The analysis, produced by Oxford Economics and commissioned by the British Beer and Pub Association (BBPA) and The Brewers of Europe, found the revised duty system had encouraged growth in lower strength beer sales and supported greater consumer choice.
Under the Alcohol Duty Review, which came into effect in August 2023, drinks of 3.4% ABV and below were given a lower tax rate, alongside the introduction of draught duty relief to support pubs.
912m sold
The BBPA said sales of lower strength beers, classed as between 1.3% and 3.4% ABV, had grown from 0.4% of the market in 2022, equivalent to 35m pints, to more than 12%, or 912m pints.
The trade body said the change had encouraged brewers to invest in new lower strength beer ranges, giving pub customers more options while supporting public health objectives.
BBPA chief executive Emma McClarkin said: “It is clear that a progressive alcohol duty regime that incentivises lower strength products can help grow the economy, give people more options, and support public health goals.
“Beer is already a low strength alcohol beverage, but brewers have come up with an incredible choice of lower strength products, which means more people than ever before can moderate and pubs can give people a great choice.”
Wider duty pressure
The findings come during a week of renewed tax pressure on hospitality, with operators also calling for broader VAT reform through Tom Kerridge’s #VATsTheProblem campaign, alongside continued concerns over alcohol duty, business rates and employment costs.
The BBPA said the growth of lower strength beer demonstrated how targeted duty incentives could support brewers and pubs while giving consumers more choice.
The research said the changes had helped businesses make progress against the objectives set out by Government, pointing to product reformulation below 3.5% ABV and increased consumption volumes of lower strength drinks.
It added that academic literature suggested a reduction in alcohol units of this scale would result in population level health benefits.
However, McClarkin said UK beer drinkers continued to pay among the highest duty rates in Europe, while brewers and pubs were facing sharp increases in the cost of doing business.
She added: “This is why we need to go further and cut beer duty to support our brewers and pubs, ensure a pint remains affordable for all, and help give consumers more choice.”
The BBPA said pubs now serve a wide range of lower strength and alcohol free beers, providing greater choice for customers seeking moderation.
According to the trade body, the UK has the third highest beer duty rate in Europe, with drinkers paying 12 times more than in Spain and Germany and three times the European average.
