UK Drinks Industry Breakdown: Everything You Need to Know
We like the drink in the UK – there’s no two ways about it. Pubs, bars, nightclubs, and restaurants are in our DNA, whether you partake in alcohol or not. And that’s not to mention the bustling off-trade drinks market as well. But what sort of state is the Drinks Industry actually in?
We’ve put together this blog with some core UK drinking statistics from a plethora of sources, offering an abridged but comprehensive view of the on and off-trade drinks business in our country. Professionals with a better understanding of consumer behaviour, market trends, and industry data will have an advantage in how they approach entrepreneurial pursuits.
Overarching Market Overview
The good news starts with the fact that the UK’s alcoholic drinks market was valued at an amazing £50 billion in 2022, showing growth of around 6% from the prior year and no signs of slowing down. The growth in the market is expected to bring the industry’s value to a massive £60.9 billion by 2026. If you’re considering cracking into the industry, there seems to be no wrong time – us Britons aren’t going to stop spending money on booze any time soon!
How Do People Drink?
This answer to the question of “how do people drink?” might seem obvious – with their mouths! However, while it’s clear that the alcohol industry is doing well overall, drinks entrepreneurs need to comprehensively understand consumer behaviour to effectively navigate the choppy waters of business.
How Many People Drink in the UK?
According to research by Lunzer Wine, 71.2% of UK adults consume alcohol at least weekly, while only 13.5% of UK drinkers choose to do so on a basis less than weekly. This means over two thirds of the population are indulging in a glass (or four) of something strong every seven days!
The teetotal community in the UK accounts for 12.5% of the population, but the number seems to be on the rise with 37% of adults considering giving up the booze in the summer of 2023. Women lean teetotal more than men, with 14.4% of our nation’s ladies being sober compared to 10.5% of men.
What Influences Purchasing Behaviour in the UK?
- Environmental Concerns: Around 29% of UK drinkers state that a brand’s environmental impact will influence their purchasing decisions, with the number rising to around 54% in 18-24 – the sustainability movement makes it to booze!
- Visual Appeal: While taste, alcoholic content, and price are all relevant to purchasing habits, it’s clear that branding has a lot of sway in the drinks industry, with 31% of consumers saying they’ve been encouraged to buy because of a visual ‘wow factor’.
- Finances: The biggest influence on purchasing habits for alcohol in the UK is financial, with 64% of drinkers stating they would reduce or stop purchasing alcohol if they needed to save some money.
Who Drinks What?
When considering a marketing strategy or branding plan for the drinks industry, it’s vital to understand demographic differences across the country. This will inform your approach to the aforementioned ‘wow factor’, the types of alcohol you choose to deal in, how you stock your bar, and so on.
The Most Popular Alcoholic Drinks
In the UK, the most popular alcoholic drinks are headed up by White Wine, the choice for 21.8% of all drinkers. Coming in hot on its tail is Lager, responsible for 21.75% of the market and not far behind is Red Wine, with a 20.5% market share.
While wine and beer seem to dominate the market, it’s worth noting that spirits are also a popular booze option in the UK, with Gin, Vodka, and Whiskey ruling this space. Beyond these choices, Rosé, Sparkling Wine, Rum, Craft Beers, and Bitter are all popular options as well.
Gender Differences
In line with teetotalism stats, men drink more than women generally, with 75.6% of men drinking weekly compared to 67.6% of women. In terms of what they like to drink, the ladies tend to go for wine while fellas lean towards lager and whiskey in general.
Age Preferences
People often talk about how tastebuds mature with age, but it depends on your definition when it comes to booze! In terms of younger adults aged 18-24, Vodka is the weapon of choice. For those 25-34, Gin and Tonic appears to be the most popular option. Once Brits pass the 35 milestone, Lager reigns supreme, but those 55 and older choose White Wine above everything else!
By properly understanding the demographic dynamics of the UK alcohol market, you can make more informed choices about how you’ll interact with the industry.
Pubs vs Bars: Where Do People Drink?
When it comes to the on-trade drinks industry, many Friday night debates have been had over where to go for that end-of-the-week drink – pub or bar? Getting the lay of the land in terms of these venues is vital, whether you’re planning on marketing drinks to them, offering technology, or trying to open an establishment of your own.
