Rise of No and Low-Alcohol Drinks

blog backdrop

Rise of No and Low Alcohol Drinks

The UK’s drinks industry is experiencing significant transformations as of January 2025, driven by evolving consumer preferences and market dynamics. This blog delves into the prominent trends shaping the sector, supported by recent data and expert insights.

1. The Surge of No- and Low-Alcohol Drinks

A notable shift towards reduced alcohol consumption is evident, particularly among younger demographics. According to El País, approximately 25% of young people in the UK now choose to abstain from alcohol. This has led to the emergence of alcohol-free venues and a surge in non-alcoholic product offerings.

This movement reflects a broader societal shift towards health consciousness and a reevaluation of traditional social norms surrounding alcohol consumption. The entry of celebrities into this market underscores its growth potential. For instance, Tom Holland, the actor known for “Spider-Man,” has launched a no-alcohol beer brand called Bero, aiming to offer non-drinkers a beverage that allows them to blend in during social settings.

2. Functional and Health-Focused Drinks

Consumers are increasingly seeking beverages that offer health benefits. Functional drinks infused with ingredients like CBD, collagen, and adaptogens are gaining popularity. According to Statista, the UK’s non-alcoholic beverages market is projected to grow by 3.65% annually between 2025 and 2029, resulting in a market volume of $39.97 billion by 2029.

This indicates a sustained consumer interest in health-centric products. Brands focusing on functional benefits are well-positioned for growth, particularly as wellness becomes a defining consumer priority.

3. Premiumization and Craftsmanship

There’s a growing demand for premium and craft beverages, with consumers willing to invest in higher-quality products. This trend is evident in the rising popularity of premium spirits and craft beers, as well as a renewed interest in sophisticated cocktails featuring spirits like cognac. According to insights from Club Oenologique, these offerings cater to a demographic seeking both luxury and unique experiences.

The Ready-to-Drink (RTD) segment is also experiencing sustained growth, driven by younger consumers seeking convenience. In my opinion, this reflects a desire for accessible yet premium options, signalling opportunities for brands that deliver both quality and convenience.

4. Sustainability and Natural Ingredients

Environmental consciousness is influencing purchasing decisions. According to Food Manufacture, consumers prefer drinks made with natural ingredients and sustainable practices. This includes a focus on “real food” ingredients and transparency in sourcing.

Additionally, sustainability is driving innovation in packaging. As highlighted by Club Oenologique, wines sold in PET bottles and other alternative packaging are gaining traction for their reduced environmental impact. This shift suggests that brands prioritizing sustainability will resonate with environmentally conscious consumers.

5. Emergence of ‘Brothtails’

A novel trend in mixology involves incorporating savoury flavours into cocktails, leading to the creation of “brothtails.” These beverages blend umami-rich broths with spirits, offering a unique culinary experience. As noted by Club Oenologique, this approach pushes the boundaries of gastronomic mixology.

This innovative trend highlights how the industry is exploring uncharted territory, blending culinary and beverage arts to cater to adventurous palates.

The UK’s drinks industry is embracing a dynamic shift towards health-conscious, premium, and sustainable offerings, with innovation at the forefront of new product development. Staying attuned to these trends is essential for industry stakeholders aiming to meet evolving consumer demands.

Check out our No- and Low-Alcohol Drinks on our Online Ordering platform

Tags:

No responses yet

    Leave a Reply

    Your email address will not be published. Required fields are marked *