2023
9
UK Attitudes towards Low and No-Alcohol Drinks Market Report 2023
2023-08-15T04:04:27+01:00
OX1155113
2195
165771
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Report
en_GB
“The recent hike in alcohol duties is likely add to the alcohol moderation trend already strengthened by the cost-of-living crisis. This offers opportunities for low-/no-alcohol variants, but these are hindered…

UK Attitudes towards Low and No-Alcohol Drinks Market Report 2023

£ 2,195 (Excl.Tax)

Description

This report offers a complete analysis of UK Consumer Attitudes towards Low and Non-Alcoholic Drinks, alongside a five year market outlook and the best recent launch activity and innovation. Below, we’ve summarised the key areas covered and offer handpicked insights from the report itself.

Key Issues Covered in this Report

  • The impact of the cost-of-living crisis on levels of alcohol usage and moderation, and on sales of low- and no-alcohol alternatives to alcoholic drinks.
  • Trends in launch activity for low-/no-alcohol drinks, and opportunities for further innovation.
  • Leading drinks chosen as substitutes for alcoholic drinks when people are moderating their alcohol intake.
  • Consumer attitudes towards alcohol usage and moderation, including interest in the concept of mindful drinking.
  • Top enticements to drink non-alcoholic/alcohol-free drinks, or to drink them more often.

Low-Alcohol and Non-alcoholic Drinks Market Landscape

Consistently strong new product development has driven rapid growth in the low- and no-alcohol drinks market. Growth has slowed, but only slightly, and Mintel estimates that the market will increase by another 11.2% in 2023.

Over half of UK consumers aged 18-34 worry about the effect of alcohol on their emotional wellbeing, and over two-thirds of all alcohol drinkers have the same concern. These concerns are driving consumers towards low-alcohol and non-alcoholic drinks.

Purchase our full report for more information on low and no-alcohol drinks market size, segmentation and share.

Low- and No-alcohol Drinks – UK Consumer Attitudes

Six in ten UK adults avoid or limit their alcohol consumption, and the cost-of-living crisis has added momentum to the alcohol moderation trend. This presents a significant opportunity for low- and no-alcohol drinks, however they currently lag behind soft drinks as an alcohol substitute.

Low-/no-alcohol drinks are hindered by an image as overpriced. This makes it imperative for brands to prove that their products offer a more interesting and special drinking experience than standard soft drinks, to justify a higher price and prove value during the income squeeze.

For a complete analysis of consumer attitudes and innovation opportunities available to brands, purchase our full report. 

More About this Report

This report examines consumer usage of and attitudes towards low-/no-alcohol drinks. The report also features market sales and share of leading brands, including Heineken 0.0%, Becks Blue Alcohol Free, Corona Cero, Nozeco, Echo Falls, Kopparberg, and more.

Expert Analysis from an Industry Specialist

This report, written by Alice Baker, a leading analyst in the Food and Drink industry, delivers in-depth commentary and analysis to highlight current trends in the low- and no-alcohol drinks market and add expert context to the numbers.

The recent hike in alcohol duties is likely add to the alcohol moderation trend already strengthened by the cost-of-living crisis. This offers opportunities for low-/no-alcohol variants, but these are hindered by an image as over-priced. Smaller formats, including RTD versions, should help to bolster low/no-alcohol drinks’ affordability. As well as these practical solutions, companies should also deploy emotion-led marketing, including portraying no-/low-alcohol drinks as a guilt-free treat.

Alice BakerAlice Baker
Senior Research Analyst

 

 

