2021
9
UK Beer Market Report 2021
2022-01-21T03:07:54+00:00
OX1048607
2195
147074
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Report
en_GB
“After a tough couple of years owing to the COVID-19 pandemic, beer brands can look to the future and tap into the sense of adventure felt amongst beer drinkers: 59%…

UK Beer Market Report 2021

£ 2,195 (Excl.Tax)

Description

The UK Beer report identifies consumer attitudes towards beer, beer drinking occasions, brand usage, and attitudes related to buying beer in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Beer industry in the UK. 

Current Market Landscape

The disruption caused by COVID-19 has severely hit on-trade sales of beer, with the channel losing half of its sales in 2020. With some on-trade occasions lost and others switching to the home, overall sales in the beer market saw double-digit volume declines in 2020, and fell by nearly a third by value. A sharp rebound followed in 2021, though on-trade closures and restrictions saw sales still lag far below the 2019 levels.

  • 70% of beer drinkers/buyers say they like to try beer from different countries (eg Italy, Spain)
  • 61% of drinkers/ buyers saying they’d like to see more beers from different regions available in supermarkets (eg South America).
  • 42% of drinkers/buyers agree there should be a wider variety of flavours in low-/non-alcoholic beer.

The interest in beers from different countries goes some way to explain the current success of continental lagers in recent years and points to considerable untapped potential. Signposting beers from different regions in-store is also likely to resonate.

Future Market Trends in Beer

The shift towards drinking in the home poses a longer-term threat to the on-trade, with price one of the main factors keeping people at home: 64% of drinkers/buyers agree the price of beer in pubs/ bars is off-putting. The pressure is therefore on operators to prove that they can provide an enhanced experience when drinking beer out of home.

The alcohol moderation trend continues to pose both a threat and an opportunity to beer. Lower calorie versions hold marked potential, with 46% of drinkers/buyers agreeing that drinking lower strength beers (eg 2.8% ABV) is a good way to cut down on calories. Flavour innovation would also be well-received, however reservations about taste remain a barrier with 52% agreeing low-/non-alcoholic beer doesn’t taste as good as standard beer.

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

Quickly understand

  • Types and variants of beer drunk.
  • Occasions when beer is drunk.
  • Perceptions and usage of selected brands in the beer market.
  • Behaviours and attitudes related to the drinking and buying of beer.

Covered in this report

Market Segments: Lager, ale (cask ale), alcoholic ginger beer, alcoholic bitter, stout.

Brands: AB InBev (Stella Artois, Budweiser, Corona, Becks, Bud Light), Heineken (Foster’s, John Smith’s, Birra Moretti, Kronenbourg 1664, Desperados, Amstel), Molson Coors (Carling, Coors, Sharps), Carlsberg (San Miguel, Carlsberg), Diageo (Guinness), Asahi (Peroni, Tyskie), S.A Damm (Estrella Damm), C&C (Tennents), Marston’s (Hobgoblin, McEwan’s), Abbot (Greene King), Adnams, BrewDog, John Smiths, Old Speckled Hen, Crabbies.

Expert analysis from a specialist in the field

This report, written by Amy Price, a leading analyst in the Food and Drink sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

After a tough couple of years owing to the COVID-19 pandemic, beer brands can look to the future and tap into the sense of adventure felt amongst beer drinkers: 59% say they enjoy experimenting with new types of beer. This indicates a pressing need for brands to continue to innovate in new areas in order to stem switching to other brands. Recommendations can here play a role, with 59% of beer drinkers/buyers saying recommendations on beers suiting their tastes would be appealing, rising to 74% among those who enjoy experimenting with new types, signalling that more guidance is needed even among those who are keen on exploration.

Amy Price
Senior Food and Drink 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 beer
      • Figure 1: Short, medium and long term impact of COVID-19 on beer, 2021
    • The market
    • Beer market sees a sharp recovery in 2021
    • Beer market expected to recover over 2021-26
      • Figure 2: Market forecast for value sales of beer, 2016-26
    • Lager dominates the market, being least severely hit by on-trade closures
      • Figure 3: UK value sales of beer, by type, 2019-21
    • Moderation trend poses a threat to beer but an opportunity for low/no versions
    • Companies and brands
    • Stella continues to lead lager in retail but continental lagers continue to perform well
      • Figure 4: UK retail value shares of the leading lager brands, 2020/21*
    • Guinness leads in ales and stouts; BrewDog sees strong growth
      • Figure 5: UK retail shares of the leading ale and stout brands, 2020/21*
    • Beer brands continue to look to low-/non-alcoholic versions
    • Sustainability remains on consumer and manufacturers’ radars
    • Advertisers up spend in 2021
    • Beer brands solicit near universal awareness but fall down on trust
      • Figure 6: Attitudes towards and usage of selected brands, 2021
    • The consumer
    • 63% drink beer; 39% at least weekly
      • Figure 7: Frequency of drinking beer, 2019-21
    • Almost seven in ten drink lager
      • Figure 8: Types of beer drunk, 2021
    • Craft is the most popular variety, followed by low-/non-alcoholic
      • Figure 9: Varieties of beer drunk, 2021
    • Beers should focus on moments of relaxation through communication
      • Figure 10: Occasions for drinking beer, 2021
    • 70% interested in beers from different countries
      • Figure 11: Behaviours related to beer, 2021
    • Majority interest in locally produced beer
      • Figure 12: Attitudes towards beer, 2021
  3. Issues and Insights

