2022
9
UK Attitudes towards Low- and No-Alcohol Drinks Market Report 2022
2022-08-18T04:06:06+01:00
OX1105763
2195
154886
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Report
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“The market’s overpriced image is curbing growth during the cost-of-living crisis. Developing flavour complexity, for example through aroma and warming ingredients, and exploring added benefits around health and mood will…

UK Attitudes towards Low- and No-Alcohol Drinks Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Attitudes Towards Low- and No-Alcohol Drinks Market Report identifies consumers’ attitudes towards non-alcoholic beverages, the impact of the cost of living crisis and innovations in the low and non-alcoholic drinks market. This report covers the non-alcoholic drinks market size, market forecast, market segmentation and industry trends in the UK low- and no-alcohol drinks market.

Frequently Asked Market Research Questions in the Non-Alcoholic Drinks Market

What is the low-and no-alcohol drinks market size?

The trend of moderate alcohol consumption in the UK has increased, driving the expansion of the market for low and non-alcoholic drinks. In 2022, the low and non-alcoholic drinks market saw strong growth, with £255 million in volume sales.

Which beverage company has the largest share in the low- and no-alcohol drinks market?

Beer dominates volume sales of low and no-alcohol drinks in retail, with an estimated 68% share in 2022. Heineken 0.0% is one of the leading alcoholic-free brands in the market, recording £28 million in value sales in 2022.

 

UK Low- and No-Alcohol Drinks Market – Current Landscape

The cost-of-living crisis should help to fuel alcohol moderation, given the importance of money-saving motivations behind this trend. However, the low- and no-alcohol drinks market’s overpriced image limits the extent to which the market will benefit, with soft drinks better poised to reap the rewards, especially in light of premium innovation featuring sophisticated flavours in this category.

 

Non-Alcoholic Drinks Market –  Key Industry Trends

Despite the significant steps forward in developing the taste of products in the non-alcoholic drinks market, there are still lingering perceptions that the taste of these drinks does not live up to that of the real thing. The perceived missing element of flavour complexity risks alcohol-free alternatives being seen as ultra-expensive soft drinks, making them vulnerable to substitution.

Consumer behaviours in the low- and no-alcohol drinks market

  • 32% of UK adults have limited/reduced their alcohol intake in the last 12 months.
  • 39% of those who have limted/reduced their alcohol intake done so to improve their health.
  • 41% of UK adults have drunk low or no-alcohol drinks in the past 3 months.
  • 54% of adults who have consumed low or no-alcohol drinks agree that it makes them feel good.

 

UK Low- and No-Alcohol Drinks Market – Future Trends and Innovations

There is strong, largely untapped interest within the low- and no-alcohol drinks market to add vitamins, minerals and alternative relaxing ingredients to their products. Therefore, brands should explore benefits around health and mood, with this helping to justify higher prices than soft drinks.

The alcohol moderation trend will continue to gain momentum, supported by the accelerated health trend in the UK, helping to grow the non-alcoholic drinks market size. The low- and no-alcohol drinks market’s performance will continue to be heavily influenced by launches, marketing activity, shelf space and visibility in retail stores.

To discover more about our UK Low- and No-Alcohol Drinks Market Report 2022, read our UK Alcoholic Drinks Market Report 2022, or take a look at our other Drinks Market Research.

 

Quickly Understand

  • The impact of the cost-of-living crisis on the low- and no-alcohol drinks market.
  • The outlook for the non-alcoholic drinks market in the re-emergence from the pandemic.
  • The latest new product development trends in the non-alcoholic drinks market.
  • The alcohol moderation trend and the drivers behind this.
  • Consumers’ usage of low- and no-alcohol drinks.
  • Consumer behaviours and attitudes towards low- and no-alcohol drinks.
  • Explores low and non-alcoholic drinks market and alcohol-free market share

 

Covered in this Report


Products:
Low-/no-alcohol beer, wine, cider, spirits, RTDs.
Brands: 
Peroni, Hardys, Diageo (Guinness, Gordons, Tanqueray Seedlip), Nozeco and

McGuigan, Heineken (Birra Moretti), Beck’s, Bavaria, Brewdog, Budweiser, Stella Artois, Carlsberg (San Miguel, Erdinger Alkoholfrei), Echo Falls, Nozeco, Eisberg, Mcguigan, Gallo, Freixenet, Stormhoek, Kopparberg, Thatchers, Corona, Sipsmith, Ara Wines, Oddbird, Bolle, William Grant & Sons, Lyre’s, Lucky Saint, Sentia Spirits, Sharp, Three Spirits Blurred Vines, Asahi, Jukes Cordialities, Big Drop Brewing, CleanCo, Fluere Drinks, Pernod Richard, Drynks, CleanCo.

