In the UK, post-Brexit changes have catalyzed a remarkable rise in low-alcohol beer sales, surpassing other countries.
- The UK market for low-alcohol beer has doubled, reaching 1.3 million hectolitres in 2023.
- Changes in the alcohol duty system have incentivized brewers to launch new products in the UK.
- Guinness 0.0 sales increased by 110%, making it the UK’s leading alcohol-free beer.
- The UK has risen from the 13th to the 8th largest global market for low-alcohol beer.
In the wake of Brexit, the UK has witnessed a substantial increase in low-alcohol beer sales, outpacing international markets. This surge has been significantly aided by modifications in the alcohol tax system. Currently, sales figures have doubled from 650,000 hectolitres in 2022 to nearly 1.3 million hectolitres in the span of a year. This dramatic growth reflects the market’s reception to the introduced changes.
Brands have strategically capitalized on the post-Brexit changes in the alcohol duty system. Since August 2023, beverages with less than 3.5% alcohol by volume (ABV) are subjected to a notably reduced tax rate compared to stronger alcoholic drinks. This adjustment has created a favorable business environment for brewers, encouraging new product launches.
Prominent brewers have quickly adapted to this evolving landscape. Notably, brands like Guinness and Heineken have launched new or improved versions of their low and no-alcohol beer options. This strategy is aimed at attracting the burgeoning demographic of consumers who are health-conscious and favor moderation in their drinking habits.
According to NIQ data from July, Guinness 0.0 has experienced an impressive 110% surge in off-trade sales, reaching a value of £33.2 million over the past year. This makes it the UK’s top-selling alcohol-free beer, surpassing competitors like Heineken.
This remarkable growth trajectory has positioned the UK as the eighth-largest market globally for low-strength beers, those containing less than 3.5% ABV, climbing from the 13th spot in 2022.
The UK’s strategic tax reforms and consumer trends collectively fuel the robust expansion of its low-alcohol beer market.
