Lower alcoholic drinks sales are booming

20th February 2009, 10:37am

Long tainted as desperately uncool, latest research from Mintel shows the market for lower alcoholic drinks (LADs) is booming.

Following years of stagnant growth, sales of LADs are thriving, with value and volume having both increased by around 10% in the last two years alone.

Last year consumers spent £66.3 million, downing over 20 million litres - the equivalent of an 76 pints per minute.

Michelle Strutton, Senior Market Analyst at Mintel: "Growth in the low alcoholic drinks market has been driven by improvements in quality. These drinks offer the taste sensation not met by many sweet soft drinks today. An on-going national focus on anti-social binge drinking, safe driving and health issues is also driving consumer demand, as health conscious consumers cutback on their alcohol intake."

Although the market remains small and niche, at just 0.3% of volume sales in the alcohol market, sales of these lower alcoholic varieties are outperforming the alcohol market as a whole.

It is beer, which is driving sales of LADS with a share of around 80%. But as with the overall drinks market, greatest value and volume growth is occurring in the wine and cider categories. Value sales of cider alone have doubled (100%) over the last two years, albeit from a very low base.

"Sales of lower alcoholic drinks are going from strength to strength. Innovation is driving the market with new launches and brand extensions, and product quality continues to improve. 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," explains Michelle.

Mintel forecasts the low alcoholic drinks market will increase in value by 25% over the next five years to reach £82.7 million by 2013. 

Volume is expected to grow more slowly, reflecting the premiumisation of this market.

Related Articles:

• 27 Aug 2009 - Drinkers are consuming more 100% alcohol, says Mintel
• 16 Apr 2009 - Consumers cut back on trips to the pub
• 16 Mar 2009 - Minimum alcohol price plans to be unveiled
• 10 Mar 2009 - WSTA Procurement auctions deliver big cost savings

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