 

Expert Analysis from a Specialist in the Drink Industry

This report, written by Emma Clifford, 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 market’s overpriced image is curbing growth during the cost-of-living crisis. Developing flavour complexity, for example through aroma and warming ingredients, and exploring added benefits around health and mood will help to boost perceptions of value. Inclusion in lunchtime meal deals will lower the price barrier, boost visibility and unlock new occasions.”

Emma Clifford
Associate Director

 

Table of Contents

  1. Overview

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

    • The five-year outlook for the low- and no-alcohol drinks retail market
      • Figure 1: Category outlook, 2022-27
    • The market
    • Market size and forecast
      • Figure 2: Market forecast for retail value sales of low- and no-alcohol drinks, 2017-27
    • Beer regains ground in 2022; wine loses share
      • Figure 3: UK retail value sales of the low- and no-alcohol drinks market, by segment, 2020-22
    • The cost-of-living crisis makes the category’s overpriced image especially problematic
    • Greater emphasis on health set to endure
    • Potential to unlock the potential of the ageing population
    • Companies and brands
    • Newcomers make their mark on the low- and no-alcohol category
      • Figure 4: Leading brands’ value sales in the UK low- and no-alcohol beer retail market, 2019/20-2021/22
    • More alcohol brands branch out into alcohol-free; existing brands improve and extend their ranges
    • Adspend returns to 2019 levels in 2021
      • Figure 5: Total above-the-line, online display and direct mail advertising expenditure on alcohol-free alternatives, 2019-22
    • The consumer
    • Alcohol moderation falls back in 2022
      • Figure 6: Alcohol usage and reduction, 2019, 2021 and 2022
    • Money-saving has become as important as improving health as a motivation for alcohol moderation
      • Figure 7: Reasons for limiting/reducing alcohol intake, 2022
    • Two fifths drink low or non-alcoholic drinks
      • Figure 8: Usage of standard alcoholic drinks, low/lower alcoholic drinks and non-alcoholic/alcohol-free drinks, 2022
    • Those with healthy finances are the most frequent users
      • Figure 9: Frequency of drinking non-alcoholic/alcohol-free drinks in the last three months, by gender, 2022
    • The category benefits from a feelgood factor, but needs more transparency over how these drinks are made
      • Figure 10: Behaviours related to low- and no-alcohol drinks, 2022
    • A need to convince people of flavour complexity; lunchtime meal deals offer big potential
      • Figure 11: Attitudes towards low- and no-alcohol drinks, 2022
  3. Issues and Insights

    • Focus on flavour complexity to boost perceptions of value
    • Lunchtime meal deals present huge potential
    • Strengthen links to mood through marketing messages and NPD
  4. Market Size and Performance

    • Volume sales have doubled over the last five years
      • Figure 12: Retail market size for low- and no-alcohol drinks*, 2016-22
    • A slowdown in retail growth as the on-premise rebounds
  5. Market Forecast

    • The five-year outlook for the low- and no-alcohol drinks retail market
      • Figure 13: Category outlook, 2022-27
    • Continuous rapid growth anticipated over 2022-27
      • Figure 14: Market forecast for retail value sales of low- and no-alcohol drinks, 2017-27
      • Figure 15: Market forecast for retail volume sales of low- and no-alcohol drinks, 2017-27
    • Forecast methodology
  6. Market Segmentation

    • Beer regains ground in 2022; wine loses share
      • Figure 16: UK retail value and volume sales of the low- and no-alcohol drinks market*, by segment, 2020-22
    • Spirit alternatives and RTDs enjoy rapid growth
  7. Market Drivers

