At the end of 2021, CGA’s On Premise Measurement service (OPM) reveals the no/low alcohol segment within beer was worth just under $100 million in sales compared to $99 million at the end of 2019 – demonstrating that the segment has recovered back to 100% of its pre-COVID-19 levels.
OPM data also highlights that no/low is also one of the fastest growing segments within beer, increasing by 96% in the latest 52 weeks, further demonstrating that this is not a temporary trend for the category.
The percentage of beer drinkers consuming no/low alcohol beer increasing to 16% by Fall 2021 from 12% in Fall 2019 . Intriguingly, beer drinkers have also been experimenting with other no/low alcohol categories. The no/low spirits segment has seen engagement grow to 11% in 2021 from 8% in Fall just two years earlier, while no/low wine saw consumer engagement increase to 13% from 8% in the same time period. Beer drinkers have even increased their engagement with mocktails, to 13% in Fall 2021 from 8% in Fall 2019, highlighting that there’s obvious demand for better-for-you alcohol alternatives in the On Premise – and particularly within beer.
Within the no/low alcohol beer segment, there are also substantial opportunities for new entrants to solidify a place as a major supplier. At the end of 2019, the top three brands within the segment accounted for a 60% share, and by the end of 2021 this had only grown to 70% – making the no/low alcohol beer segment significantly less competitive than other segments within the lower alcohol space.
All evidence suggests that the no/low alcohol beer segment will continue to strengthen its position within the category as consumer demand for alcohol alternatives continues to grow, CGA said.
Patrick Bannon, CGA Client Director, Americas, said: “No/low is clearly becoming a more popular choice for On Premise visitors, and in particular beer drinkers. It will be interesting to see how beer drinkers’ tastes and preferences evolve over time within this segment. If beer manufacturers can reproduce some of the great tasting beer that consumers know and love as no/low alternatives they are putting themselves in the best position for success. As strategies will need to adapt to an ever-changing segment, we at CGA will be keeping our finger on the pulse of the beer category through our OPM read as well as more valuable areas such as BeverageTrak.”
OPM is the only fully projected, extensively validated, measure of beverage alcohol performance in the American On Premise. Used to track share and trends by all the leading beverage suppliers, OPM is the most robust view of sales performance for bars and restaurants ever produced in the US.