Low and no ABV beverages Guiding the Western EUROPE Spirits Sector

Producers in Western Europe are capitalizing on the health and wellness trend that the industry is continuing to see grow, by expanding their portfolios in the low and no ABV products.

“After what was a tumultuous 2020, consumers are more determined than ever to maintain a healthy, moderate lifestyle that promotes balance, both physically and emotionally. Starting this was of course ‘Dry January’,” says Holly Inglis, Beverages Analyst at GlobalData.

Between 2020 and 2024, low ABV products in the Western Europe Spirits sector will rise at a compound annual growth rate (CAGR) of 2.6 percent, according to GlobalData.  

According to their research, between 2015 and 2020, innovations in beer and cider products with an ABV equal to and below 0.5 percent grew by 8.4 percent and 9.3 percent, respectively, across Western Europe.

“Mental health is a rising concern within the consumer sphere, which has gained particular focus in light of the COVID-19 pandemic,” continues Inglis. “In August 2020, Folklore Distillery released a limited-edition charity bottle to support mental health charities, MIND Foundation and Blurt Foundation, a timely release when much of the UK was struggling after the effects of the first national lockdown.”

Beer brands have leveraged the ‘healthier’ and ‘more responsible’ position of their low ABV offerings to promote mental health awareness. UK based company, Bristol Beer Factory, launched a non-alcoholic beer, Clear Head, in partnership with mental support network, Talk Club. This launch also follows Heineken’s replacement of Amstel with Heineken 0.0% to sponsor the UEFA Europa League in 2020. This initiative coupled with continued NoLo launches reinforces manufacturers’ social commitment to supporting the consumption of alcohol in moderation.

GlobalData’s 2019 consumer survey indicated that over half (54%) of European respondents find “alcoholic drinks with low or no alcohol” somewhat or very appealing, insinuating that this trend is here to stay.

“Consumers remain extremely experimental, with premium innovations driving this trend. NoLo alcohol spirits naturally have a premium positioning, with a ‘natural halo’ offering the consumer a sophisticated drinking experience, and volume is expected to reach 0.12 million litres by 2024.”