Beverages: 5 key growth drivers for beer revealed
- InsightTrendsWorld
- Jun 7
- 12 min read
Why it is the topic trending:
Beer Market Outperforming Wider Drinks Sector: The beer category in the UK's pubs, bars, and restaurants is experiencing significant growth, outpacing other alcoholic and soft drink categories. This strong performance makes understanding its growth drivers crucial for industry stakeholders.
Substantial Market Value: The beer category contributes a significant £13.8 billion to the UK on-trade, highlighting its economic importance and the need to capitalize on its growth potential.
Identification of Key Growth Levers: A new report by Heineken UK identifies five specific areas that operators can focus on to further drive growth within the beer category, offering actionable insights for businesses in this sector.
Overview:
Beer Leads Drinks Market: The UK on-trade beer market is growing faster than cider, wine, spirits, and soft drinks.
Significant Market Value: The beer category is worth £13.8 billion to UK pubs, bars, and restaurants.
Heineken Report Insights: A new report outlines five key drivers for beer market growth.
Focus on Consumer Demand: These drivers respond to evolving consumer behaviors and preferences in the on-trade.
Actionable Strategies for Operators: The report aims to equip operators with strategies to capitalize on these growth opportunities.
Detailed findings:
Beer Outpaces Wider Drinks Market: The Heineken Beer Report 2025 indicates that beer is growing at a faster rate than cider, wine, spirits, and soft drinks in the UK on-trade.
3% Year-on-Year Value Growth: The beer category has seen a 3% increase in value compared to the previous year.
£13.8 Billion Market Value: The total value of the beer category in UK pubs, bars, and restaurants is £13.8 billion.
Five Key Growth Drivers Identified: The report highlights five key areas for operators to focus on:
The Perfect Serve: Consumers are willing to pay more for a high-quality drink experience.
The Wonderful Every Day: The shift towards lower-tempo, informal occasions and virtual socializing presents new opportunities, including earlier-in-the-day events like bottomless brunches.
Making Memories Together: Events, particularly sports screenings, are crucial for driving footfall, boosting sales, and increasing dwell time, especially as 97% of Generation Z seek unique experiences in pubs and bars.
Discover More: Consumers have a repertoire of around 15 brands but often decide on their drink upon arrival (44%). Operators should showcase brand stories and provenance, making new and interesting beers easily visible.
Mindful Choices: No and low-alcohol beer options are highly popular, and a lack of these can lead to disappointment and early departure, with 31% of consumers reporting this. Furthermore, 40% research alcohol alternatives before visiting a venue.
Beer is the Most Popular No and Low-Alcohol Alternative: This presents a significant opportunity for pubs and bars to cater to the growing demand for mindful drinking options.
Beer Facts and Stats:
£13.8bn - the size of the beer category in pubs, bars and restaurants by value
3% - year-on-year value growth
44% - share of wet value sales in the on-trade
£55,000 - annual average value of world lager in sales to a pub
19% - ale’s share of the beer market
12% - stout’s share of the beer market
Key success factors of product (trend):
High-Quality Product and Experience: Ensuring a "perfect serve" meets consumer willingness to pay more for quality.
Adaptability to Changing Social Habits: Capitalizing on the "wonderful every day" by hosting events for earlier, more informal occasions.
Creating Memorable Experiences: Leveraging events, especially sports, to drive footfall and engagement.
Offering Variety and Novelty: Showcasing a diverse range of beers and highlighting new or interesting options.
Catering to Health and Moderation Trends: Providing a strong selection of no and low-alcohol alternatives.
Key Takeaway:
The beer category is a significant and growing part of the UK on-trade. Operators can best capitalize on this growth by focusing on providing high-quality drinks and experiences, adapting to evolving social occasions, leveraging events, offering a diverse range of options, and catering to the increasing demand for no and low-alcohol alternatives. Understanding and implementing these five key drivers identified in the Heineken Beer Report 2025 is crucial for businesses in this sector to maximize their potential.
Main trend:
The main trend is sustained growth and evolution of the beer category within the UK on-trade, driven by evolving consumer behaviors.
Description of the trend (please name it):
The trend is "The Resilient and Adaptive Beer Market." This describes the beer category's ability to not only grow faster than other drink sectors in UK pubs, bars, and restaurants but also to adapt to changing consumer preferences, social habits, and the increasing demand for diverse options, including low and no-alcohol alternatives.
What is consumer motivation:
Desire for Quality and Experience: Consumers are willing to pay more for a well-served, high-quality beer.
Seeking Social Connection: Pubs and bars are seen as important spaces for socializing, whether during lower-tempo everyday occasions or celebratory events.
