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.
Key Insights Covered in this Report:
- The impact of the cost-of-living crisis on value and volume sales of low- and no-alcohol drinks.
- Trends in launch activity in low- and no-alcohol drinks, and opportunities for further innovation.
- Levels of alcohol moderation and avoidance.
- Demographic patterns in usage of low- and no-alcohol drinks.
- Leading usage occasions for low- and no-alcohol drinks, including at home and in the on-trade.
- Barriers to drinking low-/no-alcohol drinks, including concerns over price and sugar content.
Low-Alcohol and Non-alcoholic Drinks Market Landscape
The rising cost of living has boosted alcohol moderation in recent years, supporting sales of low-/no-alcohol versions. However, their relatively high price is a barrier to usage of low/no-alcohol drinks, seeing many people favour soft drinks as alternatives to alcohol. Higher usage of low-/no-alcohol drinks among the financially better-off suggests that these drinks should benefit as real income growth picks up momentum.
Low- and No-alcohol Drinks – UK Consumer Trends
Concerns about sugar are a major barrier to greater take-up of low-/no-alcohol drinks, impeding their ability to appeal as a healthier alternative to their alcohol-containing counterparts. Raising awareness that lower alcohol content does not necessarily mean higher sugar, including sugar-related on-pack nutritional claims where relevant, should help companies to reassure consumers on this front and to drive sales.
Forging associations with relaxation will bolster the appeal of low-/no-alcohol brands, as concerns over alcohol’s negative effects on emotional wellbeing and sleep patterns are among key motivations for drinking low-/no-alcohol variants.
- Non-alcoholic drinks consumer behaviour: Concerns about alcohol affecting emotional wellbeing prompt usage of low-/no-alcohol drinks among 55% of UK drinkers.
Purchase the full report for a consumer-led analysis of the UK non-alcoholic drinks market, including full market dynamics and the latest innovation and marketing trends. Readers of this report may also be interested in Mintel’s UK Brand Overview: Drinks Market Report.
More About This Report
This report examines consumer usage of and attitudes towards low-/no-alcohol drinks. In the consumer research, this was defined to survey respondents as: “drinks designed as an alternative to standard alcoholic drinks. This includes lower- and non-alcoholic/alcohol-free beer, cider, wine and pre-mixed drinks as well as soft drinks designed specifically as an alternative to alcoholic drinks (eg Seedlip non-alcoholic spirit).”
Retail sales data is provided in the Market Size and Segmentation sections for the following segments:
- Low-/no-alcohol beer with an ABV of up to 1.2%
- No- and lower-alcohol wine with an ABV of less than 1%
- No-alcohol spirits alternatives
- Low-/no-alcohol cider with an ABV of up to 1%
- Low-/no-alcohol RTDs with an ABV of up to 1%
Meet The Expert
This report was written by Alice Baker, Food and Drink Analyst at Mintel. Alice analyses and writes on the UK Food & Drink sector, having joined Mintel in January 2016. She has previously worked for the International Meat Trade Association and in local government. She holds a BA in History and an MA in History of Political Thought from University College London.
Consumers’ desire to support their emotional wellbeing underpins the usage of low-/no-alcohol drinks, however concerns over price and sugar content pose barriers.
