Beer market suffers £2.2 billion decline

By Adam Pescod

- Last updated on GMT

Related tags Alcoholic beverage Mintel Uk

Decline: The UK beer market has suffered a £2.2bn fall in revenue since 2006
Decline: The UK beer market has suffered a £2.2bn fall in revenue since 2006
The beer market has suffered a £2.2 billion fall in revenue since 2006, according to the latest figures from market research experts Mintel.

Mintel's new Beer UK 2011 ​report reveals how a decline of pub drinking and lack of broader consumer appeal beyond men has seen beer lose a significant loss of market share over the past six years.

The figures show that while the beer market was worth £17.7 billion in 2006, it will take just £15.5 billion in 2011.

Beer volume sales decreased by almost a quarter (23%) over the same period, down from 4.1 billion litres in 2006 to 3.2 million litres in 2011.

Beer’s total share of the off-trade has risen as drinking at home has become more popular across the UK. However, unlike spirits and wine it has still seen its volume sales decline in the off trade: from 2.38 billion litres in 2006 to 2.25 billion litres in 2010.

Jonny Forsyth, senior drinks analyst at Mintel, said: “The economic downturn and rising differential between on and off trade beer and alcohol prices has hit the pub trade heavily and led to more UK consumers migrating to in-home drinking. Beer has been particularly badly hit - it suffers from being perceived as less suited than its competitors for in home drinking.

“This is because its male user bias makes it less of a compromise choice for couples than wine or spirits, and it is less associated with food matching or relaxing occasions than either of those drinks categories.

“The reason why beer is reliant on pubs is that it remains a core drink for young men - almost a rite of passage - and many choose it because in pubs, the size and price of a pint seem so much better value than most other drink options.”

Mintel’s research goes on to show that more than two in five (44%) of on-trade drinkers today see drinking out of home as too expensive which has meant that a once regular night out occasion has become more of an occasional luxury.

Related topics Beer

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