Demand for Unique Experiences: Especially among Generation Z, there's a desire for experiences in the on-trade that can't be replicated at home.
Interest in Exploration and Discovery: Consumers appreciate opportunities to try new and interesting beer brands with compelling stories.
Growing Preference for Mindful Drinking: Many consumers are seeking no and low-alcohol options for health or moderation reasons.
What is driving trend:
Changing Socializing Patterns: The shift towards more informal, daytime social occasions is creating new opportunities for beer consumption.
Importance of Experiential Consumption: Consumers, particularly younger generations, are prioritizing experiences over just products.
Increased Awareness of No and Low-Alcohol Options: The growing availability and visibility of these alternatives are meeting consumer demand.
Marketing and Innovation by Brewers and Operators: Efforts to highlight quality, provenance, and new products are driving consumer interest.
Cultural Significance of Beer in the UK: Beer remains a central part of the UK's pub culture and social scene.
What is motivation beyond the trend:
Tradition and Familiarity: Beer is a long-established and familiar choice for many pub-goers.
Affordability (Compared to Some Other Drinks): In certain contexts, beer can be a more affordable option compared to spirits or wine.
Versatility of Beer Styles: The wide variety of beer styles caters to diverse taste preferences.
Nostalgia and Comfort: For some, beer consumption is linked to positive past experiences and feelings of comfort.
Description of consumers article is referring to:
The article refers to a broad range of consumers in the UK who visit pubs, bars, and restaurants and choose beer as their drink of choice.
Who are them: Individuals across various age groups and demographics who frequent on-trade establishments for social occasions, celebrations, or casual outings.
What kind of products they like: They appreciate a high-quality, perfectly served beer, are interested in trying new and interesting brands, and increasingly seek no and low-alcohol alternatives. They also engage with a variety of beer styles, including lager, ale, and stout.
What is their age?: The article specifically mentions Generation Z's desire for unique experiences, indicating that younger consumers are a significant part of this market. However, the overall data suggests a broader appeal across age demographics.
What is their gender?: The article does not differentiate based on gender, implying that beer consumption in the on-trade is prevalent across genders.
What is their income?: The willingness of consumers to pay more for a high-quality drink suggests that value and experience can outweigh price for many on-trade beer consumers. The article doesn't explicitly focus on income levels.
What is their lifestyle: This includes individuals who socialize in pubs and bars, attend sporting events, and engage in both daytime and evening social activities. It also encompasses those who are mindful of their alcohol consumption and seek lower-alcohol options.
What are their category article is referring shopping preferences: They often decide on their drink upon arrival at the venue and are influenced by the availability of a wide range of options, including new and interesting beers. They also value quality of serve and increasingly research no and low-alcohol options beforehand.
Are they low, occasional or frequent category shoppers: They are likely to be regular visitors to pubs and bars, given the significant market value of the beer category in the on-trade.
What are their general shopping preferences-how they shop products, shopping motivations): They are motivated by the desire for a good social experience, quality products, and increasingly, options that align with health and moderation. They are open to trying new things but also have a repertoire of trusted brands.
Conclusions:
The Heineken Beer Report 2025 provides valuable insights into the continued strength and evolution of the beer market within the UK on-trade. The five key growth drivers identified highlight the importance of quality, adaptability to social trends, experiential offerings, variety, and catering to mindful drinking habits. Operators who strategically focus on these areas are well-positioned to capitalize on the resilience and growth potential of the beer category.
Implications for brands:
Focus on Quality and "Perfect Serve" Initiatives: Beer brands should support on-trade operators in ensuring their products are served to the highest standard.
Innovate with No and Low-Alcohol Options: Continued development and promotion of compelling no and low-alcohol beers are crucial to meet growing consumer demand.
Highlight Brand Stories and Provenance: Brands should provide interesting narratives and information that operators can share with consumers to drive trial.
Support On-Trade Events and Promotions: Collaborating with pubs and bars on events, particularly around sports, can boost visibility and sales.
Implication for society:
On-Trade as Important Social Hub: The report reinforces the role of pubs and bars as vital spaces for social interaction and community.
Growing Acceptance of Mindful Drinking: The increased demand for no and low-alcohol options reflects a broader societal trend towards health and moderation.
Implications for consumers:
Expectation of Higher Quality: Consumers can expect and should demand a high standard of serve for their beer in the on-trade.
Wider Range of Options Available: The focus on discovery and mindful choices should lead to a greater variety of beer styles and no/low-alcohol options in pubs and bars.
More Engaging Experiences: Operators are likely to focus on creating more memorable and engaging experiences around beer consumption.
