70% of beer consumption set to be premium or super-premium by 2025

 – Budweiser Brewing Group UK&I forecasts continued momentum towards premiumisation, with super-premium currently growing two times ahead of the category 

– The premium and super-premium category is currently worth £3.4bn, up 5% year-on-year 

Budweiser Brewing Group, which brews some of the UK best-loved beers including Budweiser, Stella Artois and Corona, is forecasting that by 2025, 70% of total beer consumption will be of brands in the premium or super-premium category.¹

Covid-19 cemented the trend towards premiumisation as shoppers sought out known and trusted brands. As a result, super-premium is now the number one growing segment in the overall beer category, growing two times ahead of the total category.² The premium and super-premium category now equates to 61.7% of total of beer value in the Off-Trade.

Key to the success of the premium and super-premium category will be World Beer, which is currently worth £1.1bn and has grown in value by £0.5 billion since 2017.³ The segment presents a unique sales opportunity for retailers with two thirds of World Beer spend coming from shoppers with two or more beers in their repertoire.⁴ Popularity of the segment is evident through the UK’s number one World Beer, Corona, which saw its rate-of-sale grow 25% last year.⁵

The trend towards premiumisation is also replicated in the no-and-low category. The premium?no-and-low?beer category grew 23% YOY⁶ as consumers sought to treat themselves whilst moderating their alcohol consumption. Brand is the most important factor for consumers when deciding which?no-and-low?product to buy?-?ahead of calories, ingredients, taste claim and ABV,³ cementing the opportunity around premium no-and-low options. Budweiser Zero and Stella Artois Alcohol Free are premium options that build on the success of their parent brands. Both beers have proven a hit with consumers, growing significantly ahead of the total no-and-low category and showing triple digit growth across both volume and value. ⁷

“Covid-19 had massive long-term implications on how Brits consume beer. As we look ahead to 2022 and beyond, premiumisation is our big bet,” said Mark Wingfield-Digby, Off-Trade Sales Director at Budweiser Brewing Group. “Combined with the increased momentum for at-home beer consumption, there’s a huge opportunity for retailers to drive sales through a robust premium line-up.”

^{1 Budweiser Brewing Group Forecasting October 2021}

^{2 Nielsen Off trade coverage YTD} 

^{3 Nielsen Scantrack GB Total Coverage, MAT 11.09.2021}

^{4 Kantar Worldpanel; Total Trade; 2021}

^{5 CGA Brand Index 17.07.21}

^{6 Nielsen Answers | Total Coverage| Total NABLAB Beer | YTD WE 11.09.21}

^{7 GB Total Coverage – Latest year to date WE 30 October 2021}