24 September, 2024

UK: Low-alcohol beer sales surge in 2023

Sales of low-alcohol beer in the UK surged in 2023, showing the highest growth globally, largely due to post-Brexit reforms in alcohol duties. Brewers capitalised on new tax rates, launching or reformulating products under 3.5% ABV to benefit from reduced charges, Proactive Investors reported on September 24.

Sales doubled from 650,000 hectolitres in 2022 to nearly 1.3 million in 2023, according to data firm IWSR cited by the Financial Times.

The UK market's growth was double that of Venezuela, the next-strongest performer, while Romania and Japan ranked joint third. The UK has risen to become the eighth-largest market globally for low-alcohol beer, up from 13th in 2022.

Analysts attribute this increase to duty changes, which impose lower taxes on beverages under 3.5% ABV.

Global brewers, including Guinness and Heineken, have expanded zero-alcohol options in response to growing consumer demand for healthier, low-alcohol alternatives.

IWSR predicts the rapid growth will stabilise in the coming years, with flat sales expected between 2024 and 2028.

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