The beer industry is at a crossroads, balancing tradition with innovation. Consumers are changing how they drink, and brands need to keep up. From sustainability to convenience, it’s all about understanding what modern drinkers want. Major beer brands are in a prime position to shape a more refined and responsible beer culture worldwide.
But let’s talk about what’s really happening on the ground. In 2024, a staggering 412 pubs shut their doors—the highest number since 2021—leaving the UK with under 40,000 pubs. To put this into perspective, the UK had around 60,800 pubs in 2000, meaning the country has lost over a third of its pubs in just over two decades. Meanwhile, people are shifting their beer habits to home. By July 2023, the UK’s off-trade beer market was valued at over £2.9 billion, though it dipped slightly to £2.8 billion in 2024. But here’s the kicker: while traditional beer sales wavered, low- and no-alcohol options soared, with sales projected to hit a record 140 million pints in 2024.
We know people are drinking more at home, but where are they buying their beer? Did a last minute dash to a local convenience store to pick up some 0% beer for guests introduce them to their new favourite brand? Don’t underestimate the role local retailers play in impulse purchases.
Ready-to-drink (RTD) beverages and low/no alcohol options aren’t just a passing trend—they’re redefining the industry. Health-conscious and busy consumers are steering the market, but there’s a gap, especially in convenience stores, where chilled options and variety often fall short.
It’s a missed opportunity. According to Pinda Cheema from Malcolm Stores in Coventry, "Stella, Peroni, Cobra, and Asahi Dry are killing it in the low/no alcohol space. The market dipped in 2023, but 2024 has been a game-changer."
Retailers like Bobby Singh agree that brands aren’t making the most of their presence in convenience stores. "I make sure no/low alcohol beers are front and centre in my chillers, with bold signage to grab attention. But more brands need to engage with retailers properly."
With recent UK duty changes (effective February 1st), expect even more innovation in mid-strength alcohol categories. Retailers are seeing shifts in drinking habits, with 30-50-year-olds leading the charge for healthier choices. As Pinda Cheema puts it, "People want lighter, low-carb options like Asahi Dry 0.0, especially when they’re focused on fitness. If brands support retailers properly, sales will naturally rise."
Right now, premium and higher-end brands dominate the low/no alcohol sector, making up two-thirds of the market. And with trends like Sober October and Dry January pushing moderation into the mainstream, sales in this category have surged 20% year-on-year.
Avtar Sidhu, St John Budgen’s director, believes that the pandemic played a major role in this shift. "Consumers want alternatives, and brands like Guinness are setting the bar high with their no/low alcohol selections. But many retailers still struggle with effective merchandising and promotion. Having the right product in the right spot makes all the difference."
Tesco saw this firsthand. In the four weeks leading up to Christmas, their low/no alcohol sales jumped by over 15%, with Corona 0.0 leading the pack at a staggering 250% growth, followed by Guinness 0.0 at 100%.
Sustainability isn’t just a buzzword anymore—it’s a necessity. A massive 73% of consumers globally prefer sustainable packaging, and over 60% of UK beverage consumers consider environmental impact when choosing a brand.
Heineken is leading the charge with its Brew a Better World initiative, aiming for carbon-neutral production by 2030 and full value chain neutrality by 2040. Meanwhile, Asahi is on track to power all its European breweries with 100% renewable electricity by the end of 2025 and reach carbon neutrality by 2030.
Breweries are also exploring circular brewing methods, reducing water usage, and cutting carbon emissions through smarter supply chain practices. The message is clear: sustainability isn’t just good for the planet—it’s a competitive advantage.
The beer industry is evolving, and the future belongs to brands that embrace change. Whether it’s sustainability, convenience, cultural relevance, or digital engagement, premium beer companies have the tools to lead the way. At Mercieca, we work closely with a strong network of retailers; helping brands maximize their visibility and impact in the growing no/low alcohol space.
Beer is no longer just about what’s in the bottle. It’s about the values, experiences, and stories that come with it. And if the trends are anything to go by, the future looks bright—especially if you’re raising a no/low pint in a greener, more mindful world. Cheers to that!
If you’d like to explore how your brand can tap into these emerging trends contact us at [email protected] and [email protected].