Pubs Are Declining, but Still Everywhere
In the UK, pubs are on the downturn, with hundreds of locations shutting every year. However, there were still around 46,800 pubs in the UK in 2020. Even though the industry seems to be declining, pubs still attract 15 million people every week.
Bars Are on the Rise
It’s worth noting that the definition of “bar” is a little vague but in general, the data indicates that it’s a growing sect of the drinks industry. Over five years between 2014 to 2019, the number of on-trade outlets serving mixed traditional cocktails has risen by 75% to 42,000.
So, while pubs are still the nation’s favourite for a stiff drink, bars and cocktail venues are growing in popularity and prevalence. Pre-mixed cocktails, shakers, strainers, and other bar-specific goods could follow in terms of growing demand.
The Off-Market & Ready-to-Drink (RTD) Market in the Drinks Industry
When it comes to drinks enjoyed both out and about and at home, the ready-to-drink market has been consistently rising for years. The value of off-trade at-home drinks in the UK reached a record £482.6 million, growing significantly during the COVID-19 pandemic. But while wine, beer (the most popular off-trade choice), and spirits have been fixtures in homes for years, a dark horse has emerged in the RTD space – the ready-to-drink cocktail.
RTD Cocktails
Premixed cocktails have become something of a phenomenon in the UK drinks industry of late, with cans of G&T, Pornstar Martini, and Wine Spritzers becoming a go-to for many people’s pre-drinks and a quiet evening. The UK market for these drinks reached its peak at USD 58.1 million in 2023.
Premix vs Hard Seltzers
Amongst the bubbling sea of premixed cocktail cans, another contender has stepped into the fray – the hard seltzer. Spearheaded by the US success of brands like White Claw and Topo Chico, these spiked fizzy waters have become something of a social media sensation, steadily gaining popularity in the UK. According to Nielsen data, sales of hard seltzers increased by a monumental 246% in 2021.
Own Label Wines
Co-op has reported that sales of their own-label wines have increased by 36% in value terms, showing the rise in demand for affordable quality. This aligns with an overarching increase in quality for store-brand and private label food and drink products, much to the joy of consumers in the midst of the cost-of-living crisis.
While pubs and bars are starting to get busier again in the wind-down of the pandemic, there are some very exciting things happening within the RTD drinks industry.
The Rise of Non-Alcoholic Beverages
The drinks industry isn’t just for those that imbibe, with the market for non-alcoholic beverages growing steadily in the last few years. In the same 2021, non-alcoholic beer sales increased by 19% and non-alcoholic spirit sales more than doubled with a 107% increase. The increase in sales was inspired by a multitude of factors, with a major one being perceived improvements in quality. It was shown in a BBC study that offering low-to-no options actually reduced the sales of typical draught beers, without negatively impacting the financial situation of the pubs serving them.
It’s also worth noting that young people might be becoming a little better behaved! In 2021, 35% of men and 42% of women between the ages of 16-24 in the UK were choosing to forgo alcohol altogether.
Where is the Drinks Industry Headed?
So there’s a lot to chew on (or knock back) when looking at the state of the UK drinks industry.
- Despite consistent closures, pub culture seems to be getting stronger again in the time after the pandemic.
- Premixes, hard seltzers, and not-so hard alternatives are all steadily on the rise, set to take more pronounced spots in the pantheon of British on and off-trade drinks options.
- Despite increases in sober youngsters, the UK alcohol market shows no signs of slowing down (but you probably would’ve guessed that!
But all this information does beg the question – what’s next for the UK alcohol (and low-to-no) market? Well, there’s a place where you can find out for yourself! Trade Drinks Expo is Europe’s Leading Event for On & Off-Trade Drinks – a trade show and industry conference dedicated to elevating the business from every angle.
With the constant turbulence in the UK’s drinks sector, Trade Drinks Expo aims to encapsulate this and bring your business to the forefront industry exclusive insights . Showcasing hundreds of cutting-edge companies, guest seminars from industry experts, exciting awards, and plenty of room for networking, there’s no better place to update your professional awareness in trade drinks. Best of all, it’s also co-located with 6 other events under the umbrella of The Hospitality B2B Portfolio