    • Inflation is the key concern for 2022 for consumers and brands…
    • … and will weigh down the post-COVID recovery
    • Low- and no-alcohol drinks feel many of the same inflationary pressures as alcohol
    • Inflation will exacerbate the category’s overpriced image
    • Alcohol duty continues to be frozen
    • Consumer spending power will be curbed
    • The conflict in Ukraine will hurt the UK economy in a number of ways
    • Employment has held up better than expected
    • Employment levels influence usage of low- and no-alcohol drinks
      • Figure 17: Usage of standard alcoholic drinks, low/lower alcoholic drinks and non-alcoholic/alcohol-free drinks, by employment status, 2022
    • Consumers’ financial wellbeing has slipped from the highs of 2021…
      • Figure 18: Household financial wellbeing index, 2016-22
    • …and most people are feeling the effects of price rises
    • Alcoholic drinks’ discretionary nature puts them in the firing line for cutbacks
    • More governments impose minimum pricing on alcoholic drinks
    • New reports on rise in harmful alcohol consumption
    • Greater emphasis on health set to endure
    • Reports that no- and low-alcohol labelling rules could change
    • Adult Non-Alcoholic Beverage Association expands to the UK and Europe
    • Ageing population remains a challenge
      • Figure 19: Trends in the age structure of the UK population, 2016-26
  8. Market Share

    • Newcomers make their mark on the low- and no-alcohol beer market
      • Figure 20: Leading brands’ sales and shares in the UK low- and no-alcohol beer retail market, by value and volume, 2019/20-2021/22
    • Nozeco extends its lead in the low- and no-alcohol wine market
      • Figure 21: Leading brands’ sales and shares in the UK low- and no-alcohol wine retail market, by value and volume, 2019/20-2021/22
    • Kopparberg’s share is hit amid rising competition in alcohol-free cider
      • Figure 22: Leading brands’ sales and shares in the UK low- and no-alcohol cider retail market, by value and volume, 2019/20-2021/22
    • Diageo ramps up its dominance in spirit alternatives…
      • Figure 23: Leading brands’ sales and shares in the UK spirit alternatives retail market, by value, 2019/20-2021/22
    • …low- and no-alcohol RTDs
      • Figure 24: Leading brand owners’ sales and shares in the UK low- and no-alcohol RTDs retail market, by value, 2019/20-2021/22
  9. Launch Activity and Innovation

    • More alcohol brands branch out into alcohol-free
    • Corona and Guinness make their alcohol-free debuts
      • Figure 25: Alcohol-free beer launches, UK, 2021
    • Sipsmith launches Free-Glider
    • Canned wine brand Hun unveils non-alcoholic variant
    • Leading brands up the ante on taste through technology
    • Accolade Wines launches Hardys Zero
    • Ara Wines claims UK first with alcohol-free Marlborough Sauvignon Blanc
    • Oddbird’s premium non-alcoholic sparkling wines are launched in the UK
    • Bolle uses new fermentation technology
    • Peroni unveils new beer with a taste “virtually indistinguishable from original”
    • Brands extend ranges with new flavours
    • Erdinger launches alcohol-free grapefruit beer
      • Figure 26: Erdinger Weissbräu Alcohol Free Grapefruit Flavoured Isotonic Wheat Beer, UK, 2021
    • Kopparberg expands its alcohol-free range
    • Pink gin alternatives continue to attract attention
      • Figure 27: Launches of alcohol-free pink gins, UK, 2021-22
    • Strykk adds a vanilla-flavoured vodka alternative
    • Ceder’s branches out to non-alcoholic white rum
    • Brands look to new formats
    • Heineken 0.0 launches on draught
    • Lucky Saint moves into cans
    • More activity in RTDs
      • Figure 28: Non-alcoholic drink launches from Lyre’s, UK, 2021
    • Brands explore mood-enhancing cues
    • Sentia GABA Spirit launches in the on- and off-trade
      • Figure 29: Sentia Red GABA Spirit, UK, 2022
    • Three Spirit forays into wine alternatives
      • Figure 30: Three Spirit’s Blurred Vines range, UK, 2022
    • Club Soda launches alcohol-free pop-up in London
  10. Advertising and Marketing Activity

    • Adspend returns to 2019 levels in 2021
      • Figure 31: Total above-the-line, online display and direct mail advertising expenditure on alcohol-free alternatives, 2019-22
    • Asahi becomes top advertiser in 2021
    • Peroni celebrates its partnership with Formula One team
    • “Back to Zero” campaign supports launch of Peroni Nastro Azzurro
      • Figure 32: Total above-the-line, online display and direct mail advertising expenditure on alcohol-free alternatives, 2019-22
    • Heineken leads spending in the first half of 2022
    • Heineken launches “Cheers with No Alcohol. Now You Can” campaign
    • Heineken is put on draught in two TV soaps
    • BrewDog raises awareness of seasonal affective disorder
    • Brands continue to focus on Dry January
    • Caleño unveils summer campaign with a focus on fun and positivity
      • Figure 33: Out-of-home advertisements for Caleño’s “Say Yes to a Summer of No Regrets” campaign
    • CleanCo launches a digital content series
    • Nielsen Ad Intel coverage
  11. Alcohol Usage and Reduction

