Amid a flood of low and no alcohol products entering the market, new research suggests that significant barriers still exist which are preventing consumers from purchasing drinks in the category.
The Low2No Alcohol Report 2021 by Lumina Intelligence found the main barriers were the cost of products (16% of consumers surveyed) and their perceived poor value for money (14%). Not believing in the health benefits (11%) and a lack of exposure in-store and behind bars were also cited as reasons consumers were not purchasing Low2No products more often.
In the on-trade, the key reason to purchase is ‘if I am driving’, with 19% of consumers citing this motivation. This is followed by product appeal (8%), which is the most important motivation for buying Low2No in the on-trade in London – reflecting both lower car ownership as well as a more developed Low2No offer in the capital.
Other motivations for purchasing in a pub, bar or restaurant were drinks being part of a promotion (6%) and the desire to avoid a hangover (6%).
Within the off-trade, the primary motivations for buying Low2No drinks is experimentation and health, with 12% of consumers citing a desire to try something new and the same proportion wanting a healthier option. Driving is a less important factor than in the on-trade at 10%, whilst 8% are purchasing as they want to consume fewer calories.
Lumina Intelligence highlighted that supermarkets are key for driving the category, both as the most common place that consumers first purchase the category and also as the main channel used by those purchasing the category frequently. 43% of consumers most regularly visit a supermarket to purchase Low2No products, whereas 11% choose supermarket online, 10% a pub, 8% a convenience store and 8% a discounter.
Blonnie Whist, Insight Director at Lumina Intelligence, commented: “The Low2No category continues to see tremendous growth, with supermarkets playing a pivotal role in driving awareness of the category as the most common place for the first purchase. We have seen some really innovative examples of retailers and operators within other channels really getting behind the category and offering a comprehensive range that drives interest in Low2No, however it is clear that there remains a significant untapped opportunity.
“Price and visibility remain the main barriers to consumers purchasing more Low2No products. The category continues to evolve with exciting NPD regularly hitting the market, however retailers and operators need to play their role by making the category as visible as possible on shelves in-store, behind bars and on menus.”
