Stryyk research

Part
01
of four
Part
01

Non-Alcoholic Drinks in the UK - Popularity

Non-alcoholic drinks are becoming increasingly popular in the UK, with revenue rising 2% in 2019 to £28.683 billion. Despite soft drinks still representing the largest percentage, non-alcoholic beer is the fastest growing segment with 39% increase in revenue and 21% in volume. Growing concerns among the UK population about health and well-being are behind this trend, which has Millennials and Gen Zers as the leading audiences.

POPULARITY OF NON-ALCOHOLIC DRINKS

  • Non-alcoholic drinks are growing in popularity in the UK, with revenue of the segment rising 2% in 2019 to £28.683 billion (US$36.225 billion) total, and £428.37 (US$541) per person (1.4% growth annual).
  • The largest segment is soft drinks £24.443 billion (US$30.870 billion), followed by juices and bottled water.
  • Non-alcoholic beer (which includes any beer under 1.2% alcohol) is also having a spike in sales, reaching £57 million (US$71.987 million) in the 12 months to April 2019. This represents an annual 39% growth.
  • Volume of non-alcoholic beer spiked to 12.2 million pints, up 21% year-on-year, in 2018.
  • Consumption of non-alcoholic wines (under 5.5% alcohol) is also up to £48 million (US$60.62 million) in revenue in 2018, as well as non-alcoholic spirits, at £5 million (US$6.31 million).
  • These products are expected to grow even more: the low/no-alcohol category CAGR through 2022 is expected to be 81.1% for spirits, 6.6% for wine and 4.9% for beer.

MOTIVATION

  • The main reason for consumers in the UK to switch to non-alcoholic beverages (or low-alcoholic) is health. According to Nielsen, an increase in health-consciousness in the country is what is leading this interest in non-alcoholic drinks.
  • Consumption has also increased aided by the widening of selection of non-alcoholic drinks in establishments across the UK, which furthers consumers' conviction to stay off alcohol.
  • Several celebrities have also begun endorsing a sober life, which increase awareness and attention to the lifestyle.
  • The number of Brits who do not drink at all increased 35% in five years, to the current 5.4 million.
  • Over 25% of the UK population wants to cut down on alcohol consumption. This number goes up to 65% in the 25 to 34 population.
  • Despite soft drinks leading the non-alcoholic drinks market, many shoppers are also aware of how sugar affects their health — meaning they turn instead to a non-alcoholic version of spirits.

KEY AUDIENCES

  • In terms of non-alcoholic drinks, Millennials and Gen Zers are the leading audiences.
  • Millennials head the sober pack, with 34% saying to be always influenced by how a product affects their health when purchasing alcohol. They are also the most interested in cutting down alcohol, with 65% of them saying they want to consume less (compared to 25% of the total population).
  • Gen Zers are reaching adulthood already health-conscious: young people, aged 18 to 24 are more likely than any other group to not drink, and around a fifth do not consume any alcohol at all. A Global Data survey found that 37% said to be often influenced by how a product affects their health and well-being when purchasing an alcoholic drinks.
  • Despite the non-alcoholic trend starting with health conscious Brits, citizens in all age groups and all interests show signs of wanting to drop alcohol consumption, according to Nielsen.


Part
02
of four
Part
02

Non-Alcoholic Drinks in the UK - Trends

The trends in the UK low/non-alcohol drinks industry involve nonalcoholic spirits, beer, wine, cider, and ready-to-drink (RTD) beverages. The reason why the following trends are growing in popularity is because millennials are driving the push towards healthier and less to no alcohol drinks.

TREND #1: NonAlcholic spirits

  • A new company called Seedlip have seen great success in their nonalcoholic spirits. Their products have reached over 6,000 bars in a span of three years.
  • The Compound Annual Growth Rate (CAGR) of nonalcoholic spirits is expected to grow by 2022 (81.1%).
  • This trend is driven by consumers becoming more dedicated to their well-being, focusing more on the event being celebrated rather than doing some heavy drinking, and the desire to try new flavors.

