UK consumption down, but beer booms

While alcohol consumption in the UK continues to fall – dropping by nearly 20% in the past decade – beer has managed to buck its own 20-year decline, increasing market share by 1% in 2014.

Beer’s market share in the UK grew 1% in 2014 – the first noticeable rise in 20 years

Figures released today show the average person in the UK drank 7.57 litres of alcohol in 2014, compared to 9.51 litres in 2004. Currently levels of consumption in the UK are at a 16-year low.

However, despite the UK’s changing tastes, beer’s share of the drinks market actually increased by 1% last year. This is the first time that beer has increased its market share since 1995, barring a small blip in 2006.

The data is compiled annually by the British Beer and Pub Association (BBPA), an industry body that represents the country’s pub chains and beer brewers, using analysis of HMRC alcohol tax returns.

Beer commanded 36% of the UK’s drinks market in 2014, up 1% on the previous year, with second-placed wine slipping below 33 per cent. Spirits share of the market held steady, at 21%, with cider at 8 per cent.

The BBPA are using the figures to call for a third cut in beer duty in the March Budget, saying it would “further boost Britain’s locally-made, lower-strength national drink and pub favourite.”

As the drinks business reported last week, MPs close to the Treasury have claimed that this third cut in beer duty is almost guaranteed to be announced in the Budget next week.

The association claims that the two previous cuts in duty, combined with the scrapping of the duty escalator, has helped increase sales and bring in £3.36 billion in beer duties in 2014, up 1.8 per cent compared with the previous year.

Brigid Simmonds, BBPA Chief Executive, said: “While the figures certainly bury the myth that overall UK alcohol consumption is inexorably rising, it is hugely encouraging to see such a solid performance from beer in 2014.

“There is no doubt that two cuts in beer duty have had a huge impact in supporting a British-based industry and in encouraging consumers back towards our favourite, lower-strength drink.”

She continued, “With new investment in the beer category protecting pubs and creating jobs, it all adds to an overwhelming case for a third, historic cut in beer duty in the Budget on 18th March.”