Alice Baker
Food and Drink Analyst
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Executive Summary
- Opportunities for low- and no-alcohol drinks
- Focus on at-home occasions to drive purchase as consumers’ financial recovery remains slow
- Addressing low-/no-alcohol drinks’ poor value image is crucial to boosting take-up
- Align with emotional wellbeing to drive purchase
- Market dynamics and outlook
- Market size & forecast
- Market predictions
- All low-/no-alcohol segments grow value and volume sales in 2024
- Graph 1: retail value sales of low- and no-alcohol drinks, by segment, 2022-24
- Guinness and other leading beer brands’ low-/no-alcohol variants grow sales, but face increased competition from own-label
- Graph 2: leading low-/no-alcohol beer brands’ retail sales, by value, 2021/22-23/24
- Low-/no-alcohol versions gain as prices for standard alcoholic drinks rise in 2023-24
- Increased government and consumer focus on health provides opportunities for low-/no-alcohol
- What consumers want and why
- Alcohol moderation and avoidance is widespread, led by younger adults
- Graph 3: alcohol reduction and non-usage*, 2022-24
- Usage of low-/no-alcohol drinks is up compared with 2023; under-35s and the financially better-off are the core users
- Graph 4: usage of standard, low-/lower-alcohol and non-alcoholic/alcohol-free drinks, 2022-24
- At-home occasions lead for low-/no-alcohol drinks
- Graph 5: usage occasions for low- and no-alcohol drinks, 2024
- Concerns about emotional wellbeing drive usage of low-/no-alcohol drinks; price and sugar are deterrents
- Graph 6: behaviours relating to low- and no-alcohol drinks, 2024
- Innovation and marketing
- Brand extensions continue in 2023-24; seasonal and own-label launches dial up the treat aspects
- Advertising spend on low-/no-alcohol drinks rises in 2023
- Graph 7: above-the-line, online display and direct mail advertising expenditure on low-/no-alcohol drinks, by leading advertisers, 2021-24
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Market Dynamics
- Market size
- Value and volume sales of low- and no-alcohol drinks soar over 2019-24
- Graph 8: retail value sales of low- and no-alcohol drinks, 2019-24
- Market forecast
- Continuing, though slowing, inflation to power value growth over 2024-29
- Recovering income growth and consumers’ renewed health focus to boost volume sales
- Further strong growth in value and volume sales expected for 2024-29
- Market segmentation
- All segments of the low-/no-alcohol category see rapid value and volume sales growth in 2024
- Graph 9: retail value sales of low- and no-alcohol drinks, by segment, 2022-24
- Market share
- Guinness 0.0 continues to lead the low-/no-alcohol beer retail market in 2023/24
- Graph 10: retail value sales of low- and no-alcohol beer, by top five brands and own-label, 2021/22-23/24
- Leading beer brands gain retail volume sales in 2023-24, but face increased competition from own-label
- Graph 11: retail value and volume sales growth/decline for the top five low-/no-alcohol beer brands and own-label, 2023/24*
- Raised public profile boosts Lucky Saint
- Retail value sales growth outpaces volume growth for leading low-/no-alcohol wine brands in 2023/24
- Graph 12: retail value sales of low- and no-alcohol wine, by top five brands and own-label, 2021/22-23/24
- Macro-economic factors
- Economic output has stagnated since the cost of living crisis began
- Graph 13: GDP, 2021-23
- Falling inflation has reduced pressure on household finances
- Graph 14: CPI inflation rate, 2021-24
- Interest rates expected to fall in 2024, but borrowing pressures will remain
- Food and drink prices still top the list of consumer concerns
- Graph 15: cost of living related issues noticed in the last two months, 2024
- Consumer sentiment: wellbeing is up but the recovery has slowed
- Graph 16: the financial wellbeing index, 2016-24
- Consumer confidence continues to trend upwards
- Graph 17: the financial confidence index, 2016-24
- Consumers’ financial health and confidence are key for sales of low-/no-alcohol drinks
- Alcohol inflation overtakes overall inflation in 2023
- Graph 18: RPI inflation in beer, wine and spirits and all-items, 2020-24
- Social, environmental and legal factors
- Changes to alcohol duties raise duty on higher-strength products, pushing up prices within the category
- Avoiding steeper price rises benefits low-/no-alcohol drinks through consumer switching
- Alcohol-specific deaths rise across most of the UK
- Graph 19: age-standardised alcohol-specific death rates per 100,000, by nation, 2018-22
- Consumers’ increased commitment to healthy eating will boost alcohol moderation
- Graph 20: how often people try to eat heathily, 2022-24
- Government considers change to alcohol labelling rules
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What Consumers Want and Why
- Alcohol usage and reduction
- Six in ten either limit or do not drink alcohol
- Graph 21: alcohol reduction and non-usage*, 2022-24
- Under-35s are the most likely to have cut back on alcohol
- Graph 22: alcohol reduction and non-usage, by age group, 2024
- Financial situation influences alcohol avoidance, but not recent moderation
- Graph 23: alcohol reduction and non-usage, by how people describe their household finances, 2024