    • A third of adults limit/reduce their alcohol consumption
    • Alcohol moderation falls back in 2022
      • Figure 34: Alcohol usage and reduction, 2019, 2021 and 2022
    • Under-45s are most likely to have limited/reduced their alcohol intake
      • Figure 35: Consumers who have limited/reduced alcohol usage, by gender and age, 2021-22
    • Abstinence is highest among those with less healthy finances
      • Figure 36: Consumers who do not drink alcohol, by age and financial situation, 2022
  12. Reasons for Limiting/Reducing Alcohol Intake

    • Money-saving has become as important as health motivation
      • Figure 37: Reasons for limiting/reducing alcohol intake, 2022
    • Soft drinks will benefit more than low- and non-alcoholic drinks
    • Scope to push health credentials of no-alcohol drinks to tap health-led motivations
    • Calories will also be important
      • Figure 38: Reasons for not drinking alcohol, 2022
  13. Usage of Low-/Non-alcoholic/Alcohol-free Drinks

    • Two fifths drink low or non-alcoholic drinks
      • Figure 39: Usage of standard alcoholic drinks, low/lower alcoholic drinks and non-alcoholic/alcohol-free drinks, 2022
    • Beer leads usage of low- and no-alcohol drinks
      • Figure 40: Usage of standard alcoholic drinks, low/lower alcohol drinks and non-alcoholic/alcohol-free drinks, by type, 2022
    • Men and those with healthy finances are the most frequent users of non-alcoholic drinks
      • Figure 41: Frequency of drinking non-alcoholic/alcohol-free drinks in the last three months, by gender, 2022
  14. Behaviours Related to Low- and No-alcohol Drinks

    • The category benefits from a feelgood factor
      • Figure 42: Behaviours related to low- and no-alcohol drinks, 2022
    • Alcohol-free brands should promote relaxation cues in marketing
    • Scope to push links to mood through ingredients
      • Figure 43: Three Spirit’s The Collection, UK, 2022
    • Ethical aspects can enhance feelgood associations
    • A need for more transparency over how these drinks are made
      • Figure 44: Behaviours related to low- and no-alcohol drinks, by usage, 2022
  15. Attitudes towards Low- and No-alcohol Drinks

    • A need to convince people of flavour complexity…
      • Figure 45: Attitudes towards low- and no-alcohol drinks, 2022
    • …to boost perception of value and differentiate from soft drinks
    • Warming ingredients can boost the ‘realness’ of spirit alternatives
    • Focus on aroma in product descriptions
    • Alcohol brands should encourage low alcohol pours
      • Figure 46: Attitudes towards low- and no-alcohol drinks, by usage, 2022
    • Inclusion in lunchtime meal deals can unlock new occasions
    • The category needs more in-store visibility
      • Figure 47: In-store display of alcohol-free drinks at Sainsbury’s for Dry January, 2021
    • Harness the positive image of no-alcohol drinks
    • Tap into the power of recommendations
  16. Appendix – Data Sources, Abbreviations and Supporting Information

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

    • Market forecast and prediction intervals
      • Figure 48: Market size and forecast for total retail volume and value sales of low- and no-alcohol drinks, 2017-27
      • Figure 49: Market forecast and prediction intervals for total retail value sales of low-and no-alcohol drinks, 2022-27
      • Figure 50: Market forecast and prediction intervals for total retail volume sales of low-and no-alcohol drinks, 2022-27
    • Market drivers and assumptions
    • Forecast methodology
  18. Appendix – Market Share

      • Figure 51: Leading brand owners’ sales and shares in the UK low- and no-alcohol beer retail market, by value and volume, 2019/20-2021/22
      • Figure 52: Leading brand owners’ sales and shares in the UK low- and no-alcohol wine retail market, by value and volume, 2019/20-2021/22
      • Figure 53: Leading brand owners’ sales and shares in the UK low- and no-alcohol cider retail market, by value and volume, 2019/20-2021/22
      • Figure 54: Leading brand owners’ sales and shares in the UK spirit alternatives retail market, by value and volume, 2019/20-2021/22

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