TREND #2: Nonalcoholic beer

  • At the end of 2017, consumption of nonalcoholic beer saw a 13% growth, which was impressive considering the market was niche at that time in the UK.
  • By 2022, the CAGR of nonalcoholic beer is expected to post a growth of 4.9%.
  • This trend is propelled by thirty-seven percent of consumers aged 18-24 who base their choice of drink on how it affects their health and well-being.

TREND #3: nonalcoholic cider

  • In 2018, fruit cider generated a 38% volume growth and a 41.4% value growth.
  • By 2022, the CAGR of nonalcoholic cider is expected to grow by 13%.
  • This trend is driven by consumers who want to know what they are drinking and by those who do not mind spending a little extra for natural ingredients.

TREND #4: nonalcoholic wine

  • Nonalcoholic wine achieved over six million bottles in sales in the UK in 2017.
  • By 2022, the CAGR of nonalcoholic wine is expected to grow by 6.6 %.
  • This trend is propelled by consumers who aim to cut down their alcohol consumption.

TREND #5: nonalcoholic rTD beverage

  • By 2022, the CAGR of nonalcoholic RTD beverage is expected to grow by 44.3%.
  • The main driver of this trend is that RTD beverages satisfy the demand of people who want to have fun with friends while drinking, without having to spend a lot of money.
Part
03
of four
Part
03

Non-Alcoholic Drinks in the UK - News

We have provided seven news articles that are relevant to the low/non-alcohol drinks industry in the UK, over the past 2 years. They include reports on the growing market size and popularity in the UK.

1. Health-conscious Britons boost alcohol-free drink sales to record high

  • The sales of non-alcoholic drinks such as beer, wine and spirits in the UK have reached a record high and growing numbers of manufacturers in London are working to maximize the opportunity provided by the £100 million industry.
  • According to a market research report by Nielsen, Britons spent a record amount of £57 million within 12 months leading to April on the purchase of low or non-alcoholic beers. This is a 39% increase and is equivalent to the consumption of 12.5 million pints.
  • Britons also spent £48 million on the purchase of low or non-alcohol wines within the same period. The non-alcoholic spirits market segment is just three years old but is now valued at £5 million.
  • This news story was included because it provided hard data on the growing popularity of the low/non-alcohol drinks industry in the UK.

2. Low- And No-Alcohol Beverages Are A Growing Trend Worldwide, Says New Report

  • According to the 2019 “Low- and No-Alcohol Report” by UK-based International Wines and Spirits Record (IWSR), 65% of alcohol consumers in the UK aged 25 to 34 “are trying or have tried to cut back on their alcohol intake.”
  • The report noted that non-alcoholic beer was not even seen in pubs and supermarkets in the U.K. ten years ago. But today, several bars in London have provided a machine that dispenses non-alcoholic beer to customers.
  • The spirits subsegment of the UK low/non-alcohol market is expected to grow at a CAGR of 81.1%. Similarly, ready-to-drink products will experience a growth of 44.3%; cider: 13%; wine: 6.6%; and beer: 4.9% by 2022.
  • This news story was included because it also provided hard data on the growing popularity of the low/non-alcohol drinks industry in the UK. It contains specific demographic data regarding consumers in the UK aged 25 to 34.

3. Mindful drinking: the role of low and no alcohol drinks?

  • Reports showed that the sales of low and non-alcohol drinks in the UK have been rising rapidly, reaching £83 million in 2018 and grew by 24% from the previous year.
  • According to a Nielsen survey, 25% of UK adults are actively planning to reduce their drinking. Similarly, Drinkaware Monitor found that 16% stated that they were currently modifying their drinking habits.
  • From the Drinkaware Monitor survey, the strategies of 'mindful drinkers', who are seeking to cut down on their alcohol consumption include taking alcohol free days during the week (72%), taking soft drinks or water (53%), consuming lower strength drinks (34%), and drinking alcohol-free substitutes (29%).
  • This news story was included because it also provided hard data on the growing popularity of the low/non-alcohol drinks industry in the UK. It gives insights into the behavior of 'mindful drinkers'.

