Expert Insight

Consumers are prioritising value over quality amid the current economic headwinds facing the nation, according to insights service Lumina Intelligence. This increase in value-led consumers is mainly driven by 45 to 54-year-olds.

Furthermore, on pricing, drinkers opt for fewer beer occasions year on year, however, they spent more when they did go out for a pint.

Lumina stats show while in the three months to 14 May 2023, occasions fell from 65% to 63%, spend increased by 11% to £11.96.

Research from CGA by NIQ in February this year echoes this with three in five (60%) consumers telling the insight firm they would buy one or two high-quality drinks – more than the number (40%) who would buy three, four or five cheaper ones.

The popularity of low and no beer is still continuing with consumers as the Lumina data shows alcohol-free beer sales up 5% in the 12 weeks to 15 May 2023.

In fact, CGA by NIQ also identifies a similar trend in the low and no segment but shows overall beer sales were hit by the cost-of-living crisis and more than a fifth (22%) of consumers told CGA’s Consumer Pulse survey in late 2023 that it had led them to choose pints of beer or cider less often – double that (10%) of those who were buying them more.

Some of these sales migrate to cheaper no or low alternatives or soft drinks with almost one in five (19%) now buying these more often compared to 18% who say they are buying them less.

Elsewhere in CGA’s research, it shows while overall drinks categories value sales were flat in 2023, beer outpaced this trend with 3% growth, despite a 4% distribution decrease and a 1% drop in sales by volume.

Moreover, it shows world lager is being boosted by the premiumisation trend with the category seeing a 23.3% share of long-alcoholic drink sales in 2023 – up 2.6 percentage points year on year.

However, standard lager is the opposite, dropping 1.4 percentage points to 20.8%. At the end of last year, draught world lager was stocked in almost seven in 10 (69.1%) of outlets.

Stout is another sub-category winner, according to CGA, as its volumes grew by 18% and now has an 8.1% share of the long-alcoholic drink market.

The research reveals how beer sales tend to spike around big sporting occasion such as an average uplift of almost a quarter (23%) on matchdays during the World Cup.