In recent years, the UK has witnessed a significant rise in the popularity of no and low-alcohol drinks. Once seen as a trend for events like Dry January or Sober October, these beverages have now become a staple for health-conscious consumers. The demand for these options has moved beyond occasional interest and is now firmly rooted in everyday choices across hotels, clubs, bars, and restaurants.
Market Performance
According to IWSR data, while the overall UK beverage alcohol market is expected to decline by 1% CAGR over the next five years, the no and low-alcohol segment is thriving. Between 2022 and 2023, this sector saw a remarkable 47% growth in volume, with a forecast
CAGR of 19% from 2023 to 2028. This growth is projected to add an incremental value of £0.8 billion by 2028.
Consumer Trend for Moderation
About half of the UK adult population has already tried a no or low-alcohol product, signalling a significant shift towards healthier lifestyle choices. These drinks provide an alternative to traditional alcoholic beverages, allowing consumers to enjoy social events without the effects of full-strength alcohol. Currently, the no and low-alcohol category holds nearly 3% of the UK’s total beverage alcohol market.
Excise Duty Changes and Labelling Guidelines
Brands are strategically lowering their alcohol content (ABV) to benefit from the UK's new excise duty regime. Additionally, the government is considering raising the threshold for drinks to be labelled as ‘alcohol-free’ to 0.5% ABV, up from the current 0.05%. This potential change would make no and low-alcohol products more accessible to the hospitality
sector.
Business Opportunities
For hotels, bars, and restaurants, embracing this trend is not just a choice but a necessity. Expanding no and low-alcohol offerings can attract health-conscious patrons and keep establishments relevant in an evolving market. This is not a passing fad but a fundamental shift in consumer behaviour that savvy businesses can capitalise on, provided they do so cost-effectively and without compromise.
The Cocktail Supreme Advantage
The Cocktail Supreme automated cocktail machine, coupled with our premium purees and syrups, aligns perfectly with current trends. We offer cost-effective, flavourful options without sacrificing quality or consistency. With up to 30 lines available, our machine provides a wide range of beverage choices, reduces waste, and allows for recipe customisation to meet your clientele’s specific preferences. Customers are willing to pay more for quality mocktails and alcohol alternatives, but you must meet their needs for variety, taste, and consistency. For businesses in the beverage industry, broadening your range to include no-alcohol and low-alcohol options presents a substantial financial opportunity.