Implication for Future:
Continued Growth of No and Low-Alcohol Sector: This segment of the beer market is set for further expansion.
Importance of Experiential Offerings: The on-trade will likely continue to emphasize experiences to compete with at-home consumption.
Data-Driven Approach for Operators: Understanding consumer trends and utilizing data will be increasingly crucial for success in the beer market.
Consumer Trend (name, detailed description):
The Evolving On-Trade Beer Consumer: This trend describes the changing preferences and behaviors of individuals who consume beer in pubs, bars, and restaurants. They are increasingly valuing quality, experiences, diverse options, and mindful drinking choices.
Consumer Sub Trend (name, detailed description):
The Demand for "Experiences Over Things" in Pubs: This sub-trend highlights the desire, particularly among younger generations, for on-trade venues to offer unique and memorable experiences, such as sports screenings and themed events, that go beyond simply selling drinks.
Big Social Trend (name, detailed description):
The Wellness and Moderation Movement: Globally, there is a growing social trend towards prioritizing health and wellness, which is reflected in the increasing demand for low and no-alcohol beverages.
Worldwide Social Trend (name, detailed description):
The Enduring Role of Pub Culture (Especially in the UK): While social habits evolve, the pub remains a significant cultural institution in the UK, playing a vital role in social interaction and community building.
Social Drive (name, detailed description):
The Pursuit of Quality Social Experiences: Consumers are motivated to visit on-trade venues for quality social interactions and memorable experiences, and their beverage choices are a key part of this.
Learnings for brands to use in 2025:
Support the "Perfect Serve": Invest in training and resources for on-trade partners to ensure their beers are served correctly.
Continue Innovation in No and Low-Alcohol: Develop and market a diverse and appealing range of lower-alcohol options.
Help Operators Tell Brand Stories: Provide engaging content and information that pubs and bars can use to connect consumers with their brands.
Facilitate Experiential Consumption: Partner with on-trade venues to create and support events that drive footfall and enhance the consumer experience.
Strategy Recommendations for brands to follow in 2025:
Invest in Quality Assurance: Ensure consistent high quality across all their beer offerings.
Expand No and Low-Alcohol Portfolio: Offer a variety of appealing options to cater to the growing mindful drinking segment.
Develop Engaging Brand Assets for On-Trade: Create visually appealing and informative materials for pubs and bars to showcase their beers.
Forge Partnerships for Events and Activations: Collaborate with on-trade operators to sponsor or host events that attract target consumers.
Final sentence (key concept) describing main trend from article (which is a summary of all trends specified), and what brands & companies should do in 2025 to benefit from trend and how to do it.
In 2025, the key to success in the resilient and adaptive UK on-trade beer market lies in understanding and catering to the evolving consumer who seeks quality, experiences, variety, and mindful choices, requiring brands and operators to prioritize these factors in their offerings and strategies.
Final Note:
Core Trend: The Evolving On-Trade Beer Consumer: Shifting consumer preferences towards quality, experiences, variety, and mindful drinking in UK pubs and bars.
Core Strategy: Focus on Quality, Experience, Variety, and Mindful Choices: Brands and operators should strategically prioritize these elements to meet evolving consumer demands.
Core Industry Trend: Growth and Adaptation in the Beer Market: The beer category in the UK on-trade is not only growing but also adapting to changing consumer behaviors and preferences.
Core Consumer Motivation: Pursuit of Quality Social Experiences with Diverse and Mindful Options: Consumers visit pubs and bars seeking enjoyable social interactions, and their beer choices reflect a desire for quality, variety, and options that align with health and moderation.
Final Conclusion:
The Heineken Beer Report 2025 paints a positive picture for the UK on-trade beer market, highlighting its continued growth and resilience. However, this success is contingent on the industry's ability to understand and respond to the evolving needs and desires of consumers. By focusing on the five key growth drivers – perfect serve, everyday occasions, shared memories, discovery, and mindful choices – brands and operators can ensure they are well-positioned to thrive in this dynamic and culturally significant market.
Core Trend Detailed: description.
The core trend, The Evolving On-Trade Beer Consumer, describes a significant shift in what consumers expect and value when choosing beer in pubs, bars, and restaurants. This evolution moves beyond simply seeking a standard pint and encompasses a more holistic view of the drinking experience. Consumers are becoming more discerning about the quality of the beer itself, including how it's served. They are also placing greater emphasis on the overall social occasion, seeking venues that offer engaging experiences and cater to a wider range of socializing opportunities, from casual daytime meetups to lively sports events. Furthermore, there's a growing demand for variety, with consumers showing interest in exploring new brands and styles. A particularly notable aspect of this evolution is the increasing importance of mindful consumption, driving a significant demand for appealing and high-quality no and low-alcohol beer alternatives. This evolving consumer is more informed, more experience-driven, and more conscious of their choices than perhaps ever before.
