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

Open Editor’s Digest for free

FT editor Rula Khalaf picks her favorite stories in this weekly newsletter.

According to research by Heineken and the University of Oxford, most consumers say it’s acceptable to drink no or low-alcohol drinks when they go out, but some still choose to drink because of social pressure.

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 alcohol-free or low-alcohol alternatives, and 80 per cent believes that drinking them was more acceptable than five years ago.

However, of those who drink alcohol at least once or twice a year, half say they “always” or “sometimes” drink alcohol on social occasions, despite intending to have low- or no-alcohol options.

“Reports from people suggesting they want to try non-alcoholic versions of alcoholic beverages do not always translate into increased sales,” said report author Charles Spence, professor of experimental psychology at the University of Oxford.

“Despite the high acceptance of non-drinkers . . . It is clear that people still sometimes face the social judgment of others when choosing non-alcoholic beverages,” he added.

The research identified a number of challenges non- and low-alcohol beverages category, including price relative to alcoholic beverages, taste expectations, and social factors.

Of the 68 percent who tried low- or no-alcohol beverages, the largest age group was Gen Z at 73 percent, followed by baby boomers at 58 percent.

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

Some 21 percent of Gen Z consumers surveyed said they had been “called on” to choose a non-alcoholic beverage, compared to an average of 15 percent across 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 drink low- or no-alcohol drinks only if their friends did, and 30 percent saying , that will feel the need to justify the choice.

For Gen Z women, 35 percent said they would only have low-alcohol drinks if their friends drank.

The alcohol-free and low-alcohol category has grown over the past five years as people have focused more on healthy lifestyles.

Major brewers, including Heineken and AB InBev, have invested heavily in advertising and product launches to capitalize on the trend, which has created a new market for brewers as beer consumption has slowed, according to beverage data provider IWSR global volumes are down 1 percent in 2023.

Meanwhile, the alcohol-free and low-alcohol category is expected to grow at a compound annual rate of 4 percent over the next four years, with alcohol-only products expected to grow at 7 percent.

Heineken said its alcohol-free beer, Heineken 0.0, had an 18 percent market share.The brand’s sales rose 14 percent in the first half of 2024, compared with overall beer sales growth of 2.1 percent for the group.

Spence said consumers in the five countries surveyed had moved from a “sober curiosity” phase to a “more balanced pattern” of consuming both alcoholic and low-alcohol beverages, thanks to the increased availability and improved taste of the latter.