At this particular juncture, we are once again encountering the onset of Dry January, a period during which individuals commit to abstaining from alcohol for the entire month. What was once considered a temporary phenomenon has now evolved into a year-round trend. As a result, in response to the escalating demand for low and no alcohol beverages, it has become imperative for retailers to extend their focus beyond the confines of January in order to sustain consistent sales.
As per the findings of KAM data, an overwhelming three out of every four adults in the United Kingdom are actively seeking to curtail their alcohol consumption. Consequently, this has precipitated a surge in the popularity of no and low alcohol beverages, which have now become a routine preference for many individuals. Becky Kean, the dynamic founder of Nirvana Brewery, asserts that the ongoing demand for these products has surpassed all previous records. “The incorporation of low/no beers into individuals’ drinking habits, whether within their homes or in social settings, has become an integral aspect of their lifestyle,” she remarks.
The market for no and low alcohol beverages in the UK has exhibited steady expansion, with the renowned IWSR projecting an 8% increase in volume over the forthcoming years. Millennials constitute the primary demographic of consumers of no and low alcohol drinks, a segment that, according to the IWSR, demonstrates a higher frequency of purchase relative to other age groups.
Given the escalating demand for such libations, it behooves retailers to expand their product offerings. NICE wine, for instance, has introduced Session wine to cater to customers seeking to moderate their alcohol consumption. Lucy Busk, the astute founder of NICE wine, emphasizes that moderating alcohol consumption is not merely a passing phenomenon linked to Dry January; rather, it represents an enduring lifestyle choice for numerous individuals.
In order to attract a wider customer base, retailers can consider implementing in-store tastings and special promotional activities. Of particular interest is the niche of high-quality low-alcohol wine, which has experienced substantial growth in recent years. Producers of beer, such as Nirvana Brewery, also advocate for the provision of an extensive selection of beverages, including seasonal and limited edition brews, to sustain customer interest.
The prevailing trend underscores a shift towards moderation as opposed to complete abstinence, thereby propelling the momentum behind the no and low alcohol movement. Research conducted by IWSR reveals that 79% of consumers of no and low alcohol products also consume full-strength alcohol, implying that they are substituting their drinks in order to diminish their overall alcohol intake.
Furthermore, functional benefits have assumed a pivotal role in the marketing of these products. Brands like TRIP have placed emphasis on incorporating mood-altering elements, such as CBD oil, to create beverages that yield relaxing and calming effects.
Looking ahead, there exists the potential for a revised definition of ‘alcohol-free’ within the UK. Presently, a consultation is in progress regarding the proposal to elevate the minimum threshold from 0.05% to 0.5% ABV, to bring it in line with other countries such as the USA, New Zealand, Germany, and Australia. Public health minister Neil O’Brien is of the opinion that this adjustment could serve to accelerate the popularity and accessibility of no and low alcohol beverages, thereby bolstering their growth.
Against the backdrop of the burgeoning demand for no and low alcohol beverages, retailers are presented with a significant opportunity to capitalize on this burgeoning market. By diversifying their product portfolio, investing in strategic marketing initiatives, and staying attuned to evolving consumer trends, they can ensure a sustained flow of sales, not only during Dry January, but throughout the entire year.
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