Low-alcohol sales are surging, says Mintel

The UK’s reputation as a nation of big alcohol consumers could be about to change, as Mintel reports booming sales of low-alcohol drinks (LADs) and better quality products.

Low-alcohol drinks have experienced stagnant growth in the UK in recent years.

But according to the market researcher, both value and volume have increased by around 10 per cent in the last two years. Last year the volume sold was 20 million litres, with a retail value of ₤66.3m.

The low-alcohol market does still only make up 0.3 per cent of the total alcoholic beverage market in the UK, but growth rates are said to be higher than for higher alcohol products.

The LADs market is expected to see further growth of 25 per cent in the next five years, to reach a value of ₤66.3m by 2013.

Senior market analyst Michelle Strutton sees several reasons for LADs’ new-found popularity. One of these is their high quality and the experience they can offer.

“Innovation is driving the market with new launches and brand extensions,” she said, “and product quality continues to improve… These drinks offer the taste sensation not met by many sweet soft drinks today.”

In addition, there is considerable focus on health amongst UK consumers, as well as government campaigns to curb binge drinking and drink driving.

Beer on top

According to Mintel, beer is still the most popular drink type in the low-alcohol fold, with a 80 per cent share of the category.

Cider sales have doubled in the last two years, but sales were at “a very low base” to begin with.

“Lager dominates, buoyed by investment in new lower and mid-strength variants, but cider sales are finally moving forward and wine is believed to offer great potential,” said Strutton.