Low-alcohol beer sales in the UK showed a significant increase post-Brexit, surpassing other global markets.
- Sales doubled from 650,000 hectolitres in 2022 to nearly 1.3 million hectolitres in 2023.
- The UK now ranks as the eighth-largest global market for low-alcohol beer, an improvement from thirteenth.
- Lower tax duties on beverages with less than 3.5% alcohol volume encouraged this growth.
- Major brewers have launched new and revamped products to cater to health-conscious consumers.
Low-alcohol beer sales in the UK have notably increased, outpacing growth seen in other markets, following the UK’s departure from the European Union. This trend has been largely driven by changes in tax regulations, which favour beverages with lower alcohol content, making them financially attractive for both producers and consumers.
According to recent data from the International Wine and Spirits Record (IWSR), sales of low-alcohol beer doubled from 650,000 hectolitres in 2022 to almost 1.3 million hectolitres in 2023. This remarkable growth has positioned the UK as the eighth-largest market globally for low-strength beer, ascending from the thirteenth position the previous year.
The UK government’s post-Brexit revisions to the alcohol duty system, implemented in August 2023, are a significant factor in this market expansion. Drinks with less than 3.5% alcohol by volume (ABV) are now subject to reduced tax rates, which has incentivised the production and consumption of these beverages.
Prominent brewing companies have responded by releasing innovative products tailored to the growing segment of health-conscious consumers. Noteworthy launches include those from Guinness and Heineken, companies that have introduced new and improved versions of their no-alcohol and low-alcohol beer offerings.
In July, statistics from NIQ revealed a 110% rise in sales for Guinness 0.0 in the off-trade sector, amounting to £33.2 million and overtaking Heineken to become the United Kingdom’s leading alcohol-free beer brand.
The UK’s favourable tax conditions and innovative product launches have significantly boosted its low-alcohol beer market.
