Many brewers now have an alcohol-free option
Party season may be muted by the Covid restrictions but they are not the only reason why more of us will be starting the new year with a clear head. An increasing number are going alcohol-free and the trend is having a huge impact on the drinks industry.
Dry January heralds the annual abstention following Hogmanay celebrations, but for many people it will just be another month to enjoy low or no alcohol drinks. Consumption in the alcohol-free market is on an upward curve with web searches soaring by as much as a half and the worldwide market expected to grow from $923 million last year to $1.7 trillion by 2028.
The surge in demand is a result of a combination of factors including a desire for healthier lifestyles and the improved quality of the alcohol-free product range.
At a time of heightened health awareness, many consumers have latched on to data showing that high alcohol consumption can impair our immune system, making it easier to catch colds and other illnesses. There is also heightened awareness of mental health. While a glass or two of wine or beer make us feel relaxed in the short-term, regular, heavy drinking contributes to feelings of depression, anxiety and stress.
Even before the onset of Covid, changes in behaviour have been driving demand for more acceptable alternatives to alcohol. Long boozy lunches have become largely a thing of the past, consigned to a past era alongside drink-driving and all-nighters.
Alcohol consumption has been in a steady decline since the mid-2000s with the fourth annual YouGov commissioned study by the Portman Group finding almost one in three (32%) UK drinkers now ‘semi-regularly’ consume low and no alcohol products compared to one in four (25%) in 2020.
Furthermore, a fifth (20%) of those who have tried low and no alcohol say they are more likely to drink these products now compared to a year ago, almost double the number saying this in last year’s survey (11%).
Contrary to the popular image of young people being most likely to over-indulge, the fall in consumption has been greatest among the under-25 age range. Almost one in four young people have become teetotal, according to the latest Society of Independent Brewers’ British Craft Beer Report. This trend among a demographic which still likes to party has been hugely influential in shifting the industry’s strategy.
For regular beer drinkers the key decision has been less concern over health, more about the taste. For years the non-alcohol market was held back by poor quality products or a lack of availability. Many have memories of almost undrinkable brands in the 70s and 80s which gave the category a bad name.
Getting the taste right has knock-on social benefits, including the stigma issue felt by non-drinkers who would feel pressured into ordering alcoholic drinks to be part of the crowd. Now they can choose from a range of drinks that are developing a fashionable following in their own right.
Among those who have led a revolution is Heineken which in 2017 launched its 0.0 in Europe. The company reportedly spent 15 years developing the product. Its efforts have paid off, with 0.0 (actually 0.03% alcohol) taking as much as a fifth of the growing US market alone in the early part of this year.
Brewdog has three alcohol-free options; Punk AF, Nanny State, and Raspberry Blitz. The company launched an alcohol-free pub. Edinburgh-based brewer Days has raised £1 million to expand its non-alcoholic products.
The alcohol-free market is also expanding in wines and spirits. Vodka, gin and tequila are now available in low alcohol forms. Tesco is among retailers which have set up alcohol-free sections.
Commenting on Dry January, and its impact on pub takings, Kate Nicholls, the chief executive of the trade body UK Hospitality, called on people who are trying to avoid alcohol to consider choosing something else at the bar or going out for food.
“This year, there are an awful lot more non-alcoholic options available that are really good quality, so there’s no excuse not to go out and support your local hospitality business,” she said.
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