2021
9
UK Attitudes towards Low- and Non-alcoholic Drink Market Report 2021
2021-09-24T04:09:46+01:00
OX1045907
2195
142653
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Report
en_GB
“The low- and no-alcohol drinks market is well-placed to gain users as a result of the COVID-19/coronavirus outbreak, as health takes a more central stage in people’s food and drink…

UK Attitudes towards Low- and Non-alcoholic Drink Market Report 2021

£ 2,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Low- and Non-alcoholic Drink market, including the behaviours, preferences and habits of the consumer.

While the COVID-19 outbreak has seen many people treat themselves to alcohol more, the heightened focus on health has also seen a minority become more concerned with their alcohol consumption. The usage of low- and no-alcohol (NOLO) alternatives  to standard alcoholic drinks has continued to grow, with 27% of drinkers saying such variants of beer, cider, wine or RTD are part of their drinks repertoire. This is a clear signal of these drinks’ mainstream role.

The share of adults limiting or reducing their intake has climbed to 36%, from 33% in the year to April 2019, while 16% of drinks users plan to cut back on alcohol once the pandemic is over, opening up new opportunities for the NOLO drinks market. Younger consumers are a key demographic for the NOLO drinks market, but with the number of 18-34s set to fall over 2020-25, brands will need to find ways to keep this cohort engaged as they age.

Brands still have work to do to convince non-users to try their low- and no-alcohol products, with taste deemed disappointing by many, with very few people accepting even a better-for-you product if it falls short on this. Price is also a hurdle with widespread expectations that these drinks should undercut alcohol.

Guidance and inspiration could help to drive product trial, appealing widely as many consumers are still unfamiliar with low- and no-alcohol drinks. Recommendations hold strong sway in this market, while smaller formats, including RTDs spark widespread interest. Hitting more accessible price points and entailing less potential for waste, these are well-placed to ease consumers into a new world of drinks.

Read on to discover more details or take a look at all of our UK Drinks market research.

Quickly understand

  • The impact of COVID-19 on the low- and no-alcohol off-trade market.
  • Regulatory and legislative changes that affect the market.
  • Alcohol usage and reduction amongst consumers.
  • Usage of selected low- and no-alcohol drinks.
  • Behaviours related to low-/non-alcoholic/alcohol-free drinks.
  • Attitudes towards low-/non-alcoholic/alcohol-free drinks.
  • Non alcoholic drinks market UK.
  • NOLO Drinks Market UK.
  • NOLO Trends UK.

Covered in this report

Brands: McGuigan Zero, Accolade Wines (Echo Falls), Nosecco, Diageo (Gordon’s), Tanqueray, AB InBev, Heineken, Brewdog, Bavaria, Carlsberg, Asahi, Australian Vintage, Freixenet, E & J Gallo Winery, Origin Wine, Reh Kendermann, Treasury Wine Estates, Seedlip, Ceders Drinks, Thatchers, Marks and Spencer (M&S), Sea Arch, CleanCo, Pure Heaven Drinks, Asahi UK, Drynks Unlimited, Brooklyn Brewery, Big Drop Brewing Company, Domaines Pierre Chavin.

Expert analysis from a specialist in the field

This report, written by Angharad Goode, a leading analyst in the Beauty sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The low- and no-alcohol drinks market is well-placed to gain users as a result of the COVID-19/coronavirus outbreak, as health takes a more central stage in people’s food and drink considerations. There are many areas for brands to expand into to tempt consumers, whether it’s by offering drinks recipes or smaller formats, however taste is the key to ensuring user retention.

Mikolaj Kaczorowski
Innovation Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on off-trade low- and no-alcohol drinks
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on off-trade low- and no-alcohol drinks, August 2021
    • The market
    • Retail boost, health focus and NPD fuel growth
      • Figure 2: Market size and COVID-19 scenario forecast for retail value sales in the low- and no-alcohol drinks market*, 2016-26
    • Beer extends its lead in low-/no-alcohol retail
      • Figure 3: UK retail value sales of selected low- and no-alcohol drinks, by category, 2018/19-2020/21
    • Impact of alcohol on the brain highlighted in new research
    • PHE launches latest Better Health campaign
    • Potential plans for calorie labelling for alcoholic drinks
    • Calls for minimum unit pricing for alcoholic drinks renewed
    • Companies and brands
    • Heineken 0.0 extends its lead in beer, Nosecco grabs the top spot in wine
      • Figure 4: UK retail value sales of the leading low- and no-alcohol beer brands, 2019/20-2020/21
    • Big brands embrace low-/no-alcohol
    • January ad spend eclipses rest of the year
    • The consumer
    • COVID-19 drives increase in at-home drinking but many plan cutbacks
    • More people reduce their alcohol intake in 2021 compared to 2019
      • Figure 5: Alcohol usage and reduction, 2019* and 2021**
    • Health is the leading driver for reducing alcohol consumption
      • Figure 6: Reasons for limiting/reducing alcohol usage, 2019^ and 2021^^
    • A quarter embrace alternatives to standard alcoholic drinks
      • Figure 7: Alcohol drinkers’ usage of low- /non-alcoholic/alcohol-free beer, cider, wine and pre-mixed drinks, 2021
    • Almost half would be encouraged by recommendations
      • Figure 8: Behaviours related to low-/non-alcoholic/alcohol-free drinks, 2021
    • Taste perception has improved, but work is still needed
      • Figure 9: Attitudes towards low-/non-alcoholic/alcohol-free drinks, 2021
  3. Issues and Insights

