The Rise of Low & No Alcohol Options – Why Diversifying Your Portfolio Range is Key for Growth
Low and no alcohol options are becoming increasingly popular as consumers become more conscious and aware of their health in a post-pandemic World. According to a recent article in Drinks Retailing, The low and no category in the UK is expected to reach a value of £1.3 billion by 2025.
It has been widely reported that 1 in 5 'millennials’ are eschewing alcohol - and although there is undeniably a growing number of people who are choosing not to drink all altogether, there is also an increasing number of individuals who are looking to ‘moderate’. The real opportunity for growth is here, within the audience that moderates - ie: approximately 80% of all adults. Within this very attractive and large segment lies the opportunity for non-alc variants of brands. Recent consumer data would suggest that up to 43% of consumers are looking to substitute their usual drink for a low/no option during certain occasions - that’s a lot of people!
Only a few years ago, abstaining from alcohol was only really faintly popular in January (largely to clear the excess of Christmas & New Year), there is now a year-round trend of consumers choosing not to drink or reduce their consumption, and therefore brands have a real opportunity to tap into this growing market, widening the occasions for consumption of their products.
If you haven’t already considered a low/no option for your brand, now is the time to start seriously considering your product development of a low/no alcohol extension to your product range as the market is set to increase by +8% compared to 0.7% for brands with alcohol over the next 3 years (IWSR Data).
What is most appealing to the consumer about low/no option is that it is inclusive. Thank fully we are well past the days where the only options if you were ‘not drinking’ ie: pregnant or driving was simply water or coke. The consumer expectation now is that they should be able to enjoy a glass of something equally as exciting and appealing as those around them.
Testament to the excitement and noise behind the no & low category - The Adult Non-Alcoholic Beverage Association (ANBA), has just launched a UK and European arm. The ANBA is a unified body that has been formed in order to be able to help the category grow. One of the objectives of the ANBA will be to increase space within retailers and improve awareness of this fast-moving category.
We are now starting to see non-alc options in a number of specialty retailers such as clothes stores, coffee bars and gyms. The UK government has also pledged to work with the drinks industry to “significantly increase” the availability of low & no alcohol products by 2025.
In summary, a very exciting category, double-digit growth, consumers crying out for it, trade, and government support…. What are you waiting for ?!