    • Majority interest in locally produced beer
    • Beer brands should push their environmental credentials
    • Beers should focus on moments of relaxation through communication
    • Recommendations offer a way for new beers to win people over
  4. Market Size and Performance

    • COVID-19 has marked impact on beer
      • Figure 13: Short, medium and long term impact of COVID-19 on beer, 2021
    • Beer market sees a sharp recovery in 2021
      • Figure 14: Market size for beer, 2016-21
  5. Market Forecast

    • Beer market expected to recover over 2021-26
      • Figure 15: Market forecast for value sales of beer, 2016-26
      • Figure 16: Market forecast for volume sales of beer, 2016-26
    • Market drivers and assumptions
      • Figure 17: Key drivers affecting Mintel’s market forecast, 2016-26
    • Forecast methodology
  6. Market Segmentation

    • Lager dominates the market; least severely hit by on-trade closures
      • Figure 18: UK value and volume sales of beer, by type, 2019-21
  7. Channels to Market

    • On-trade beer sales grow following 2020 collapse; off-trade still dominates volumes
      • Figure 19: Value and volume sales of beer, by channel, 2016-21
  8. Market Drivers

    • Duty frozen and overhaul planned
    • Rising inflation putting pressure on household finances
    • Moderation trend poses a threat to beer but an opportunity for low/no versions
    • Potential plans for calorie labelling for alcoholic drinks
    • COVID-19 restrictions fuel a sharp shift to at-home occasions for much of 2020 and 2021
    • Drop in young will affect beer sales; rise in 35-44s is good news
      • Figure 20: Trends in UK population, by age, 2015-20 and 2020-25
  9. Market Share

    • Stella continues to lead the lager segment in retail
    • Budweiser benefit from UEFA, Foster’s hit by trading up
    • Continental lagers continue to perform well
      • Figure 21: UK retail value and volume sales of the leading lager brands, 2018/19-2020/21
    • Guinness leads in ales and stouts; BrewDog sees strong growth
      • Figure 22: UK retail value and volume sales of the leading ale and stout brands, 2018/19-2020/21
  10. Launch Activity and Innovation

    • Asda launches in-store draught refills
    • Sustainability remains on consumer and manufacturer’s radars
    • Packaging is a focus as plastic removal continues
      • Figure 23: Beer brands look to reduce plastic packaging, 2021
    • Major players look beyond plastic
    • Beer brands push ethical credentials through charity tie-ups…
      • Figure 24: Beer brand pushes charity tie-up, 2021
    • …with a focus on waste/the environment
      • Figure 25: Carlsberg launches on-pack promotion in support of WWF, 2021
    • Beer brands continue to look to low-/no-alcohol versions
    • Stella reduces alcohol content to 4.6%
    • Heineken drops lower-calorie Amstel 66 and launches 0.0 on draught
    • Shandy brand looks to expand
    • Heineken goes compact
      • Figure 26: Heineken launches compact bottles, 2021
    • Craft brands look to flavour innovation
    • Sweet flavours are developed
      • Figure 27: BrewDog innovates on flavour, 2020-21
    • Beer brands look to rebrands
  11. Advertising and Marketing Activity

    • Advertisers up spend in 2021
      • Figure 28: Total above-the line, online display and direct mail advertising expenditure on beer, 2019-21
      • Figure 29: Total above-the line, online display and direct mail advertising expenditure on beer, by month, 2019-21
    • AB InBev leads on spend
    • Stella Tips supports hospitality industry
    • Bud Light pushes its position as official beer of the English football team…
    • …while Budweiser pushes renewable energy
      • Figure 30: Total above-the line, online display and direct mail advertising expenditure on beer, by top advertisers (sorted by 2021), 2019-21
    • Carlsberg continues to invest in advertising spend
      • Figure 31: Total above-the line, online display and direct mail advertising expenditure on beer, by brands (sorted by 2021), 2019-21
    • Pushing the occasions when 0.0 can be drunk
    • Working with WWF
      • Figure 32: Carlsberg’s snap packs, 2019
    • Birra Moretti launches The Home of Life’s Simple Pleasures campaign
    • Peroni courts English football drinkers with Three Leoni ad
    • …and teams up with Aston Martin
    • BrewDog pushes “beer for all” and green credentials in TV ad
    • Tennants’ campaign focuses on sustainability
    • Beavertown launches awareness campaign
    • Beer brands show support for pubs
    • Nielsen Ad Intel coverage
  12. Brand Research

