A recent industry webinar, put the spotlight on the big trends of moderation in the GB on-trade. Drawing on the latest consumer insights and market data, the big questions around changing behaviours, the rise of no/low alcohol alternative and the evolving role of functional and ready-to-drink formats were captured and discussed.
Offering a timely look at how mindful consumption is influencing pubs, bars, and restaurants—especially as the festive season approaches, we reveal the big questions and big opportunities.
Moderation in the On-Trade: A Shift in Intentions
Q: How is the trend of moderation reflected in pubs, bars and restaurants?
A: Moderation is certainly having an impact on the on-trade. While footfall into pubs and restaurants has rebounded—up 21% year-on-year in the first half—we’re not seeing alcohol volumes recover at the same pace. Consumers are buying fewer drinks overall, driven by a mix of motivations: about a third moderate for health reasons, another third to save money, and many are choosing to drink less but better, prioritising quality over quantity.
Interestingly, younger consumers aren’t necessarily the main driver of moderation—they only marginally over-index by 1 percentage point. However, they are moderating differently. Gen Z and millennials exemplify a more deliberate and purposeful approach to alcohol consumption, often reducing intake rather than abstaining completely. In fact, 1 in 4 moderating Gen Zs say they only drink alcohol during on-trade occasions, which are often seen as moments of indulgence, connection, and celebration.
Despite moderating, younger generations remain the most active and highest-spending group in the on-trade. They go out more frequently and spend more when they do, making them essential for brand recruitment and engagement—across both alcoholic and non-alcoholic categories.
The Rise of No/Low: Small but Growing
Q: How are non-alcoholic alternatives performing in the on-trade? Where do you see the opportunity?
A: Non-alcoholic alternatives are still a relatively small part of the on-trade, but they’re growing fast. No/low alcohol beer currently makes up less than 2% of total beer sales, and non-alcoholic spirits sit at just 0.4%. That said, 20% of consumers say they choose no/low options when moderating, and we’re seeing strong momentum behind the category.
Soft drinks remain the top choice when moderating—39% of consumers opt for one. But non-alcoholic cocktails are gaining traction, especially among those who typically enjoy spirits or mixed drinks. In fact, 69% of cocktail drinkers also consume non-alcoholic cocktails, showing clear crossover potential.
We’re also seeing more nuanced behaviour like “zebra striping”—alternating between alcoholic and non-alcoholic options. 26% of consumers alternate alcohol with water, while 19% alternate with no/low drinks. This isn’t just about moderation—it’s also about elongating sessions and maintaining control, allowing consumers to pace themselves without stepping away from the occasion.
Encouragingly, just under a third of Gen Z and millennial consumers expect to increase their frequency of no/low purchases in the next 12 months. And operators are responding: 58% plan to expand their range of no/low beer and cider, while 33% are looking to grow their no/low spirits offering.
One important watch-out is that our research shows the non-alcoholic category currently scores among the lowest in consumer perception when it comes to value for money, quality of serve, and overall excitement. That means the key to success lies in offering alternatives that feel just as rewarding, special, and socially engaging as traditional alcoholic options—experiences that deliver on both taste and occasion.
RTDs: Convenience Meets Control
Q: What’s the verdict on RTDs’ role in moderation? Can they play a role?
A: RTDs can absolutely support moderation, especially when we look beyond the high-ABV, bartender-style cocktail variants. Many RTDs are formulated with lower alcohol by volume, which directly supports mindful consumption. They also offer portion control, with a consistent, fixed measure per serve that makes it easier for consumers to track and manage their intake.
One of the biggest advantages of RTDs is ABV transparency. Unlike traditional spirits—where alcohol content is often high and not front-of-mind, especially when mixed into cocktails—RTDs typically display ABV clearly on the packaging. That removes the guesswork around how strong a drink might be and helps consumers make more informed choices.
So RTDs aren’t just convenient—they can act as a strategic tool for moderation, helping consumers stay in control, elongate their sessions, and enjoy the occasion without overcommitting.
Functional Drinks: A New Kind of Escape
Q: We’ve seen a great deal of innovation around functional drinks. How are consumers using functional to moderate—or are they looking for something else from the drink?
A: Functional drinks are still a very small part of the on-trade, currently making up just 0.1% of total soft drink sales. But the opportunity is significant. With health being the number one reason consumers choose to moderate, it stands to reason that many will seek out healthier alternatives when they go out to eat or drink.
Mission and occasion play a big role. The greatest potential may lie in more routine-led on-trade visits, where consumers are looking for balance rather than indulgence. But beyond treat and reward, the on-trade is also a space where people go to switch off, relax, and escape the stresses of everyday life. It’s a place to disconnect as much as it is to connect—and we’re seeing a rise in venues offering guests the chance to lock away their smartphones to fully embrace that experience.
That makes the environment well-suited for functional drinks that support those need states—whether it’s relaxation, focus, or mood enhancement. So while functional isn’t yet a mainstream moderation tool in the on-trade, it’s increasingly aligned with how consumers want to feel when they’re out—and that’s where the real opportunity lies.
Festive Moderation: Value, Visibility, and Trial
Q: With Christmas on the horizon, how do we think the growing role of moderation will play out in the on-trade?
A: Christmas is traditionally a time of treat and indulgence, but moderation is increasingly shaping how consumers engage with the on-trade during the festive season. Around 30% of consumers say they moderate their alcohol intake to save money, and 57% report being moderately or severely impacted by the rising cost of living. That means every drink—alcoholic or non-alcoholic—needs to feel worth the spend. Value for money, quality of serve, and overall experience are critical.
Importantly, Christmas is also a key moment for trial. Consumers are more open to experimenting with new drinks, making visibility and disrupting the path to purchase essential for brands. For designated drivers and those choosing not to drink, it’s a prime opportunity to offer alternatives that feel indulgent and celebratory—not just a glass of water. Recruiting into the no/low category during this time is about delivering options that are rewarding, festive, and socially engaging.
So while moderation may shift consumption patterns, it also opens the door for brands to connect with consumers through elevated experiences and intentional choices.
NIQ’s consumer research and On Premise measurement solutions provide many more insights into the behaviours and preferences of moderating consumers, with in-depth analysis of occasions, channels, categories and much more. To learn how the research can help brands meet the needs of drinkers around the world, and how insights can be tailored to the needs of specific portfolios, get in touch with the CGA by NIQ team.
For an EMEA wide view of moderation, click here
