UK: On-trade beer and cider market estimated at GBP13.5 bln

The size of the total UK on-trade beer and cider market has grown to £13.5bn, a new report from Heineken has found, The Morning Advertiser reported on September 10.

It means around 17m hectolitres or nearly 3bn pints were poured in pubs last year, according to Heineken’s Beer Report 2024.

Lager’s share of the on-trade beer market by value increased 70% year-on-year, with a 22% uptake in the value of Spanish lager’s and a 40% rise in sales by value of no and low alcohol beers.

World lager gained the biggest share of the overall beer market with 28%, followed by Premium and Classic lager both at 20%, while craft hit 8%.

Classic Bitter, Ale and Stout took a 13% total share of the segment while Premium Bitter, Ale and Stout accounted for 10% of the market.

Brands that had contributed the most growth to the beer market included Guinness, Birra Moretti and Madri.

The category also outperformed other segments within the drinks market, including spirits and wine, and remained the largest category in the UK on-trade in both volume and value.

Cider sales posted a flat performance during this period, while other segments were in year-on-year decline, including RTD options (down 10% in value) as well as white and dark spirits, which were down 6.3% and 3.4% respectively.

Wet-led pubs also experienced the fewest closures within the sector, Heineken UK’s report added.

However, the reported warned overall outlet closures remain high, with 14% fewer venues in the UK than pre-Covid.

Over the past 12 months, nightclubs, casual dining outlets, and independent restaurants have been particularly badly hit, with numbers down 13%, 7% and 7% respectively.

In addition, the data showed beer drinkers “consistently engage” with the category in pubs, buying on average 1.5 times per week and drinking 3.1 servings per occasion.

The most lucrative time for pubs last year was the Early May Bank Holiday (28 – 30 May), which saw an uptick of £10,964 for the average pub.

Sporting events also helped boost trade in 2023, with the FA Cup Final in June having seen the average pub gain £8,681 in beer sales. In addition, 90% of customers said they stay out longer if a game was on.

Healthy habits have also influenced customers choices, with the majority of UK adults (77%) moderating how much they drink. Moreover, one in three pub visits now do not include alcohol.

Though the cost-of-living crisis and perceived high costs within the segment have had an impact on the no and low category.

Heineken UK on-trade sales director Will Rice said: “Despite what headlines may say, there’s reason to be optimistic.

“There are several trends and behavioural shifts that we predict will be positive for the industry and for beer – a category that remains, after all, the UK’s favourite alcoholic drink by some distance.”

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