Health and Well-being Driving Surge in Low and No-Alcohol Drinks

The relationship between social gatherings and alcohol consumption has been a constant throughout human history. However, in recent years, a significant shift in attitudes toward alcohol consumption has emerged, marking what is now known as the "generation of moderation." The 2023 KAM Low and No Alcohol report highlights this transformation, showcasing a growing social acceptance of reduced alcohol intake and a considerable rise in the availability and consumption of "NoLo" (low and no-alcohol) beverages in the United Kingdom.

The report emphasizes a notable decline in weekly alcohol consumption among British adults. In 2021, 90% of adults in the UK consumed alcohol at least once a week, a figure that fell to 77% in 2023. This trend is evident across all age groups, with the most significant decrease seen among young adults aged 18 to 24. The driving force behind this change is not the elimination of alcohol but a reduction in its consumption. Three out of four adults in the UK report moderating their alcohol intake to some extent.

Health and well-being are the primary reasons behind this moderation. Improving physical and mental health, along with saving money, are the main motivators. The desire for better sleep and a more balanced personal life also play significant roles, according to the report. These motivations reflect a broader societal shift toward healthier and more balanced lifestyles.

While initiatives like "Dry January" (a popular social media challenge encouraging people to abstain from alcohol during January) have popularized the idea of reducing alcohol consumption, the report reveals that many adults are cutting back on their alcohol intake throughout the year. Interestingly, as many people actively moderate their consumption during the summer and festive seasons as they do during "Dry January." This indicates that moderation is becoming an ingrained habit, forming an integral part of daily life rather than being confined to specific months or events.

Moderation, as defined by the average adult in the UK, involves several strategies. The most common methods include opting for smaller measures of alcohol, drinking less on certain occasions, or drinking the same amount but reducing the number of drinking days per week. Additionally, there is a growing trend to swap alcoholic beverages for low or no-alcohol versions and to choose drinks with lower alcohol content.

For the alcoholic beverage sector, these trends, although signaling a significant shift in their business model, offer an opportunity to understand demand and adapt quickly to consumers. Thus, the market for low and no-alcohol beverages is rapidly growing. Approximately 9.7 million people tried low and no-alcohol beer for the first time in the past 12 months, illustrating the growth of this category. New consumers of these beverages are more likely to remain in the category long-term, indicating a shift toward sustained moderation.

The acceptance of low and no-alcohol beverages is now widespread. More than a third of adults in the UK report drinking more low and no-alcohol beverages compared to 12 months ago. This change is particularly pronounced among young adults, with 30% of those aged 18 to 24 and 27% of those aged 35 to 44 increasing their consumption of these beverages.

The rise of the generation of moderation presents significant opportunities for the hospitality industry. More than a third of visits to pubs and restaurants are now alcohol-free, and 1 in 4 adults in the UK choose water as their preferred drink in restaurants when not consuming alcohol. This represents a lost revenue opportunity of £800 million annually for establishments. Enhancing the variety, visibility, and staff education on low and no-alcohol options can improve the customer experience and boost sales.

To capitalize on this trend, the report suggests that establishments must ensure they offer a range of NoLo options. Visibility is crucial; consumers need to be able to easily find information about these beverages, both online and in the establishment. Staff training is also essential, as well-informed staff can guide customers in making informed decisions and encourage the trial of non-alcoholic alternatives.

The cultural shift towards alcohol moderation is undeniable. As more people prioritize their health and well-being, the demand for quality low and no-alcohol options will continue to grow. For the hospitality industry, embracing this change and offering inclusive and enjoyable experiences for all customers is key to staying relevant and profitable in this evolving landscape. The 2023 KAM Low and No Alcohol report not only highlights current trends but also underscores the immense potential for growth and innovation in this expanding market.

Opportunities in Moderation: How Wineries Can Benefit from This New Landscape

The shift towards alcohol moderation also has significant implications for wineries. Far from presenting a problem, these circumstances, if well-managed, can represent an opportunity. Where there was once a single business line focused on traditional wine, there are now two: traditional wines and alternative low-alcohol or alcohol-free wine options targeting these new consumers.

To maintain a positive profitability balance, the potential loss of revenue from traditional wine customers can be offset by the increase in customers interested in healthier options. Additionally, improving the quality of traditional wines can allow customers who drink less to be willing to pay more for a higher-quality product. Thus, wineries have the opportunity to diversify their offerings and capture a growing market, remaining competitive and profitable in this new landscape.

By embracing this trend, wineries can appeal to a broader audience and address the needs of the generation of moderation. This strategic shift not only supports the evolving preferences of consumers but also fosters innovation and sustainability within the wine industry. The future looks bright for those willing to adapt and innovate, ensuring that they remain relevant and successful in the face of changing consumer behaviors.