UK sales of low-alcohol beer increased more than in any other market in 2023 amid higher demands and better supply owing to the post-Brexit overhaul of alcohol duties.
According to data provider IWSR, sales of low-strength beer with less than 3.5 per cent alcohol by volume doubled from 650,000 hectolitres in 2022 to close to 1.3mn hectolitres in 2023 after years of flat or declining performance.
The UK market for low-alcohol beer expanded more than any other in volume terms, growing twice as much as the next-highest country, Venezuela, where sales increased by 325,000 hectolitres last year. Romania and Japan were ranked joint third in the survey of 160 countries.
The UK is now the eighth-largest global market for sales in this category of drink, up from 13th in 2022, IWSR told the Financial Times.
Analysts have pointed out the rise in supply also for the increase in activity and buzz. Post-Brexit changes to the alcohol duty system introduced last August implies products with less than 3.5 per cent ABV are taxed at a lower rate than stronger drinks.
Under the new system, brewers must pay £21.01 a litre of pure alcohol between 3.5 per cent and 8.5 per cent ABV, while beers below this threshold are charged £9.27 a litre. There are no duties on products below 1.2 per cent ABV.
IWSR senior market analyst Patrick Fisher said the UK had the largest-growing low-alcohol beer market largely owing to brand owners reformulating existing brands to take them below the 3.5 per cent ABV threshold.
Demand for low-alcohol or alcohol-free beer has soared in recent years. The world’s largest brewers, such as Guinness and Heineken, have all launched zero-alcohol alternatives of their big brands in response to the growing trend for moderation among health-conscious consumers.
Earlier in July, data from NIQ showed that Guinness 0.0 off-trade sales have risen by nearly 110 per cent, solidifying its position as the UK's top selling alcohol-free beer, surpassing even Heineken 0.0 in the market.
