Demand for spirits and beer has sagged this year as Brits opted for healthier and cheaper alternatives to their traditional tipple, according to new data.
A combination of the cost-of-living crisis and government hikes on alcohol duty have pushed some bottles out of reach, with 10 per cent tax hikes pushing up the price of spirits by five per cent on average.
The decline in sales is visible across all alcoholic drinks categories except for wine, with alcohol brands accounting for five out of the top ten fastest-falling grocery products in terms of sales this year, according to consumer intelligence firm NIQ.
“Shoppers [have] cut back on takeaways and eating out to save money,” Rachel White, managing director UK & Ireland at NIQ, said. “Perhaps this is [also] a nod to trends in healthier living – with consumers taking the time to prepare meals together, sourcing fresh and healthy products [as well as] consuming less alcohol.”
It’s a continuation of a trend which started in 2023, when rising prices and the cost-of-living crisis reduced disposable incomes for discretionary spending, while more moderation coupled with closure and reduced opening hours of shops created lasting effects on consumer behaviour, according to IWSR.
Overall, the amount of spirits sold in the UK dropped by £51.6m this year, while sales of champagne dropped £12.1m. Sales of Foster’s and Carling beer fell by £34m and £22.2 respectively, while sales of Gordon’s gin dropped £21.4m, according to NIQ.
Three quarters of wines face price rises in 2025
While wine had a good year compared to beer – sales were up by £242.4m – further revisions to the UK’s excise duty regime in 2024 are likely to lead to price increases for up to three quarters of still wines.
The single amount of duty paid on wines between 11.5-14.5 per cent abv – £2.67 – is set to be replaced with a scaleable system whereby stronger wines are taxed more. For a bottle of wine at 14.5 per cent abv, this will see wine duty increase from £2.67 a bottle to £3.09.
In October, four of the UK’s biggest wine sellers said that the changes to alcohol duty will lead to price rises in a bleak warning to their customers.
The retailers also warned that the quality and choice of wine available to purchase would decrease.
“There is a genuine risk that some [producers] will stop shipping [wine] to the UK entirely, due to the additional administrative burden that will be involved in exporting wine to Britain,” the retailers said.