4. Dry January: Why you should give non-alcoholic beer another chance this year

  • The Dry January movement have experienced significant growth.
  • Dry January was introduced in 2012 by Alcohol Change UK with 4,000 participants. This year around 4.2 million people took the pledged not to take a drop of alcohol until February, an increase of 1.1 million people from 2018.
  • Three craft breweries dedicated to low-alcohol have been established in the UK in recent years. They are Nirvana, Big Drop and Infinite Session and they all aim to eliminate preconceptions through the production of bold, flavorful modern brands.
  • This news story was included because it talks about the popularity of the Dry January movement which has contributed to the campaign to reduce the intake of alcohol in the UK. It also included information on the growing trend of low-alcohol craft breweries in the UK.

5. UK students shun alcohol-free options as sobriety goes mainstream - survey

  • A survey by The Hype Collective found that UK students are rejecting alcohol-free beer and spirits for cheaper drinks like water or soft drinks.
  • 80% of the surveyed students stated that they “would not feel self-conscious about requesting a non-alcoholic drink in a bar, or feel pressure to drink at all”.
  • Students do not drink alcohol-free beer because they have not developed beer-drinking habits like older consumers. Hence, non-alcohol beer is an ineffective replacement.
  • Although they do not drink as much as students of ten years ago, students still see the union bar or a pub close to them as the most common place where they meet and socialize with friends.
  • This news story was included because it points out that most UK students are not part of the low/non-alcohol drinks market as they have not developed beer-drinking habits.

6. Diageo thinks the UK’s drinks industry could be worth £47bn by 2022 here’s why

  • The low alcohol drinks market will account for an extra £5 billion in the UK alcohol industry by 2022, reaching a value of £46.7 billion, according to the Diageo Drinks Report.
  • The report found that more than six million Britons do not consume alcohol, a rise of 59% from the previous year. But this is seen as a business opportunity instead of a threat because producers like Diageo are now investing in low alcohol drinks.
  • The report noted that UK consumers are seeking “more health, craft and sustainability products.”
  • This news story was included because it also provided hard data on the growing popularity of the low/non-alcohol drinks industry in the UK.

7. Non-alcoholic beer sales rose to £7.6 million over Christmas

  • Supermarkets in the UK made around £8 million within the Christmas period and £29.3 billion within the 12 weeks leading to the end of December 2018, from the sales of non-alcoholic beer.
  • Many breweries in the UK have invested in their low alcohol brands over the past year to meet the demand for non-alcohol drinks.
  • More than 50% of Brits who participated in a OnePoll survey stated they have taken at least tried one non-alcoholic drink, while 52% believed that “non-alcohol beer has become more socially acceptable in the past two years”.
  • This news story was included because it also provided hard data on the growing popularity of the low/non-alcohol drinks industry in the UK, especially around the Christmas season.
Part
04
of four
Part
04

Non-Alcoholic Drinks in the UK - Key Marketing Messages

Seven key marketing messages/campaigns from non-alcoholic spirits in the U.K. over the past five years are (1) "Now You Can," (2) "Who do you 0,0 with?," (3) "Say Yes," (4) "Beck's Blue Monday," (5) "Open to All," (6) "The Alt-Jan Movement," and (7) Budweiser Prohibition.

findings

1. Heineken "now you can"

  • "Now You Can" is a key marketing message/campaign from non-alcoholic spirits in the U.K. over the past five years.
  • This campaign from Heineken centered around the idea of Heineken 0.0 being a great beverage choice for many occasions.
  • This integrated campaign included "TV commercials, cinema, digital and social activations, as well as on and off trade promotions."
  • We included this as a key marketing message/campaign because it is "the biggest ever campaign for an alcohol-free beer in the UK."

2. San Miguel "who do you 0,0 with?"

  • "Who do you 0,0 with?" is a key marketing message/campaign from non-alcoholic spirits in the U.K. over the past five years.
  • This campaign from San Miguel was exclusively conducted out-of-home and focused on attracting consumers who live active lifestyles. As such, in the second half of 2019, the campaign would be featured within U.K. gyms.
  • The out-of-home ads comprising this campaign featured "images of runners, cyclists and yoga fans."
  • We included this as a key marketing message/campaign because of its reach, as it was set to be displayed at 1,840 sites across Manchester, London, and Birmingham in 2019.