- Usage of low-/lower-alcohol and no-alcohol drinks
- Low-/no-alcohol drinks have become increasingly mainstream
- Usage of low-/no-alcohol drinks is on the rise
- Graph 24: usage of standard, low-/lower- alcohol and non-alcoholic/alcohol-free drinks, 2022-24
- Alcohol moderation supports usage of low-/no-alcohol drinks
- Graph 25: usage of low-/lower- alcohol and non-alcoholic/alcohol-free drinks, by alcohol moderation in the last 12 months, 2024
- Under-35s are the core users of low-/no-alcohol drinks
- Graph 26: usage of standard, low-/lower- alcohol and non-alcoholic/alcohol-free drinks, by age group, 2024
- Usage of low-/no-alcohol drinks is higher among the financially better-off
- Graph 27: usage of standard, low-/lower- alcohol and non-alcoholic/alcohol-free drinks, by how people describe their household finances, 2024
- Beer and RTDs have the highest usage of low-/no-alcohol versions compared with standard
- Graph 28: usage of standard, low-/lower- alcohol and non-alcoholic/alcohol-free drinks, by category, 2024
- Usage occasions for low- and no-alcohol drinks
- At home usage leads for low-/no-alcohol drinks
- Graph 29: usage occasions for low- and no-alcohol drinks, 2024
- Marketing focus on at-home occasions remains relevant in 2024 amid subdued real income growth
- Focus on at-home occasions remains relevant in 2024
- Use in-store displays to prompt purchase for midweek occasions
- Link up with broadcast and streaming media to drive associations with evenings in
- Feature no-alcohol variants in promotions linked with international sports
- Use prompts at POS and dine-in deals to drive usage as a meal accompaniment
- Drive usage of low-/no-alcohol drinks with meals in the on-trade, as well as at retail
- Behaviours relating to low- and no-alcohol drinks
- Concerns about alcohol affecting emotional wellbeing prompt usage of low-/no-alcohol drinks among 55% of drinkers
- Graph 30: behaviours relating to low- and no-alcohol drinks, 2024
- Build associations with emotional wellbeing to drive purchase
- Concerns over alcohol’s effects on emotional wellbeing and sleep underpin usage of low-/no-alcohol drinks
- Further explore ingredients with relaxing associations
- Align with hobbies favoured by those seeking to relax
- Graph 31: participation in hobbies/interests in the last 12 months, by those who take part in their hobbies/interests to manage stress, 2022
- Strengthen low-/no-alcohol drinks’ value image to boost take-up
- Price is a barrier for low-/no-alcohol drinks usage, even for those with ‘healthy’ finances
- Graph 32: those saying that the price of low-/no-alcohol drinks puts them off drinking them/drinking them more often, by how people describe their household finances, 2024
- Offer smaller formats to drive trial of low-/no-alcohol drinks
- Offer shared discounts to harness the power of recommendations
- ‘Recommend a friend’ schemes can bring significant sales
- Concerns over sugar are a deterrent for low-/no-alcohol drinks
- Low-/no-alcohol drinks highlight their lower sugar
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Innovation And Marketing Trends
- Launch activity and innovation
- Leading brands add no-alcohol versions
- Beer brands continue to outline their dealcoholization methods
- Companies expand the range of varieties available in low-/no-alcohol
- Brands from other categories extend into alcohol alternatives
- Own-label no-/low-alcohol launches in 2023-24 emphasize their high quality and complex flavour profiles
- Collider adds adaptogenic beer
- Hazy beers trend extends into low-/no-alcohol
- More low-/no-alcohol beers appear in the on-trade
- Low-/no-alcohol brands look to expand their range of usage occasions through seasonal launches
- Advertising and marketing activity
- Advertising spend on low-/no–alcohol drinks rises sharply in 2023
- Graph 33: total above-the-line, online display and direct mail advertising on low-/no-alcohol drinks, by top three advertisers, 2021-24
- Diageo continues to lead on low-/no-alcohol advertising in 2023-24
- Diageo showcases its no-alcohol spirits alternatives for Dry January 2024
- Seedlip continues its focus on travel into 2024
- San Miguel aligns its alcohol-free variant with its wider focus on exploration and adventure
- Peroni recruits F1 drivers for ‘bank heist’ film parody
- Leading alcohol companies encourage mindful drinking
- Lucky Saint makes another big push for Dry January 2024
- Days Brewing raises its profile through TikTok videos…
- Graph 34: usage of Tik-Tok in the last three months, by age group, 2024
- …and criticises other brands’ marketing approaches
- CleanCo raises its profile through OOH and experiential campaigns
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Appendix
- Supplementary data
- Market segmentation
- Market share – beer – value sales
- Market share – beer – volume sales
- Market share – wine – value sales
- Market share – wine – volume sales
- Market share – cider
- Market share – spirit alternatives
- Market share – RTDs
- Market forecast data and methodology
- Market forecast and prediction intervals – values
- Market forecast and prediction intervals – volumes
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Methodology
- Consumer research methodology
- Nielsen Ad Intel coverage
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