According to the latest 'FMCG Demand Signals' report from IRI, alcohol value sales in grocery stores across Europe saw a decline of 4% in 2022, resulting in a loss of €2.7bn (£2.4bn) to €66bn (£58bn). This drop in alcohol sales is even lower than pre-pandemic levels.
Ananda Roy, Global Senior Vice President of Strategic Growth Insights at IRI, attributes this decline to the cost-of-living crisis, saying, "Households are having to make trade-offs to moderate its impact on their available income, prioritizing food staples and small indulgent treats over discretionary items like alcohol."
However, the report also shows that low & no value sales have grown 3.7% YoY across Europe, and players in this category are reaping the benefits. Alcohol-free beer brand Freestar reported a 427% increase in website sales during the first week of 2023, while Kylie Minogue's 0% abv Sparkling Rosé sold more than 147,000 bottles in its first 12 weeks, according to Benchmark Drinks.
These results indicate that sober curious consumers are willing to invest in alternative beverage options, even when budgets are tight. So, whether it's for health, personal preference, or financial reasons, the trend towards non-alcoholic drinks is here to stay.
