Social pressure holds back sales of alcohol-free drinks, research finds

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Most consumers say it’s acceptable to drink no- or low-alcohol when they go out, but some choose alcohol because of social pressures, according to Heineken and Oxford University research.

The study, based on an Ipsos survey of 11,842 adults of various ages in the UK, US, Spain, Japan and Brazil, found that 68 per cent had tried no- or low-alcohol alternatives and 80 per cent believed that drinking them. It was more acceptable than five years ago.

Yet half of those who drink alcohol at least once or twice a year say they “always” or “sometimes” drink alcohol at social events, despite the desire to have low- or no-alcohol options.

“Reports from people who suggest they want to use non-alcoholic versions of alcoholic beverages don’t always translate into increased sales,” says Charles Spence, professor of experimental psychology at the University of Oxford.

“Despite the higher acceptance of non-alcoholic drinkers . . . it is clear that people still sometimes face social judgment from others regarding their non-alcoholic beverage choices,” he added.

A number of challenges for research have been identified No- and low-alcoholic beverages Categories with price compared to alcoholic beverages, taste expectations and social factors.

At 68 percent who consumed low- or no-alcohol drinks, the largest age group was Gen Z at 73 percent, followed by the Baby Boomer generation at 58 percent.

However, Gen Z (ages up to 27) also felt the most social pressure to drink alcohol, the study found, with more than a third of respondents in this age group saying they felt pressured to do so in social situations.

About 21 percent of Gen Z consumers surveyed said they were “put out” to choose a non-alcoholic beverage, compared to an average of 15 percent among all age groups.

Among Gen Z, the survey found that men are more susceptible to social pressure than women, with 38 percent saying they would only drink low- or non-alcoholic beverages if their friends did, and 30 percent saying they would feel the need to justify it. choice

For Gen Z women, 35 percent said they would drink less alcohol if their friends did.

The no- and low-alcohol drink category has grown over the past five years as people have become more focused on healthy lifestyles.

Big brewers including Heineken and AB InBev have invested heavily in advertising and product launches to capitalize on the trend, creating a new market for brewers as beer consumption slows. According to beverage data provider IWSR, global beer consumption is expected to decline by 1 percent in 2023.

The no- and low-alcohol category is currently expected to grow at a CAGR of 4 percent over the next four years in the sector’s 10 key markets. Only alcohol-free products are expected to grow at a rate of 7 percent.

Heineken says its Heineken 0.0 alcohol-free beer has an 18 percent market share. The brand’s sales grew 14 percent in the first half of 2024, compared to an overall increase in group beer sales of 2.1 percent.

Spence said consumers in the five countries surveyed have moved beyond a “definitely curious” phase into a “more balanced pattern” of alcoholic and low- or no-alcoholic beverage consumption, thanks to the latter’s increasing availability and improvements in taste. .