Goodbye alcohol: increase of 38% seen in alcohol-free spirits sales in the UK
According to newly released statistics, the volume of non-alcoholic spirits in the UK increased by 38% in 2017, with agave alternatives more than doubling in popularity.
According to recent statistics from IWSR Drinks Market Analysis, the category of no- and low-alcohol beverages sold in the UK had a growth of 9% in 2022. Between the years 2022 and 2026, it is anticipated that the industry will expand at a rate equivalent to a compound annual growth rate (CAGR) of 7%.
Susie Goldspink, who is in charge of no- and low-alcohol drinks at IWSR Drinks Market Analysis, says, “The UK is one of the most dynamic no- and low-alcohol markets, with new products coming out quickly and growth predictions that are higher than in many other countries.” “The UK is one of the most active no/low markets”
Although the majority of no/low innovation is still being produced by smaller firms, the introduction of no-alcohol variations by larger brands is helping to strengthen the sector’s credibility.
According to the IWSR, non-alcoholic “spirits” and apéritifs, in addition to zero-ABV agave products, “epitomize” the “fast-moving nature” of the alcohol-free market.
Goldspink continued by saying, “Full-strength Tequila sales have been riding the crest of a wave, and no-alcohol interpretations are appearing as an antidote to the crowded no-alcohol ‘gin’ and botanical spirits category.”
The volume of alcohol-free agave consumed in the UK has increased by more than 100% in the past year.
According to the IWSR, beer maintains its dominant position in the no/low market in the UK and commands the majority share of the no/low sector in terms of both volume and value. The market expanded by 8% in the previous year, and it is anticipated that the volume would expand by 7% (CAGR 2022-2026).
Alcohol-free products now outsell low-alcohol ones.
According to the IWSR, zero-ABV volumes increased by 23% between 2018 and 2021, and by 16% in 2022 alone. This growth was attributed to the fact that zero-ABV volumes surpassed low-ABV volumes in 2022 with a volume share of 51%.
In contrast, the number of low-alcohol drinks stayed the same from 2018 to 2021, but then went up slightly the next year.
According to the IWSR’s projections, the volume of alcohol-free beverages is expected to increase by 10% between 2022 and 2026, in comparison to a rise of 3% for low-alcohol beverages.
“Low-alcohol goods have more of a historical legacy presence in the UK,” says Goldspink. [Citation needed] “Overall volumes haven’t changed much in the past few years, and this market category is only expected to grow slowly over the next few years.”
“This is reinforced by the inclination of consumers to abstain from alcohol on particular occasions or altogether, with 54% of consumers embracing this strategy. This percentage of customers is increasing every year.
“No-alcohol goods, particularly those with a more premium positioning, have nearly single-handedly propelled market expansion over the previous five years, eventually surpassing low-alcohol products in 2022.” “No-alcohol products have a more premium positioning.”
Because the majority of product innovation and consumer demand is concentrated in this sector, it is anticipated that the sector will continue to have healthy growth in the years to come.
Soft drinks are still the most popular choice for customers who want to drink less alcohol, and about a third of customers chose a drink that didn’t have any alcohol in it. Based on what they found, the IWSR thinks this is an “opportunity for further development of the category.”
At music festivals and other types of outdoor events, young adults are also major consumers of no-and-low items.
According to the IWSR, during the year 2022, half of the adult population in the UK purchased a no or low product.
According to the IWSR, brick-and-mortar stores are a “critical channel” for the no- and low-alcohol industry in the UK. In 2022, brick-and-mortar stores will account for 85% and 73% of volumes, respectively. About ten percent of the category’s total revenue comes from online purchases.
Goldspink went on to say that “the brick-and-mortar off-trade dominates the UK no- and low-alcohol sales; nevertheless, with facings at a premium, acquiring and retaining product listings can be difficult, even for the big companies.”
“As a result, electronic commerce will continue to be a growth channel, both in omnichannel and no/low specialists,”