UK Alcoholic Drinks Industry Review 2025
Building associations with relaxation and refreshment are key for alcohol brands to drive purchase for both at-home and out-of-home occasions.
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EXECUTIVE SUMMARY
- Opportunities for the alcoholic drinks market
- Amid cautious consumer spending, brands must highlight what makes their drinks special
- A marketing focus on at-home occasions remains relevant in 2025
- Portray pubs and bars as the heart of the community to entice back lapsed users
- Market dynamics and outlook
- Market size and forecast
- Market predictions for alcoholic drinks
- On-trade loses further ground to retail in 2024
- Graph 1: value sales of alcoholic drinks, by on- and off-trade, 2022-24
- Beer leads the market; volume sales fall in all segments in 2024
- Graph 2: total value sales of alcoholic drinks, by segment, 2022-24
- Alcohol market leaders lose out as shoppers switch to rival brands and own-label
- Graph 3: retail value sales of alcoholic drinks, by top 10 brands, 2022/23-2024/25
- What consumers want and why
- Relaxation and refreshment are valued for all occasions
- Graph 4: qualities sought in drinks by occasion, 2025
- Eight in 10 adults drink alcohol; beer and still wine have the highest usage
- Graph 5: usage of alcoholic drinks, by type, 2025
- Two thirds have reduced spending on alcoholic drinks, with under-35s especially likely
- Graph 6: steps taken to reduce spending on alcoholic drinks, 2025
- Going to pubs and bars is widely seen as frivolous in the current financial climate, especially among under-35s
- Graph 7: behaviours relating to alcoholic drinks, 2025
- Innovation and marketing
- Examples of new product launches in the alcoholic drinks category
- Advertising spend on alcoholic drinks falls in 2024
- Graph 8: total above-the-line, online display and direct mail advertising on alcoholic drinks, by top five advertisers, 2021-25
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MARKET DYNAMICS AND OUTLOOK
- Market size
- Alcoholic drinks experience volatile value and volume sales in 2019-24
- Graph 9: total value sales of alcoholic drinks, 2019-24
- Graph 10: total volume sales of alcoholic drinks, 2019-24
- Alcoholic drinks volume sales fall faster than values in 2024
- Market forecast
- Improved on-trade performance to boost value sales in 2027
- Volume sales to pick up in 2027; growing alcohol moderation will hinder sales
- Further, though slowing, inflation and declining volumes predicted for 2024-29
- Channels to market
- Alcoholic drinks value and volume sales decline in both the on- and off-trade in 2024
- Graph 11: volume sales of alcoholic drinks, by on- and off-trade, 2022-24
- Graph 12: value sales of alcoholic drinks, by on- and off-trade, 2022-24
- On-trade channel continues to struggle in 2024
- Market segmentation
- Beer leads the alcohol category; volume sales decline in all segments in 2024
- Graph 13: total value sales of alcoholic drinks, by segment, 2022-24
- Market share
- Leading alcohol brands in retail lose sales as shoppers cut back
- Graph 14: retail value sales of alcoholic drinks, by top 10 brands, 2022/23-2024/25
- Mid-market beer brands lose out as shoppers continue to trade up and down
- Graph 15: growth/decline in retail value and volume sales of selected beer brands, 2024/25*
- Social media buzz boosts Guinness
- Leading spirits brands lose value and volume sales in 2024/25
- Graph 16: decline in retail value and volume sales of top two spirits brands, 2024/25*
- Market drivers
- Consumers’ weakened sense of financial wellbeing will impede category sales in 2025
- Graph 17: the financial wellbeing index, 2016-25
- Consumers’ financial confidence remains down on 2021
- Graph 18: the financial confidence index, 2016-25
- Inflation in beer, wine and spirits slows in 2024 but picks up slightly in Q1 2025
- Graph 19: RPI inflation for beer, wine & spirits and all items, 2021-25
- Pub closures continue in 2024
- Lacklustre summer in 2024 drives down sales in multiple segments
- Graph 20: total hours of sunshine, by season, 2022-25
- Ageing UK population will slow category growth
- Graph 21: trends in the age structure of the population, 2020-25 and 2025-30
- Increased alcohol moderation erodes category sales
- Graph 22: alcohol reduction and non-usage in the last 12 months, 2022-25
- DRS to be introduced in 2027
- The EPR scheme comes into force…
- …but is met with resistance from businesses
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WHAT CONSUMERS WANT AND WHY
- Qualities sought in drinks by occasion
- Relaxation and refreshment are key for all occasions
- Graph 23: qualities sought in drinks by occasion, 2025
- Focus on relaxation is crucial for all occasions
- Three quarters of adults look for drinks to be relaxing
- Build associations with activities people use to relieve stress
- Low-/no-alcohol variants are a good fit for emotional wellbeing messages
- Refreshment is widely sought for all occasions, but soft drinks pose strong competition
- Promote long, chilled serves to strengthen associations with refreshment
- Graph 24: perceptions of selected types of alcoholic drinks as refreshing, 2023
- Brands use heat-sensitive labels to encourage chilled serves
- Traditional drinks mixing beer with soft drinks hold promise for boosting refreshing associations
- Usage of alcoholic drinks by type
- Beer and still wine lead on usage
- Graph 25: usage of alcoholic drinks, by type, 2025
- Usage of some alcoholic drinks peaks among under-45s, others among over-55s
