HEINEKEN UK has released the HEINEKEN Beer Report 2023, the second in its annual series, which provides insights into the trends shaping the beer industry. The report comes at a time when the cost of living is increasing, impacting consumer choices and spending patterns in the beer market.
According to the research, 50% of consumers are unlikely to reduce their consumption of premium beers despite the economic pressures. This trend has been largely driven by 18-34-year-olds who have been less willing to go without premium beer.
The report emphasises the rise of “accessible premiumisation,” where consumers are looking for higher quality beers at an affordable price. This move has seen a shift from classic beer brands to the premium or premium 4% category, a category filled with options that often boast premium quality cues like taste and heritage. One of the highlights from the report includes the growth of world lager’s value share to 27% in 2022, up from 22.7% the previous year. Draught lager, Cruzcampo®, is mentioned as an example and Heineken say it can benefit from the increasing demand for Mediterranean lager in the UK.
While 29% of 18-34-year-olds are reportedly drinking more craft beer than last year, the report indicates a slowdown in the growth of the craft beer category. The focus seems to have shifted to larger craft brands as consumers prioritise quality experiences over experimentation, a possible effect of the pandemic and increased living costs.
Interestingly, classic lager brands continue to hold strong appeal. The research reveals that 55% of drinkers plan to stick with known and liked brands in the coming year, while 43% are consuming the same amount of classic brands as last year.
Will Rice, HEINEKEN UK On-Trade Director, said, “In its second year, HEINEKEN UK’s Beer Report continues to unveil profit-driving trends and data for operators. In the midst of a cost-of-living crisis, more than ever we’re seeing a greater emphasis on ‘smart spending’ to maximise the return from disposable income.
“Beer drinkers are increasingly looking for value for money. Consumers are looking to prioritise their experience in the on-trade, primarily by buying into beer brands they believe can deliver on that premium quality experience. The key to any offer is ensuring the brand selection has maximum appeal to the specific customers and for the occasions to which your venue caters, while hitting different points of your pricing ladder.”
Download the free HEINEKEN Beer Report here