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five year outlook for low- and no-alcohol drinks
      • Figure 1: Category outlook, 2023-27
    • The market
    • Strong NPD activity drives low-/no-alcohol drinks’ rapid growth over 2018-23
    • Sizeable value and volume sales growth expected for 2023-28
      • Figure 2: Market forecast for retail value sales of low- and no-alcohol drinks, 2023-28
    • Beer continues to dominate the low-/no-alcohol drinks retail market
      • Figure 3: Retail value sales of low- and no-alcohol drinks, by segment, 2021-23
    • Price rises for low-/no-alcohol drinks lag behind overall inflation over 2022-23
    • Changes to alcohol duties should advantage low-/no-alcohol variants
    • Companies and brands
    • Brands with aspirational lifestyle marketing focus surge forward
      • Figure 4: Leading brands’ sales in the UK retail low- and no-alcohol beer market, 2020/21-2022/23
    • Leading brands continue to extend into low-/no-alcohol and highlight flavour improvement through technology
    • Adspend on alcohol-free drinks nearly doubles over 2019-22, with spirits alternatives taking the lead in 2022
    • The consumer
    • Cost-of-living crisis boosts alcohol moderation
      • Figure 5: Alcohol reduction and non-usage, 2019-23
    • Low- and no-alcohol drinks lag behind soft drinks as alcohol substitutes
      • Figure 6: Drinks chosen in place of alcoholic drinks, 2023
    • Align with mindful drinking messages to appeal to those moderating alcohol intake
      • Figure 7: Behaviours relating to alcohol consumption and moderation, 2023
    • Four in ten adults drink low-/no-alcohol drinks, with under-45s the core users
      • Figure 8: Usage of standard, low-/lower-alcohol and non-alcoholic/alcohol-free drinks, 2022 and 2023
    • Lower price and equivalent taste to the alcoholic version are among means to grow usage of non-alcoholic/alcohol-free drinks
      • Figure 9: Enticements to buy non-alcoholic/alcohol-free drinks, 2023
    • Showcasing in the on-trade and food pairing suggestions warrant further exploration
      • Figure 10: Behaviours relating to low-/lower-alcohol and non-alcoholic/alcohol-free drinks, 2023
  3. Issues and Insights

    • Highlight flavour and explore different formats to prove low-/no-alcohol drinks’ value during the income squeeze
    • Offer food pairing suggestions to drive usage frequency
    • Focus on emotional benefits to drive purchase of low-/no-alcohol drinks
  4. Market Size and Performance

    • Strong NPD activity drives low-/no-alcohol drinks’ rapid growth over 2018-23
      • Figure 11: Retail market size for low- and no-alcohol drinks, by value and volume, 2018-23
    • Value and volume sales growth expected for 2023
  5. Market Forecast

    • Category volume sales to grow moderately over 2023-25, gaining momentum over 2026-28
      • Figure 12: Category outlook, 2023-27
    • Sizeable value and volume sales growth expected for 2023-28
    • Further volume sales gains anticipated for 2024, though tempered by sluggish real incomes growth
    • Volume sales growth will gain momentum over 2025-26
    • Higher engagement among current under-45s will support sales long-term
      • Figure 13: Market forecast for retail value sales of low- and no-alcohol drinks, 2023-28
      • Figure 14: Market forecast for retail volume sales of low- and no-alcohol drinks, 2023-28
    • Forecast methodology
  6. Market Segmentation

    • Beer continues to dominate the low-/no-alcohol drinks market
      • Figure 15: Retail value and volume sales of low- and no-alcohol drinks, by segment, 2021-23
  7. Market Drivers

    • Inflation has continued to eat into consumer spending power over the course of 2023
    • Prices rises for low-/no-alcohol drinks lag behind overall inflation in 2022
    • Price rises for low-/no- alcohol drinks gain momentum in 2023
    • Further interest rates increases will hit mortgage-holders
    • High inflation and rising interest rates will compound the impact of the slowing recovery
    • Consumer spending power will be curbed
    • Low unemployment is helping underpin consumers’ financial wellbeing
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 16: Household financial wellbeing index, 2016-23
    • …and most people are feeling the effects of price rises
    • Increased alcohol moderation offers opportunities for low/no-alcohol drinks, but these are hindered by an overpriced image
    • Income squeeze intensifies the competition posed by soft drinks
    • Low-/no-alcohol drinks’ higher usage among younger adults bodes well for their future
      • Figure 17: Usage of low-/lower-alcohol and non-alcoholic/alcohol-free drinks, 2023
    • Consumers’ reduced health emphasis props up alcohol consumption
    • Report urges the government to combat the “appalling harms” of alcohol
  8. Regulatory and Legislative Changes

    • Duty rate changes are likely to further encourage alcohol moderation
    • End to alcohol duty freeze will mean sharper price rises for 2023 than 2022
    • Changes to duty rates should give a boost to low- and no-alcohol variants
      • Figure 18: Amount of duty in pounds sterling per litre of pure alcohol, by alcoholic drink type, August 2023
    • Minimum unit pricing in Scotland found to hit certain drinks
      • Figure 19: Net growth/reduction in volumes of pure alcohol sold in the off-trade in Scotland after MUP was introduced, by alcoholic drink type, 2018-21
    • All UK nations now set to introduce DRS in 2025
  9. Market Share

