New research forecasts that sales of zero alcohol drinks in Europe will grow almost 10% a year over the next 5 years, with the UK a key driver.
The European Zero Alcohol Drinks report by Zenith Global estimates that the market was worth €5.9bn in 2018 and will hit €9.3bn by 2023.
The study notes the dominance of West Europe in both volume and value terms, achieving shares in excess of 80%. The UK is expected to achieve the highest growth rate at 30% a year, although Germany is likely to be the first to reach 1 billion litres by 2023.
The four key growth drivers were found to be increasing consumer attention to health and wellbeing, a cultural shift away from alcohol, technical advances in improving taste, and marketing for more consumption occasions.
For example, zero alcohol beers have been marketed in Germany as isotonic sports drinks available from vending machines. Another wider advertising campaign has promoted zero alcohol drinks in an office environment.
Zenith Global Chairman Richard Hall commented: “Zero alcohol drinks have moved from reluctant compromise to positive engagement. Among the best are products with big brand backing and full taste equivalence or ground breaking challengers with strong ethical credentials.
“Zero alcohol drinks offer a major market opportunity in the coming years, both in countries where they are already established and in regions where they have yet to become significant. This is especially the case in markets where alcohol consumption volumes have been static or declining.”
NAM Implications:
- 30% growth rates in the current climate has to represent an opportunity for some…
- …albeit at the expense of traditional alcoholic drinks…
- …and possibly carbonated beverages.