    • COVID-19 prompts many to rethink alcohol intake
    • Taste perception has improved but work is still needed
    • Pubs and bars need to step up no-/low-alcohol offering
  4. The Market – Key Takeaways

    • Retail boost, health focus and NPD fuel growth of low- and no-alcohol drinks
    • Market set to continue growing
    • Beer extends its lead in low-/no-alcohol retail
    • Impact of alcohol on the brain highlighted in new research
    • PHE launches latest Better Health campaign
    • Potential plans for calorie labelling for alcoholic drinks
    • Calls for minimum unit pricing for alcoholic drinks renewed
  5. Market Size

    • Low- and no-alcohol drinks market avoids the worst of COVID-19
      • Figure 10: Short-, medium- and long-term impact of COVID-19 on low- and no-alcohol drinks, August 2021
    • Retail boost, health focus and NPD fuel growth of low- and no-alcohol drinks
      • Figure 11: Retail market size for low- and no-alcohol drinks*, 2015-21 (prepared on 3 September 2021)
  6. Market Forecast

    • Market set to continue growing
      • Figure 12: Market forecast for retail value sales in the UK low- and no-alcohol drinks market*, 2021-26
      • Figure 13: Market forecast for retail volume sales in the UK low- and no-alcohol drinks market*, 2021-26
    • Market drivers and assumptions
      • Figure 14: Key drivers affecting Mintel’s market forecast, 2015-25
    • Forecast methodology
  7. COVID-19 Scenario Performance

    • Mintel’s approach to predicting the impact of COVID-19
    • Fundamental differences in how COVID-19 is affecting consumer markets
    • Little difference expected between the three scenarios
      • Figure 15: COVID-19 scenario value forecasts, 2016-26
      • Figure 16: COVID-19 scenario volume forecasts, 2016-26
    • Market set for strong growth in all scenarios
    • COVID-19 market disruption: risks and outcomes
      • Figure 17: Summary of Mintel scenario expectations and the impact on selected segments of the low-/no-alcohol retail market, 2021
  8. Market Segmentation

    • Beer extends its lead in low-/no-alcohol retail
      • Figure 18: UK retail value and volume sales of selected low- and no-alcohol drinks, 2018/19-2020/21
  9. Market Drivers

    • Impact of alcohol on the brain highlighted in new research
    • PHE launches latest Better Health campaign
    • Interest in alcohol reduction campaigns waning
      • Figure 19: Index of Google searches for “dry January”, “go sober for October” and “Veganuary”, January 2017-July 2021
    • Key demographic set to decrease
      • Figure 20: Trends in the age structure of the UK population, 2015-20 and 2020-25
  10. Regulatory and Legislative Changes

    • WSTA releases new guidelines on spirit substitutes labelling
    • Potential plans for calorie labelling for alcoholic drinks
    • Calls for minimum unit pricing for alcoholic drinks renewed
    • Alcohol duties frozen for second year, government launches review
  11. Companies and Brands – Key Takeaways

    • Heineken 0.0 extends its lead in beer, Nosecco grabs the top spot in wine
    • Big brands embrace low-/no-alcohol
    • January ad spend eclipses rest of the year
  12. Market Share

    • Heineken 0.0 grows lead in beer
    • Budweiser Zero makes strong debut
      • Figure 21: UK retail value and volume sales of the leading low- and no-alcohol beer brands, 2018/19-2020/21
    • Nosecco grabs the top spot in low- and no-alcohol wine
    • McGuigan and Echo Falls grow sales
      • Figure 22: UK retail value and volume sales of the leading low- and no-alcohol wine brands, 2018/19-2020/21
    • Gordon’s 0.0 demonstrates the power of big brands
      • Figure 23: UK retail value sales of the leading spirit alternatives brands, 2018/19-2020/21
  13. Launch Activity and Innovation

    • Big brands embrace low-/no-alcohol
    • Spirit alternatives continue to attract launches
      • Figure 24: Gordon’s 0.0 Alcohol Free launch, 2020
    • Beer sees slew of new alcohol-free offerings
    • Cider enjoys boost in activity
      • Figure 25: Examples of low-alcohol and alcohol-free cider launches, 2020-21
    • Small brands drive launches in alcohol-free wine
    • Low-/no-alcohol brands explore RTDs
      • Figure 26: Examples of low-/non-alcoholic and alcohol-free ready-to-drink launches, 2021
    • Supermarkets grow low-/no-alcohol offering
    • McGuigan Zero secures listings in Sainbury’s and Asda
    • Aldi bolsters no/low offering
    • Tesco adds a second product from Stryyk
  14. Advertising and Marketing Activity