    • Brand map
      • Figure 33: Attitudes towards and usage of selected brands, 2021
    • Key brand metrics
      • Figure 34: Key metrics for selected brands, 2021
    • Brand attitudes: BrewDog stands out as innovative; Guinness is most widely seen to offer high quality
      • Figure 35: Attitudes, by brand, 2021
    • Brand personality: lager brands are seen to be accessible by more than half
      • Figure 36: Brand personality – Macro image, 2021
    • Guinness is seen as the most traditional; BrewDog and San Miguel as the most stylish brands
      • Figure 37: Brand personality – Micro image, 2021
  13. Usage of Beer

    • 63% drink beer; 39% at least weekly
      • Figure 38: Frequency of drinking beer, 2019-21
    • Males aged 25-44 remain core drinkers of beer
      • Figure 39: Drinking beer once a week or more often, by gender and age, 2021
  14. Types of Beer Drunk

    • Almost seven in ten drink lager
      • Figure 40: Types of beer drunk, 2021
    • Men are more likely to drink ale and stout than women
      • Figure 41: Types of beer drunk, by gender, 2021
    • 25-44s more likely to drink lighter ales; over-55s darker ales
      • Figure 42: Types of beer drunk, by age, 2021
    • 53% drink just one type of beer
      • Figure 43: Number of different types of beer drunk in the last 3 months, 2021
  15. Varieties of Beer Drunk

    • Craft is the most popular variety, drunk by 38%
      • Figure 44: Varieties of beer drunk, 2021
    • Fruit-flavoured beer drunk by one in five
    • A quarter drink low-/no-alcohol beer
  16. Occasions

    • Beers should focus on moments of relaxation through communication
    • Linking with social occasions offers another way for beer brands to connect
      • Figure 45: Occasions for drinking beer, 2021
    • Pushing pairing recommendations holds potential for brands to tap food occasions
      • Figure 46: Beer brand calls out food pairing recommendation on back of pack, 2021
  17. Beer Behaviours

    • 70% interested in beers from different countries
    • Supermarkets need to do more to signpost beers from different regions
      • Figure 47: Behaviours related to beer, 2021
    • Beer must cater to consumers’ desire for variety
    • Recommendations offer a way to guide people to make new beer choices
    • Technology can help to guide beer drinkers
  18. Attitudes towards Beer

    • Majority interest in locally produced beer
    • Subscriptions offer a way for local brewers to tap into local interest
      • Figure 48: Attitudes towards beer, 2021
    • Lower ABV versions of beer appeal to the calorie-conscious
    • Low-/non-alcoholic beers still widely seen as not delivering on taste
    • Communications and NPD have a key role to play in combatting doubts over taste
      • Figure 49: European examples of flavour NPD in low-/non-alcoholic beer, 2021
    • Beer brands should push their environmental credentials
  19. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  20. Appendix – Market Size and Forecast

      • Figure 50: Market forecast and prediction intervals for UK value sales of beer, 2021-26
      • Figure 51: Market forecast and prediction intervals for UK volume sales of beer, 2021-26
  21. Appendix – Market Share

      • Figure 52: UK retail value and volume sales of the leading lager manufacturers, 2018/19-2020/21
      • Figure 53: UK retail value and volume sales of the leading ale and stout manufacturers, 2018/19-2020/21
  22. Appendix – Launch Activity and Innovation

      • Figure 54: New product launches in the beer market, by claim, 2016-21
      • Figure 55: New product launches in the beer market, by the ethical – Charity claim, 2016-21
  23. Appendix – Advertising and Marketing Activity

      • Figure 56: Total above-the line, online display and direct mail advertising expenditure on beer, by media type, 2019-21 (sorted by 2021)
      • Figure 57: Total above-the line, online display and direct mail advertising expenditure on beer, by category, 2019-21 (sorted by 2021)
      • Figure 58: Sports sponsorship advertising expenditure on beer, by advertiser, 2019-21 (sorted by 2021)
      • Figure 59: Sports sponsorship advertising expenditure on beer, by brand, 2019-21 (sorted by 2021)

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.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

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

Brand/Company

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.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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