Latest IWSR data shows that no-alcohol beer remains the most dynamic no/low segment in the UK, while growth in no-alcohol wine and spirits has slowed

Market performance

• • • The total UK no/low market is expected to have more than doubled in 2024 versus 2023.
    • Duty changes and beer-focused ABV realignments have delivered a one-off boost to low-alcohol volumes in the past couple of years, but sales are expected to flatline in the longer term.
    • The growing popularity and increasing availability of no-alcohol beer continues to be the driver of organic growth. Preliminary data shows no-alcohol beer grew 20% in 2024 vs 2023.
    • Volumes of the total no-alcohol market are expected to grow at CAGR of +7% between 2024 and 2028.
    • No-alcohol beer now accounts for more than 2% of the UK’s total beverage alcohol market sales.
    • Growth of no-alcohol spirits has slowed, but is expected to have grown +7% in 2024 vs 2023.
    • While sales of low-alcohol wine fell -5% in 2024 vs 2023, no-alcohol wine grew by +8%.

Premiumisation

• • • Premium-and-above brands account for two-thirds of no-alcohol beer volume and are a fulcrum of growth.
    • No-alcohol wine is dominated by value-oriented legacy brand-lines. Standard and premium brands are growing faster and are the source of greater levels of innovation, but from small bases.

Consumer attitudes

• • • Recruitment has increased in the past year, with more buyers drinking both no- and low-alcohol beverages, as quality and availability improves, and the wellness trend continues.
    • UK no/low buyers are skewed towards younger legal drinking age (LDA) groups, with an even gender split, and are more likely than non-buyers of the category to be higher earners.
    • Boomers account for one in four no/low buyers and are more likely than other age groups to be Triallers, drinking no and low-alcohol beverages only occasionally.
    • Boomers are most likely to expect to pay less for no-alcohol than full-strength equivalents, or to be unsure about pricing.
    • No-alcohol beer and cider are among the least popular beverages among younger LDA groups, with only 22% of Gen Zs purchasing them.
    • No/low has increased its on-trade presence, but much of the marketing muscle is expended on no-alcohol beer, which skews towards Gen X and Boomers and has less resonance among trendsetting younger audiences.

Barriers to growth

• • • Despite an improvement in recent years, the availability of no- and low-alcohol products is still a barrier to greater consumption.
    • Securing and maintaining shelf-space in retail is increasingly challenging, particularly against the large presence of no-alcohol beer.

Innovation

• • • Recent launches are pushing the limits of traditional no-alcohol segments, with brands creating innovative alternatives using a diverse range of natural ingredients and boasting health benefits, such as Botivo, a botanical aperitivo that blends botanicals with aged apple cider vinegar and honey; and Collider, a no-alcohol beer infused with functional mushrooms and botanicals.
    • The no/low wine market is seeing a shift from NPD at lower-end prices to more premium products. NPD also focuses on the production process, such as Bolle’s double fermentation approach; Nozeco’s claimed advanced dealcoholization process; and the use of green tea in the fermentation of Kylie Minogue’s no-alcohol Sparkling Blanc wine.

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SOURCE: IWSR (Press Release)
PHOTO CREDIT: IWSR