    • Brands with aspirational lifestyle marketing focus surge forward
    • Increased distribution boosts smaller beer brands
      • Figure 20: Leading brands’ sales and share in the UK retail low- and no-alcohol beer market, by value and volume, 2020/21-2022/23
    • Nozeco benefits as more people stay sober over Christmas
      • Figure 21: Leading brands’ sales and share in the UK retail low- and no-alcohol wine market, by value and volume, 2020/21-2022/23
    • McGuigan Zero outperforms the full-strength version
    • Kopparberg maintains its sales but faces increased competition
      • Figure 22: Leading brands’ sales and share in the UK retail low- and no-alcohol cider market, by value and volume, 2020/21-2022/23
  10. Launch Activity and Innovation

    • Leading beer brands continue to release alcohol-free versions
    • Brands emphasize techniques used to ensure beers deliver on flavour
      • Figure 23: Asahi claims world first with “super dry” alcohol-free beer, 2023
    • Craft brands expand their low-/no-alcohol offering
      • Figure 24: Examples of low/no-alcohol beer launches by craft brands, 2022
    • Companies widen the offering of alcohol-free wines
    • Leading wine brands unveil no-alcohol variants
    • Brands use tea to replicate the flavour and mouthfeel of standard wine
      • Figure 25: Examples of alcohol-free rosé wines/wine alternatives with tea as an ingredient, 2022-23
    • Further activity in alcohol-free rosé wines
    • Eisberg goes premium
      • Figure 26: Eisberg Selection wines on display at Imbibe Live, London, July 2023
    • Spirits alternatives appear in an array of colours
      • Figure 27: Examples of colourful alcohol-free spirit/aperitif alternatives, 2023
    • Low-/no-alcohol RTDs launches shift focus to cocktails
    • Cocktail brands release non-alcoholic versions
      • Figure 28: Alcohol-free variants from Bottleproof Cocktails, 2023
    • Low/no alcohol brands extend into pre-mixed versions
      • Figure 29: Everleaf and Lockdown Liquor collaborate on premixed cocktail
    • Ish arrives in the UK
    • Own-label launches push their high quality and good value for money
      • Figure 30: Aldi beer launch emphasizes its premium credentials
    • Sobriety organisations open new retail channels for low-/no-alcohol drinks
    • Alcohol-free beer brand opens its own pub
  11. Advertising and Marketing Activity

    • Adspend on alcohol-free drinks nearly doubles over 2019-22
      • Figure 31: Total above-the line, online display and direct mail advertising expenditure on alcohol-free beer, cider, wine, spirits and liqueurs, by category, 2019-23 (sorted by 2022)
    • CleanCo leads on alcohol-free drinks advertising in 2022
      • Figure 32: Total above-the line, online display and direct mail advertising expenditure on alcohol-free beer, cider, wine, spirits and liqueurs, by advertiser, 2019-23 (sorted by 2022)
    • Diageo supports its spirits alternatives in 2022
    • Gordon’s emphasizes its alcohol-free pink variant’s “delicious” taste
    • Tanqueray focuses on occasions and underlines the treat aspects
    • Smirnoff’s Christmas campaign encourages responsible drinking
    • Corona emphasizes its all-natural credentials and goes for aspirational lifestyle positioning
    • Dry January again prompts a flurry of activity
    • No-/low-alcohol brands attend music festivals
    • Low-/no-alcohol brands turn their focus to travel in 2022
    • Alcohol alternatives brands highlight their environmental commitments
    • Brands focus on emotional wellbeing
      • Figure 33: Instagram posy by Days Brewing as part of its Better Sleep campaign, 2023
    • Nielsen Ad Intel coverage
  12. Alcohol Usage and Reduction

    • Six in ten adults avoid or limit their alcohol consumption
    • Cost-of-living crisis boosts alcohol moderation
      • Figure 34: Alcohol usage and reduction, 2019-23
    • 25-34s are the most likely to have cut back…
    • …and 18-24s are especially likely to be teetotal
    • Four in ten adults have not cut back on alcohol
    • Alcohol faces contrasting associations with emotional wellbeing
    • Financially better-off and over-55s are less likely to have cut back
      • Figure 35: Alcohol usage and reduction, by age group and by how people describe their household finances, 2023
  13. Drinks Chosen in Place of Alcoholic Drinks