3. heineken "Say Yes"

  • "Say Yes" is a key marketing message/campaign from non-alcoholic spirits in the U.K. over the past five years.
  • This campaign from Heineken featured three alcohol-free products, which were Heineken 0.0, Old Mount Cider (alcohol-free), Birra Moretti Zero.
  • The campaign was set to run for a year's time in six-week intervals.
  • The channels that the campaign included in the U.K. were online, in-store, and out-of-home.
  • We included this as a key marketing message/campaign because, at the time, it was Heineken's largest "investment in low and no alcohol."

4. "Beck's Blue Monday"

  • "Beck's Blue Monday" is a key marketing campaign from non-alcoholic spirits in the U.K. over the past five years.
  • This campaign from Beck's Blue was designed to encourage Britons to get "out of the house and in to their local [pubs] with the offer of a free bottle of Beck’s Blue" for a week in January, as a way to "remind[] punters they can still enjoy the pub without the alcohol."
  • Beck's Blue chose January for this marketing campaign as a way to cheer people up after the holiday season and to encourage them to keep alcohol-free New Year's resolutions.
  • In total, over 1,000 U.K. bars/pubs participated in "Beck's Blue Monday."
  • We included this as a key marketing campaign for this category because Beck's Blue "accounts for 65% of low-to-no-alcohol beer sales in pubs and bars in" the U.K.

5. Heineken "open to all"

  • "Open to All" is a key marketing message/campaign from non-alcoholic spirits in the U.K. over the past five years.
  • This campaign from Heineken included several commercials, which promoted "Heineken's first alcohol-free beers."
  • The focal points of the campaign were inclusion and humor, in an effort by Heineken to target its key demographic for such non-alcoholic spirits products.
  • We included this as a key marketing message/campaign for this category because it included a series of several commercials and Heineken's alcohol-free beverage line (0.0) is "the fastest growing brand in the alcohol-free segment."

6. Ceder's "the alt-jan movement"

  • "The Alt-Jan Movement" is a key marketing campaign from non-alcoholic spirits in the U.K. over the past five years.
  • This campaign from non-alcoholic gin company Ceder's included a collaboration with Lisa Faulkner, who is a television chef/actress.
  • The campaign was centered around "Dry January [which] is the UK's one-month booze-free challenge that helps millions reset their relationship with alcohol every year."
  • The campaign also included social media engagement featuring tips "to help . . . [people successfully] complete Dry January."
  • Consumers who shared stories on social media as part of the campaign were eligible to win a prize, which was "a year’s supply of Ceder's Alt-Gin."
  • We included this as a key marketing campaign for this category because Ceder's Alt-Gin is distributed by Pernod Ricard, which is a major manufacturer of spirits in the U.K. and elsewhere.

7. Budweiser Prohibition

  • The Budweiser Prohibition campaign is a key marketing campaign from non-alcoholic spirits in the U.K. over the past five years.
  • The campaign from Budweiser was a combination of out-of-home advertising and social media/digital content.
  • The out-of-home elements involved U.K. celebrity Gabby Allen who traveled across the U.K. giving consumers free Budweiser Prohibition Brews. In total, many tens of thousands of product samples were distributed throughout the U.K.
  • Additionally, the brand participated in the Street Feast event where it held a test taste promoting the product.
  • With regard to the digital content produced as part of the campaign, the social media channels used were YouTube, Facebook, and Instagram.
  • We included this campaign as a key marketing campaign for this category because of its significant reach across the U.K., as demonstrated by the tens of thousands of free samples distributed to UK consumers. For example, 50,000 free samples were distributed at four different transportation stations in London.

your research team applied the following strategy:

We found the above messages/campaigns primarily by looking for articles about non-alcoholic spirits marketing campaigns in the U.K. in the past few years. Some of the sources we used for such were Campaign Live, LBB, and Promo Marketing. We also found some information included above by looking for lists of popular non-alcoholic spirits in the U.K. and we then used that information to look up any campaigns promoting those products. We included the reason(s) why we classified each of the above as a key message/campaign in the U.K. in its respective section within our findings.
Sources
Sources