The UK’s low-alcohol beer market is experiencing a significant surge post-Brexit.
- Sales of low-alcohol beer have nearly doubled in the UK, from 650,000 hectolitres in 2022 to 1.3 million in 2023.
- The UK has ascended to the eighth-largest global market for low-strength beer, an increase from the 13th position in 2022.
- A new tax regime introduced in August 2023 favours lighter brews, levying lower duties on beers under 3.5% ABV.
- Leading brands are launching novel products to meet rising health-conscious consumer demands.
In a remarkable development, the UK’s low-alcohol beer market has gained substantial momentum in the post-Brexit era. Recent data from the International Wine and Spirits Record (IWSR) highlights an impressive growth trajectory, with sales doubling to 1.3 million hectolitres in 2023 from the previous year. This trend marks a significant shift in consumer preferences.
The UK has improved its standing on the global stage, now ranking as the eighth-largest market for low-strength beers, advancing from 13th place in just a year. This improvement underscores the impact of policy changes and evolving market dynamics.
A crucial factor influencing this growth is the newly implemented tax system for alcoholic beverages, effective from August 2023. Under this regime, beverages with less than 3.5% alcohol by volume (ABV) are subjected to considerably lower tax rates, which has incentivised both consumers and producers to shift focus towards lighter options.
Prominent brewers, including well-known names like Guinness and Heineken, have responded by introducing and enhancing low or no-alcohol products, aligning with the increasing trend of moderation among consumers. These launches aim to cater to a growing demand for products that support a balanced lifestyle.
As a result, notable products like Guinness 0.0 have recorded substantial sales increases, rising by nearly 110% to a value of £33.2 million within a year. Such figures highlight the commercial success and consumer acceptance of these innovative beverages.
The UK’s adaptation to post-Brexit conditions has fostered a thriving market for low-alcohol beers, driven by favourable taxation and innovative product offerings.
