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Attitudes towards Low- and Non-alcoholic Drink - UK - April 2015

Published By :

Mintel

Published Date : Apr 2015

Category :

Alcoholic Beverages

No. of Pages : 68 Pages


Cost is also a barrier hampering over-45s’ interest in the market and introductory offers or money-back guarantees could encourage trial to try to address the doubts about the quality of these drinks.
Table of Content

Introduction

Definitions
Abbreviations

Executive Summary

The market
Market factors
The consumer
Low/non-alcoholic drinks achieve only limited penetration
Figure 1: Usage of types of alcoholic drinks in the past six months, February 2015
Soft drinks dominate when standard-strength drinks are not desired
Figure 2: Preferred alternatives to standard-strength alcoholic drinks on different occasions, February 2015
Many consumers have realistic expectations of calorie contents of their drinks
Lower-alcohol drinks suffer from some unfavourable associations
Figure 3: Qualities associated with low/non-alcoholic drinks, February 2015
Lower-alcohol drinks must compete harder on cost and taste
Figure 4: Attitudes towards low/non-alcoholic drinks, February 2015
What we think

Issues and Insights

Managing expectations of saving money on low/non-alcoholic drinks
The facts
The implications
Winning over older drinkers
The facts
The implications
Competing more efficiently with soft drinks
The facts
The implications
Following in German footsteps
The facts
The implications

Trend Application

Help Me Help Myself
Extend My Brand
Generation Next

Market Drivers

Key points
UK consumers continue to cut back on alcohol
Figure 5: Trends in UK per capita consumption of 100% alcohol, 2006-14
Reducing the Strength scheme
Alcoholic drink prices continue to rise
Figure 6: RPI indexed annual change for alcoholic drink prices versus all items except housing, 2000-14
Figure 7: How consumers describe their financial situation, February 2015
Changes to taxes on alcoholic drinks
Figure 8: Excise duty rates and tax on a pint of beer at different strengths, as per 2015 Budget
Figure 9: Excise duty rates on a pint of cider at different strengths, as per 2015 Budget
Figure 10: Excise duty rates on 750ml bottles of wines at different strengths, as per 2015 Budget
An ageing population could pose a threat to lower/non-alcoholic drinks

Strengths and Weaknesses

Strengths
Weaknesses

Who’s Innovating?

Beer dominates lower-alcohol NPD activity
Wine’s lack of lower-alcohol NPD appears to be impacting on sales
International inspiration

Market Performance

Key points
Lower-alcohol wines gain marginal traction
Figure 11: Off-trade value and volume sales of still & sparkling wines under 5.6% ABV and beers under 2.9% ABV, 2012-14
Lower-alcohol beer showing encouraging signs of growth

The Consumer – Usage of Alcoholic Drinks

Key points
Low/non-alcoholic drinks achieve only limited penetration
Figure 12: Usage of types of alcoholic drinks in the past six months, February 2015
Figure 13: Usage of low/non-alcoholic drinks as a proportion of total category users, February 2015
Figure 14: Repertoire of usage of types of low/non-alcoholic drinks in the past six months, February 2015
Still wine fares poorly in the lower-alcohol segment
Three in 10 users of lower-alcohol drinks are increasing their usage
Figure 15: Usage of low/non-alcoholic drinks, February 2015

The Consumer – Occasions for Consumption

Key points
Standard-strength alcoholic drinks are popular in and out of home
Figure 16: Occasions for drinking standard-strength alcoholic drinks, February 2015
Soft drinks dominate when standard-strength drinks are not available
Figure 17: Preferred alternatives to standard-strength alcoholic drinks on different occasions, February 2015
Figure 18: Combined preference for low/non-alcoholic drinks as alternatives to standard-strength alcoholic drinks on different occasions, February 2015
Low-alcohol drinks could thrive in the on-trade
Tapping into more niche occasions

The Consumer – Perceptions of Calories in Alcoholic Drinks

Key points
Consumers have realistic expectations of calorie contents of beer
Figure 19: Perceptions of the calorie content of a pint of beer (568ml), by strength, February 2015
Many drinkers overestimate wine’s calorie content
Figure 20: Perceptions of the calorie content of a large glass of wine (250ml), by strength, February 2015

The Consumer – Perceptions of Low/non-alcoholic Drinks

Key points
Lower-alcohol drinks suffer from some unfavourable associations
Figure 21: Perceptions of low/non-alcoholic drinks, February 2015
Figure 22: Perceptions of low/non-alcoholic drinks, by gender, February 2015
Millennials emerge as the advocates

The Consumer – Attitudes towards Low/non-alcoholic Drinks

Key points
Summary of attitudes towards low/non-alcoholic drinks
Figure 23: Attitudes towards low/non-alcoholic drinks, February 2015
Reduced alcohol drinks struggle to compete against soft drinks
Figure 24: Attitudes towards the health credentials of low/non-alcoholic drinks, February 2015
Winning over the taste sceptics
Figure 25: Attitudes towards the taste of low/non-alcoholic drinks, February 2015
Figure 26: Attitudes towards low/non-alcoholic drinks with significant differences, by gender, February 2015
Cost is a barrier to market growth
Figure 27: Prices of selected alcoholic drinks, 10 March 2015 (excludes promotional prices)
Figure 28: Attitudes towards the image and cost of low/non-alcoholic drinks, February 2015
Improved visibility could boost the market’s fortunes
Figure 29: Attitudes towards the availability of low/non-alcoholic drinks, February 2015

The Consumer – Target Groups

Key points
Four target groups
Figure 30: Target groups, February 2015
Sceptics (29%)
Disengaged (29%)
Health-aware (23%)
Lower-alcohol Fans (19%)

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