The UK has experienced a significant increase in low-alcohol beer sales, outpacing many other global markets. The rise in sales is partly due to advantageous post-Brexit tax duties and a wave of new product launches.
- Sales of low-alcohol beer in the UK have doubled from 2022 to 2023, reaching almost 1.3 million hectolitres, as reported by the International Wine and Spirits Record (IWSR).
- The UK has climbed to become the eighth-largest market globally for low-strength beer, moving up from the thirteenth position in 2022.
- A new post-Brexit alcohol duty system has been introduced, which taxes drinks with less than 3.5% alcohol by volume at a lower rate.
- Major brewers like Guinness and Heineken have launched new low and alcohol-free options catering to health-conscious and moderate-drinking consumers.
Sales of low-alcohol beers in the UK have seen a dramatic increase, doubling from 650,000 hectolitres in 2022 to nearly 1.3 million hectolitres in 2023 according to data from the International Wine and Spirits Record (IWSR). This growth positions the UK as a major player in the low-alcohol beer market, advancing from the thirteenth to the eighth-largest global market for drinks classified as low-strength beers, defined by having less than 3.5% alcohol by volume.
The surge in sales can be attributed to new post-Brexit regulations that came into force in August 2023. The UK government implemented a reformed alcohol duty system that imposes lower taxes on drinks with less than 3.5% ABV. Beers with an alcohol content between 3.5% and 8.5% are taxed at £21.01 per litre, while those under 3.5% are subjected to a significantly reduced tax rate of £9.27 per litre. Beverages containing less than 1.2% ABV are exempt from taxes entirely, presenting an attractive opportunity for brewers.
Responding to these changes, prominent brewers such as Guinness and Heineken have introduced new and improved low and no-alcohol beer products. These offerings are designed to appeal to a growing demographic of health-conscious consumers and those looking to moderate their alcohol intake. For instance, Guinness 0.0 off-trade sales have reportedly surged by nearly 110% to £33.2 million in the past year, surpassing Heineken to become the UK’s leading alcohol-free beer.
The recent trend towards lower alcohol consumption reflects a broader consumer movement favouring moderation and health awareness. Brewers are capitalising on these preferences by expanding their low and no-alcohol product lines, effectively positioning themselves to meet the evolving market demand.
The UK’s post-Brexit adjustments to alcohol duties have stimulated a notable rise in low-alcohol beer sales, making the UK a leading market for such beverages.