    • Low- and no-alcohol drinks lag behind soft drinks as alcohol substitutes
    • Water and hot drinks lead
    • A pressing need to combat overpriced image
      • Figure 36: Drinks chosen in place of alcoholic drinks, 2023
  14. Behaviours Relating to Alcohol Consumption and Moderation

    • Mindful drinking concept appeals especially to under-35s
      • Figure 37: Behaviours relating to alcohol consumption and moderation, 2023
    • Standard alcohol brands can benefit from presenting mindful drinking messages
    • Dial up the treat aspects of low-/no-alcohol drinks
    • A third worry about the impact of alcohol on their emotional wellbeing, but they do not always act on this
    • Under-35s are particularly likely to be concerned about emotional wellbeing
    • Align with emotional wellbeing desires to drive purchase of low-/no-alcohol drinks
      • Figure 38: Instagram post by I Heart Wines as part of its ‘Movie Nights’ campaign, 2021
    • Portray low-/no-alcohol drinks as a good way to celebrate small victories
  15. Usage of Low-/Lower-Alcohol and Non-alcoholic/Alcohol-free Drinks

    • Four in ten drink low-/lower- or non-alcoholic/alcohol-free drinks
      • Figure 39: Usage of standard, low-/lower-alcohol and non-alcoholic/alcohol-free drinks, 2023
    • Under-45s are the highest users overall, and the most frequent ones
      • Figure 40: Usage of low-/lower-alcohol and non-alcoholic/alcohol-free drinks, 2023
      • Figure 41: Usage frequency for non-alcoholic/alcohol-free drinks, by broad age group and by how people describe their household finances, 2023
    • No difference in usage of no-alcohol drinks by people’s financial situation
    • Beer leads on low-/no alcohol usage
      • Figure 42: Usage of standard, low-/lower-alcohol and non-alcoholic/alcohol-free drinks, by type, 2023
  16. Enticements to Buy Non-alcoholic/Alcohol-free Drinks

    • Equivalent taste is the leading enticement for no-alcohol drinks
      • Figure 43: Enticements to buy non-alcoholic/alcohol-free drinks, 2023
    • Offer sampling opportunities to demonstrate that no-alcohol drinks deliver on flavour
    • Explore innovative flavours in order to offer something unique
      • Figure 44: Enticements to buy non-alcoholic/alcohol-free drinks, by usage of low- and no-alcohol drinks, 2023
    • Lower price than the alcoholic equivalent’s sways one in five
    • Calling out the price per serving should help to strengthen low-/no-alcohol drinks’ good value image
      • Figure 45: Examples from the food and drink and household care categories of brands spelling out the number of servings/uses per pack, 2022-23
    • Explore smaller and larger formats to appeal to shoppers seeking value
  17. Behaviours Relating to Low/Lower-alcohol and Non-alcoholic/Alcohol-free Drinks

    • Showcasing their low-/no-alcohol drinks selections should benefit pubs/bars
      • Figure 46: Behaviours relating to low-/lower-alcohol and non-alcoholic/alcohol-free drinks, 2023
    • Prompts on menus and on in-venue signage should help to drive on-trade purchase
    • Explore draught formats
    • Food pairings appeal to half of drinkers
    • Offer food pairing suggestions at POS as well as via social media
  18. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  19. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 47: Market forecast and prediction intervals for retail value sales of low- and no-alcohol drinks, 2018-28
      • Figure 48: Market forecast and prediction intervals for retail volume sales of low- and no-alcohol drinks, 2018-28
    • Market drivers and assumptions
    • Forecast methodology
  20. Appendix – Market Share

      • Figure 49: Leading brand owners’ sales and share in the UK retail low- and no-alcohol beer market, by value and volume, 2020/21-2022/23
      • Figure 50: Leading brand owners’ sales and share in the UK retail low- and no-alcohol wine market, by value and volume, 2020/21-2022/23
      • Figure 51: Leading brand owners’ sales and share in the UK retail low- and no-alcohol cider market, by value and volume, 2020/21-2022/23
      • Figure 52: Leading brands’ sales and share in the UK retail spirit alternatives market, 2020/21-2022/23
      • Figure 53: Leading brand owners’ sales and share in the UK retail spirit alternatives market, 2020/21-2022/23
      • Figure 54: Leading brands’ sales and share in the UK retail low- and no-alcohol RTDs market, by value and volume, 2020/21-2022/23
      • Figure 55: Leading brand owners’ sales and share in the UK retail low- and no-alcohol RTDs market, by value and volume, 2020/21-2022/23

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