Lower ALC Beer Report

Another quiet revolution is taking place in the alcoholic beverage markets of the world’s higher-income countries: a trend toward lower-alcohol and even no-alcohol beverages (hereafter Lo-No for short). This new trend adds to the long-term consumer trend in affluent countries of substituting quality for quantity in many of their purchases (premiumization) which, in the case of alcoholic beverages, has been driven in part by a desire for a healthier lifestyle. More-affluent consumers also desire a greater variety than is typically available from large producers of regular products, which has led to a craft beverage revolution. Both desires – for lower-alcohol beverages and for a greater variety of quality offerings – are driving the Lo-No revolution.

This report reveals that Australian brewers are leading the way in building the Lo-No beer categories. This latest trend adds to the beer industry’s already massive contribution to lowering national alcohol consumption, which began with consumption per adult (over 14 years) steadily declining from its peak in 1975 of 6.3 litres of alcohol (LAL). Now just 3.0 LAL per year are consumed as beer.