    • January ad spend eclipses rest of the year
    • BrewDog opened AF bar and offered free pints for January 2020
      • Figure 27: Above-the line, online display and direct mail advertising expenditure on alcohol-free beer, cider and wine, by month, 2019-21*
    • Heineken recruits James Bond for 0.0 beer
      • Figure 28: Total above-the line, online display and direct mail advertising expenditure on alcohol free beer, cider and wine, by advertiser, 2019-21* (ordered by 2021)
    • Seedlip launches first ad campaign
    • Gordon’s 0.0 ad promises a great tasting drink
    • Brands keen to build association with sport and exercise
    • Peroni Libera 0.0% secures multi-year deal with Formula One team
    • Erdinger Alkoholfrei sponsors RunFestRun
    • Carlsberg 0.0 gets first global campaign
    • Ceder’s hosts virtual wellness retreat
    • Atopia leans on social media influencers
    • McGuigan partnered with digital content series
    • Nielsen Ad Intel coverage
  15. The Consumer – Key Takeaways

    • COVID-19 drives increase in at-home drinking but many plan cutbacks
    • More people reduce their alcohol intake in 2021 compared to 2019
    • Health and money are leading drivers for reducing alcohol consumption
    • A quarter embrace alternatives to standard alcoholic drinks
    • Almost half would be encouraged by recommendations
    • Taste perception has improved, but work is still needed
  16. Impact of COVID-19 on Consumer Behaviour

    • At-home drinking climbs as people treat themselves during COVID-19
    • More people worry about their weight
    • Pandemic hits financial confidence, followed by strong rebound
      • Figure 29: Trends in consumer sentiment for the coming year, January 2020-July 2021
    • Social distancing measures hit on-trade sales
  17. Alcohol Usage and Reduction

    • More people reduce their alcohol intake in 2021 compared to 2019
      • Figure 30: Alcohol usage and reduction, 2019* and 2021**
    • Younger consumers more likely to reduce alcohol intake
      • Figure 31: Alcohol usage and reduction, by gender and age group, 2021
  18. Reasons for Limiting/Reducing Alcohol Intake

    • Health is the leading driver for reducing alcohol consumption
    • Low-/no-alcohol category must count its calories
      • Figure 32: Reasons for limiting/reducing alcohol usage, 2019^ and 2021^^
    • Money is the second most popular driver
    • Health is also the leading driver for not drinking alcohol
      • Figure 33: Reasons for not drinking alcohol, 2019^ and 2021^^
  19. Usage of Selected Low-/Non-alcoholic/Alcohol-free Drinks

    • A quarter embrace alternatives to standard non-alcoholic drinks
      • Figure 34: Alcohol drinkers’ usage of low- /non-alcoholic/alcohol-free beer, cider, wine and pre-mixed drinks, 2021
    • Beer leads by usage
    • Non-drinkers’ usage of selected non-alcoholic/alcohol-free drinks remains steady
      • Figure 35: Non-drinkers’ usage of non-alcoholic/alcohol-free beer, cider, wine and pre-mixed drinks, 2019* and 2021**
  20. Behaviours related to Low-/Non-alcoholic/Alcohol-free Drinks

    • Almost half would be encouraged by recommendations
      • Figure 36: Behaviours related to low-/non-alcoholic/alcohol-free drinks, 2021
    • Strong appetite for mixed drink recipes
      • Figure 37: Examples of low-alcohol and non-alcoholic spirit alternative launches offering pairing suggestions, 2020
    • An opportunity for RTDs
    • Smaller bottles would tempt a third to try spirit alternatives
  21. Attitudes towards Low-/Non-alcoholic/Alcohol-free Drinks

    • Taste perception has improved, but work is still needed
      • Figure 38: Attitudes towards low-/non-alcoholic/alcohol-free drinks, 2021
    • A third want more low/no choice on premise
    • Price is a sticking point for many
    • Potential to mine functional benefits
  22. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  23. Appendix – Market Share

      • Figure 39: UK retail value and volume sales of the leading low- and no-alcohol beer manufacturers, 2018/19-2020/21
      • Figure 40: UK retail value and volume sales of the leading low- and no-alcohol wine manufacturers, 2018/19-2020/21
      • Figure 41: UK retail value sales of the leading spirit alternatives manufacturers, 2018/19-2020/21
  24. Appendix – Central Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 42: Market forecast for value sales in the low- and no-alcohol drinks retail market, upper and lower bound, 2021-26
      • Figure 43: Market forecast for volume sales in the low- and no-alcohol drinks retail market, upper and lower bound, 2021-26
    • Market drivers and assumptions
      • Figure 44: Key drivers affecting Mintel’s market forecast, 2021-26
    • Forecast methodology
  25. Appendix – COVID Scenario Performance Methodology and Assumptions

    • Scenario performance
      • Figure 45: Market scenario forecast for value sales in the low- and no-alcohol drinks retail market, 2016-26
      • Figure 46: Market scenario forecast for volume sales in the low- and no-alcohol drinks retail market, 2016-26
    • Rapid COVID recovery, central and extended COVID disruption scenarios outline
    • Scenario methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

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Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

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*databooks not available with UK B2B Industry reports.

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