As consumers’ drinking habits change, the market for alcohol free and low ABV drinks is expanding rapidly.
By Sarah Britton
What was once a miniscule subsegment, is now awash with big brands as the drinks industry caters for consumers’ growing demand for low and no alcohol.
“Scotland is seeing a clear shift toward mindful consumption, with three in four consumers committed to moderating their alcohol intake,” says Andrew Niven, Strategic Market Intelligence Manager at The Knowledge Bank. “Over half (56%) are actively looking to reduce it, whereas last year just 28% said the same.”
He adds: “Impulse sales have increased for the Low & No category in Scotland, which now holds nearly a 10% share of the Low & No beer market. We attribute this mainly to increased distribution, highlighting that convenience is a key method of reaching mindful drinkers year-round.”
Low & no alcohol options have been thriving for some time in the UK grocery channel, but as choice and quality continue to improve in the convenience space, the category is now seeing similar success in the impulse channel, up 24.2% in value and 15.5% in volume [Circana Data – 52 weeks to 01.09.24 Total Impulse data], highlights BrewDog.
“In fact, as more sober-curious shoppers expand their search for alternatives into additional channels, this subsegment of beer is currently outperforming total beer in impulse [ibid],” says Caitlin Brown, Off-Trade Category Development Executive at BrewDog, which holds two of the top 10 sellers within alcohol-free beer.
Kingfisher Drinks rolled out Kingfisher Zero last November and claims that consumer views on Low & No have dramatically improved.
“Consumer perceptions of the No & Low category have changed considerably in recent years, having gone from being seen as a bit of a fad which doesn’t taste very nice, to something now that is enjoyable in its own right,” says Kingfisher’s Head of Marketing John Price.
Nevertheless, Accolade Wines argues that poor perceptions remain an issue, meaning further opportunities to grow Low & No. “Twenty-eight per cent of category drinkers would be persuaded to buy non-alcoholic/alcohol-free drinks, if they had a similar taste to that of their alcoholic counterparts, delivering similar complex flavours and taste profiles [Mintel – Attitudes towards Low- and No-Alcohol Drinks – UK – 2023],” says Tom Smith, Marketing Director – Europe. Hardys Zero uses de-alcoholising technology, which removes the alcohol but retains the brand’s taste credentials, he adds.
Price is another barrier, suggests Nick Gillett, MD at Mangrove Global, which distributes Almave non-alcoholic agave blue spirit. He says: “Price is still a sticking point, as people just don’t want to pay the same amount for a product that’s alcohol free.”
But despite these obstacles, Low & No continues to flourish. Price concludes: “I can only imagine the market for these kinds of drinks will continue to grow in importance and will become a key part of any convenience retailer’s drinks offer.”
A massive 90% of alcohol-free drinkers also consume alcoholic beverages, states BrewDog, which makes Punk AF.
“People are not simply replacing alcohol options with non-alcohol; but expanding their repertoire to add a new drink option on days they don’t want to ‘drink’, seeing a new culture of on/off day consumption,” says Off-Trade Category Development Executive Caitlin Brown.
Gordon’s new Mix It Up TV ad illustrates the trend, showing a group of friends switching between Gordon’s Pink and Gordon’s Pink 0.0%.
Tayara Sousa Linke, Global Head of Marketing at Gordon’s, says: “When creating this campaign, we wanted to demonstrate that moderation didn’t have to be a binary decision between having something alcoholic or alcohol free.”