- Graph 26: usage of alcoholic drinks, by type, by age group, 2025
- Steps taken to reduce spending on alcoholic drinks
- Most buyers have looked to reduce spending on alcohol…
- Graph 27: steps taken to reduce spending on alcoholic drinks, 2025
- …and many of these changes will be long-lasting
- Graph 28: whether alcohol buyers consider their money-saving methods permanent or temporary, 2025
- Under-35s are more likely to have reduced spending, but over-55s are more likely to think changes will be permanent
- Graph 29: steps taken to reduce spending on alcoholic drinks, by age group, 2025
- Only one in four have traded down
- Brands must highlight what makes their products special
- Focus on enjoyment and inimitable taste to drive purchase while consumers limit alcohol consumption
- Portray drinks’ wealth of flavours as making rare drinking occasions more enjoyable
- Smaller formats can help to make wine/spirit brands more accessible
- Call out spirits’ number of servings per bottle more prominently
- Targeting gifting occasions remains relevant in 2025
- Target at-home occasions to drive purchase in 2025
- Switching from on-trade to retail is highest among under-35s
- A marketing focus on at-home occasions remains key in 2025
- Good opportunities for RTDs to benefit as an alternative to out-of-home drinks
- Advise on how to make at-home occasions more fun
- Suggest aesthetically appealing serves to enhance the drinking experience
- Behaviours relating to alcoholic drinks
- Four in 10 alcohol drinkers see going to pubs and bars as frivolous in the current financial climate
- Graph 30: behaviours relating to alcoholic drinks, 2025
- Evoke emotional associations to entice people back to the on-trade
- Under-35s are especially likely to see going out to pubs/bars as frivolous
- Graph 31: views that it is frivolous to go out to pubs/bars for drinks in the cost-of-living crisis, by age group and how people describe their household finances, 2025
- Promote pubs as the heart of the local community
- Spotlight locally sourced food and drink
- Highlight support for local good causes
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INNOVATION AND MARKETING TRENDS
- Launch activity and innovation
- Low-/no- and lower-alcohol launches continue
- Brands and retailers continue to explore sustainable packaging options for alcoholic drinks
- Brands and retailers highlight their sustainable practices
- Fruit flavours remain a key trend in alcoholic drinks
- Brands and own-label continue to explore dessert flavours
- Celebrity launches continue
- Leading alcohol brands continue to extend into RTDs
- Advertising and marketing activity
- Advertising spend on alcoholic drinks falls in 2024; Diageo remains the leading advertiser
- Graph 32: total above-the-line, online display and direct mail advertising on alcoholic drinks, by top 5 advertisers, 2021-25
- Guinness takes the largest share of Diageo’s advertising in 2024
- Alcohol brands continue to target at-home occasions in 2024-25
- ‘Travel through flavour’ theme remains key to alcoholic drinks advertising in 2024
- Alcohol brands continue their sports partnerships in 2024-25
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APPENDIX
- Supplementary data
- Appendix – market segmentation
- Market share – values
- Market share – volumes
- Market forecast data and methodology
- Market forecast and prediction intervals (value)
- Market forecast and prediction intervals (volume)
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Consumer research methodology
- Nielsen Ad Intel coverage
Building associations with relaxation and refreshment are key for alcohol brands to drive purchase for both at-home and out-of-home occasions. Some 74% of adults would choose a relaxing drink, and 78% a refreshing one, for either drinking at home on an ordinary evening, a special occasion at home or out in a pub/bar/restaurant.
Alcohol moderation has grown since 2022 and is expected to grow further in the coming years, eroding category volume sales. This underlines the need for further NPD in low-/no-alcohol versions in order to maintain overall sales.
A marketing focus on at-home occasions remains relevant for alcohol brands in 2025 as constrained household incomes continue to curb out-of-home socialising. Appealing to people’s community spirit is also needed by on-trade operators to combat views of pub-going as frivolous in the current financial climate.
This report looks at the following areas:
- The short- and long-term impact of the cost-of-living crisis and price inflation on value and volume sales of alcoholic drinks in the on- and off-trade
- Qualities sought in drinks for various at-home and out-of-home occasions, including on their own and with a meal at home on an ordinary evening, special occasion at home and in a pub/bar/restaurant
- Steps consumers have taken to reduce spending on alcoholic drinks in the 12 months to March 2025, including buying less, switching from on-trade to retail and trading down to own-label, and whether they expect these changes to be temporary or permanent
- Trends in launch activity in the alcoholic drinks category in 2024 and Q1 2025
Relaxation and refreshment are key for all drinking occasions. A marketing focus on at-home occasions remains relevant amid cautious consumer spending.
Alice Baker, Food and Drink Analyst
Market Definitions
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). The Report excludes soft drinks such as carbonated soft drinks and juices.
Both on- and off-trade sales are included in the total market size.
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