                                                                                        • Advertising and Marketing Activity

                                                                                                                          • Brands dominate adspend
                                                                                                                            • Figure 19: Share of total above-the-line, online display and direct mail advertising expenditure on alcoholic drinks, by type of advertiser, 2013-17
                                                                                                                          • Minimal advertising for own-label ranges
                                                                                                                            • Discounters steadily grow their share of alcohol adspend
                                                                                                                              • Huge growth in adspend from Lidl
                                                                                                                                • Aldi encourages consumers to review its wine on Twitter
                                                                                                                                  • Tesco and Aldi open pop-ups to showcase their private label lines
                                                                                                                                    • Nielsen Ad Intel coverage
                                                                                                                                    • The Consumer – What You Need to Know

                                                                                                                                      • Brands retain a big lead over own-label
                                                                                                                                        • Consumers are more open to own-label for more casual occasions
                                                                                                                                          • The heritage of brands bolsters trust
                                                                                                                                            • Sampling can help to disrupt taste perceptions
                                                                                                                                              • Consumers want it to be clear when a product is own-label
                                                                                                                                                • Being made locally can boost the appeal of own-label
                                                                                                                                                  • Supermarkets should be vocal about their in-house expertise
                                                                                                                                                  • Purchasing of Branded and Own-label Alcoholic Drinks

                                                                                                                                                    • Brands retain a big lead over own-label
                                                                                                                                                      • Figure 20: Purchasing of branded and own-label alcoholic drinks, by category, May 2017
                                                                                                                                                      • Figure 21: Purchasing of own-label alcoholic drinks as a share of total purchasing, by category, May 2017
                                                                                                                                                      • Figure 22: Purchasing of branded and own-label alcoholic drinks, May 2017
                                                                                                                                                    • Own-label is most popular among 25-34s
                                                                                                                                                      • Figure 23: Purchasing of own-label alcoholic drinks as a proportion of total purchasing of alcoholic drinks, by gender and age, May 2017
                                                                                                                                                    • Financially confident consumers are most open to own-label
                                                                                                                                                      • Figure 24: Purchasing of own-label alcoholic drinks as a proportion of total purchasing of alcoholic drinks, by socio-economic group and financial situation, May 2017
                                                                                                                                                    • Own-label is gaining ground
                                                                                                                                                      • More people are cutting back on brands
                                                                                                                                                        • Figure 25: Changes in purchasing of own-label and branded alcoholic drinks, May 2017
                                                                                                                                                    • Preference for Brands versus Own-label by Occasion

                                                                                                                                                      • Gifting is the biggest problem area for own-label…
                                                                                                                                                        • Figure 26: Preference for branded and own-label alcoholic drinks, by different occasions, May 2017
                                                                                                                                                      • …but this is not a dead-end for own-label
                                                                                                                                                        • Own-label can do more to capitalise on seasonal celebrations
                                                                                                                                                          • Consumers are more open to own-label for more casual occasions
                                                                                                                                                            • On-the-go
                                                                                                                                                              • Drinking with meals at home
                                                                                                                                                              • Perceptions of Branded and Own-label Alcoholic Drinks

                                                                                                                                                                • Brands win in terms of taste and quality perceptions
                                                                                                                                                                  • Figure 27: Perceptions of branded and own-label alcoholic drinks, May 2017
                                                                                                                                                                • Own-label can be more vocal about heritage
                                                                                                                                                                  • Heritage is a key driver of trust in brands
                                                                                                                                                                    • Own-brand pushes heritage in food, Co-op’s Chablis is a rare high-profile example in drinks
                                                                                                                                                                      • Brands are seen to lead innovation
                                                                                                                                                                        • Exciting innovation can help set out own-label as unique
                                                                                                                                                                        • Enticements for Buying More Own-label Alcoholic Drinks

                                                                                                                                                                          • Special offers hold the most sway
                                                                                                                                                                            • Figure 28: Enticements for buying more own-label alcoholic drinks over branded ones, May 2017
                                                                                                                                                                          • Sampling can help to disrupt taste perceptions
                                                                                                                                                                            • Sampling can be combined with information sharing
                                                                                                                                                                              • Quality awards hold sway among a quarter
                                                                                                                                                                                • Swap suggestions appeal most to young women
                                                                                                                                                                                • Attitudes towards Branded and Own-label Alcoholic Drinks

                                                                                                                                                                                  • Consumers want it to be clear when a product is own-label
                                                                                                                                                                                    • Figure 29: Attitudes towards branded and own-label alcoholic drinks, May 2017
                                                                                                                                                                                  • Being made locally can boost the appeal of own-label…
                                                                                                                                                                                    • …as can collaborations between supermarkets and distillers/brewers
                                                                                                                                                                                      • Supermarkets should be vocal about their in-house expertise
                                                                                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                          • Abbreviations
                                                                                                                                                                                            • Consumer research methodology

                                                                                                                                                                                            Companies Covered

                                                                                                                                                                                            To learn more about the companies covered in this report please contact us.