Cider sees biggest ever value growth in off-trade in 2020

As the pandemic induced closures and restrictions in the on trade, 2020 has turned out to be the biggest year on record for the off-trade cider category, a new report from Westons Cider has revealed.

The sixth edition of the annual Westons Cider Report shows record growth for cider in grocery retail – up 21.2 per cent YOY – taking overall value to £1.3 billion.

The off trade accounted for 63 per cent of cider value and 83 per cent of cider volume in 2020 - up 28 per cent and 19 per cent respectively - as many drinkers temporarily switched to the channel.

According to the report, almost half of UK households (47.7%) now buy in to the category, which attracted almost a million more shoppers in 2020. Shoppers also bought cider in greater volumes – averaging an additional 30 litres per household, up 9.4 per cent.

At its highest, household penetration of off trade cider reached 48.6 per cent compared to 45.7 per cent in the previous year.

“The past year has been undeniably challenging for retailers and suppliers alike. The initial surge in demand in the off-trade meant that production of priority, bestselling SKUs had to be ramped up significantly. However, the outlook for the cider category is no doubt a positive one, as it has yet again shown itself to be buoyant and in high demand,” Tim Williams, insight and innovation manager at Westons Cider, said.

The report notes that premiumisation continues to be the driving force for growth across the off-trade, with the average price per litre having risen to £2.31. In the convenience channel, this is already averaging £2.40, ahead of the total market.

Crafted cider was the fastest-growing segment last year and the biggest cider drinking occasion was a quiet night in – up from 19 per cent of serves a year ago to 21.6 per cent of serves in 2020.

In convenience, the crafted cider subcategory reached triple digit growth, with independents seeing volume growth of 153.4 per cent YOY.

Overall, convenience cider sales have boomed by 19 per cent, ahead of the 17.9 per cent growth seen in the total grocery market.

“The challenge now is for cider brands to keep engaging with these new consumers to help the off-trade retain some of the share it picked up in 2020, even as pubs, bars and restaurants reopen. And as shopper habits continue to evolve in 2021, we’re confident that the clear appetite for cider demonstrated through last year’s significant off-trade growth spells good news for the category overall,” Williams said.

The report has also shown that the growth of crafted cider continues to significantly outpace the overall category (up 48.7% versus 21.2%).

This can be largely attributed to the role this subcategory plays in driving premiumisation, as the price per litre of crafted cider is significantly higher than the market average (£3.23/L versus £2.31/L).

“The figures suggest that stocking premium, branded lines with provenance and heritage will unlock a significant sales opportunity for retailers. However, there’s still a huge untapped opportunity to drive premiumisation and value growth across the wider category,” Sally McKinnon, head of marketing at Westons Cider, said.

“Understanding cider drinkers’ motivations and the new opportunities beyond Covid will be integral to this, and innovations within other fast-growing subcategories could help to spread value growth more evenly across the category.”

Westons’ latest report also reveals:

• The average household now buys cider once a month (12.0 times per annum), up +6.2% year-on-year
• Average volume per household is 37.1 litres, up +9.4%
• Apple cider continues to dominate, accounting for 60% of total off-trade sales – with fruit cider accounting for 35% (up 22.3% and 22.9% respectively)
• Crafted ciders are driving the greatest growth, up 48.7%.Within this, the top ten crafted brands represent 82% of crafted category value– led by Henry Westons, up 77.3% YOY.
• Canned offerings continue to prove popular among shoppers who enjoy this lightweight and recyclable format, which now accounts for 59% of all sales – up 31.7% from the previous year
• Glass is following suit, accounting for just under a third of all sales (29%), whilst plastic bottles (10%) continue to decline as a result of consumers moving away from value offerings, alongside price rises following the introduction of Minimum Unit Pricing in Scotland
• Cloudy and Rosé ciders now present a huge sales opportunity, with respective growth rates of 104.1% and 481.3% – far outpacing the overall category
• Low & No Alcohol Cider volume has grown by +32.6% in the off-trade, with increased penetration and interest driving this growth. These products attract a more affluent shopper, and 3.2% of cider buyers ONLY purchase no/low alcohol cider – demonstrating the incremental value these products are adding to the overall category
• Larger pack formats are on the rise –ten pack value increased 40% YOY and packs larger than this saw a 31.6% increase. Despite, this single bottles still make up the majority of cider market value, with a 40% share
• Quiet Night In, Winding Down and Enjoying with Food are all primary purchasing motivations for cider, signalling clear stocking time cues for retailers, as well as an opportunity to offer cider within cross-category promotions, such as dining in deals