Key Characteristics of the Core trend:
Increased Demand for Quality ("Perfect Serve"): Consumers are willing to pay a premium for beer that is served perfectly, indicating a higher value placed on the overall drinking experience.
Preference for Experiential Consumption ("Making Memories Together"): Consumers, especially Gen Z, seek out on-trade venues that offer unique experiences and opportunities for social connection, like sports screenings and special events.
Growing Interest in Variety and Discovery ("Discover More"): Consumers are more open to trying new and interesting beer brands and appreciate when operators make it easy to discover these options.
Significant Rise in Mindful Drinking ("Mindful Choices"): There is a substantial and growing demand for high-quality no and low-alcohol beer options, with consumers actively researching these alternatives before visiting venues.
Adaptation to Diverse Social Occasions ("The Wonderful Every Day"): Beer consumption is no longer solely tied to traditional evening occasions but is expanding to earlier, more informal social gatherings.
Market and Cultural Signals Supporting the Trend:
Year-on-Year Value Growth: The 3% value growth in the beer category indicates sustained consumer demand.
Consumer Willingness to Pay More: The 50% of consumers willing to pay extra for quality signifies a shift in priorities beyond just price.
Generation Z's Focus on Experiences: The 97% of Gen Z wanting unique pub experiences highlights the importance of the experiential aspect.
Demand for No/Low Alcohol Leading to Missed Sales: The 31% of consumers leaving venues early due to lack of options clearly demonstrates the market demand for mindful choices.
Research into Alcohol Alternatives: The 40% of consumers researching no/low options shows a proactive interest in this segment.
How the Trend Is Changing Consumer Behavior:
More Discerning Choices: Consumers are likely to be more selective about the beer they order, paying attention to quality and serve.
Increased Venue Selection Based on Experience: Consumers, particularly younger demographics, may choose pubs and bars based on the events and atmosphere they offer.
Greater Exploration of Beer Styles and Brands: Consumers are becoming more adventurous and interested in trying different types of beer.
Active Seeking of No and Low-Alcohol Options: Consumers are making conscious decisions to opt for lower or zero alcohol alternatives for various reasons.
Earlier and More Frequent Visits to On-Trade: The shift towards "everyday" socializing indicates that consumers are utilizing pubs and bars for a wider range of occasions and times.
Implications Across the Ecosystem:
For Brands and CPGs:
Need to invest in product quality and support training for perfect serve.
Crucial to innovate and expand portfolios in the no and low-alcohol segment.
Opportunity to highlight brand heritage and stories to capture consumer interest in discovery.
For Retailers (On-Trade):
Must prioritize staff training to ensure high-quality service and perfect serve.
Should curate a diverse beer selection, including a strong range of no and low-alcohol options.
Benefit from hosting events, especially those appealing to younger generations (sports, themed nights, bottomless brunches).
Should effectively communicate the availability of new and interesting beers to customers.
For Consumers:
Can expect a greater focus on quality and experience in pubs and bars.
Will likely have access to a wider variety of beer options, including more appealing no and low-alcohol choices.
May need to be willing to pay slightly more for a premium experience.
Strategic Forecast:
The demand for high-quality beer and experiences in the on-trade will continue to grow.
The no and low-alcohol beer sector will see significant further expansion and innovation.
Experiential offerings will become increasingly crucial for on-trade venues to attract and retain customers, especially younger demographics.
Data analytics will play a growing role in helping operators understand and cater to evolving consumer preferences in the beer market.
Areas of innovation (based on discovered trend):
Enhanced Training Programs for On-Trade Staff: Focusing on the art of the "perfect serve" and beer knowledge.
Development of More Sophisticated and Flavorful No and Low-Alcohol Beers: Moving beyond basic options to offer genuine alternatives.
Technology Solutions for Beer Discovery in Venues: Apps or digital menus that provide detailed information and recommendations.
Creative Event Concepts Catering to Diverse Occasions: Beyond just evening drinking, focusing on daytime and mid-week activities.
Sustainability Initiatives within the Beer and On-Trade Sectors: Appealing to environmentally conscious consumers.
Final Thought (summary):
The UK on-trade beer market is thriving due to its ability to adapt to evolving consumer demands. By prioritizing quality, creating memorable experiences, offering diverse choices, and embracing the growing trend of mindful drinking, brands and operators can ensure continued success in this resilient and culturally significant sector.
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