England’s Euro Cup Loss Fuels a Surge in Non-Alcoholic Beer Sales
The European men’s soccer championship may have ended in disappointment for England, but the tournament left a lasting impact on the nation’s economy, particularly within the grocery and hospitality sectors. While fans may have been downcast about England’s loss in the final, they celebrated with gusto, driving a significant uptick in sales of non-alcoholic and low-alcohol beers. The surge in demand, particularly during England’s matches, highlights the growing popularity of these alternatives, reflecting a shift toward healthier and more moderate consumption habits.
Key Takeaways:
- Non-alcoholic and low-alcohol beer sales soared 38% on England match days, showcasing the increasing popularity of these alternatives.
- This trend extends beyond the U.K., with the U.S. also experiencing a surge in non-alcoholic beer sales.
- The market research firm IWSR forecasts a 19% growth in the UK’s non-alcoholic and low-alcohol beer market over the next five years.
- This growth comes amid a projected decline in the overall alcohol beverage market.
- England’s Euro Cup run boosted the hospitality industry, with sales up by 21% year-on-year.
- Sunday’s final against Spain contributed to a 50% increase in pub and bar sales.
The numbers paint a clear picture: the "non-alcoholic" trend is not just a fad. This shift is driven by a growing awareness of the health risks associated with excessive alcohol consumption and a desire for more moderation. Consumers are looking for alternatives that allow them to enjoy social occasions and sporting events without compromising their health or well-being.
Market research firm Kantar reported a 2.2% increase in take-home grocery sales during the four weeks leading up to July 7, with beer sales rising 13% on average during England’s matches. The particularly strong performance of non-alcoholic and low-alcohol beers, with an average increase of 38%, can be attributed to the fact that many matches took place on weeknights. This likely led consumers to choose these alternatives due to their lower alcohol content and compatibility with daily routines.
The trend extends globally. In the U.S., a similar shift is underway, with the value of total beer sales dropping 2.9% in the 12 months leading to mid-May, while non-alcoholic beer sales saw a significant 33.7% uplift, according to hospitality consultancy CGA. This trend is driven by several factors, including increasing health awareness, a desire to reduce calorie intake, and greater interest in incorporating moderation into lifestyles.
This trend is also fueled by the growing availability and quality of non-alcoholic options. Leading breweries, like Heineken and AB Inbev, have recognized the potential in this segment and are actively developing new, innovative products that provide consumers with a wider range of choices.
The boom in non-alcoholic and low-alcohol beer sales provides much-needed relief to the U.K.’s struggling hospitality industry. The sector has been grappling with the aftermath of the Covid-19 pandemic, rampant inflation, and the work-from-home trend, which has led to a decrease in footfall in city centers. The Euro Cup, therefore, provided a timely boost to sales, with group sales rising 40% during matches.
"This has been a massive boost for the industry," stated Kate Nicholls, chief executive of UKHospitality, highlighting the positive impact of the tournament.
The success of non-alcoholic and low-alcohol options in the U.K. and globally demonstrates a significant shift in consumer behavior. People are increasingly prioritizing health and wellness without sacrificing the enjoyment of social gatherings and sporting events. These trends are likely to continue reshaping the beverage industry, leading to increased investment in innovative products and a broader awareness of the benefits of responsible drinking. As more consumers opt for moderation, the future of the non-alcoholic and low-alcohol beverage market appears bright, offering new opportunities for growth and innovation.
