Sales of non-alcoholic and low-alcohol beer are surging during the summer season as brewers strive to meet the increasing demand. This rise in popularity can be attributed to a growing desire, particularly among Generation Z and millennials, to lead healthier lifestyles. Additionally, premium brands are launching beers that are said to have a more authentic taste. Tesco has reported a 25% increase in sales of non-alcoholic and low-alcohol beer in June compared to the beginning of the year, indicating that going booze-free is no longer limited to just a “dry January” trend.
To cater to the growing consumer preference for non-alcoholic drinks, Guinness has announced plans to almost triple production of its zero-alcohol brand at its Dublin brewery. Guinness 0.0, which was launched in 2021, is currently the top-selling non-alcoholic beer in four-pack format in Great Britain. In pubs, sales of low and no-alcohol beer have spiked by 23% in the past year compared to the previous 12 months, and have more than doubled since 2019, before the pandemic, according to the British Beer and Pub Association. A staggering 85% of UK pubs, approximately 39,000 establishments, now offer at least one low- or no-alcohol beer alongside their regular alcohol-free options.
The IWSR, a drinks market analysis company, reveals that half of the UK adult population purchased a no-alcohol or low-alcohol product in 2022, resulting in a 9% volume increase compared to the previous year. The IWSR describes the UK as one of the world’s most dynamic markets for non-alcoholic and low-alcohol beverages. Tesco’s beer buyer, Jess Edmondson, attributes the current boom to the wide availability of authentic-tasting products created by brewers using high-quality ingredients and advanced methods. Shoppers can now enjoy fuller-bodied equivalents that closely resemble their alcoholic counterparts.
As these products gain popularity, there is a new trend emerging where consumers are buying in bulk rather than opting for single cans or bottles. Lucky Saint, an alcohol-free brand, experienced a staggering 180% growth in volume over the past year. In fact, Lucky Saint even opened its own pub, appropriately named the Lucky Saint, in London earlier this year. Founder Luke Boase believes that the stigma around not drinking is fading, leading to a rapid shift in attitudes towards alcohol.
There has been a surge of beer brands entering the low- and no-alcohol market. For instance, Asahi introduced an alcohol-free version of its Super Dry brand in the UK at the beginning of this year, perfectly timed to coincide with dry January. Independent brewers have also rolled out a variety of alcohol-free IPAs, stouts, ales, and craft lagers over the past year.
Emma McClarkin, the chief executive of the British Beer and Pub Association, emphasizes the significant growth potential in the low- and no-alcohol beer sector. Breweries in the UK are at the forefront of innovation, employing new technologies, techniques, and flavors to cater to evolving consumer preferences.
Despite the surge in popularity, low- and no-alcohol beer, which includes beverages with alcohol content up to 1.2% ABV, represents only 0.7% of total beer sales in the UK.
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