No and low alcohol category set to grow in Australia

Drinks suppliers and operators have a great opportunity to drive sales of no and low alcohol drinks in Australia’s On Premise, new research from CGA shows.


It indicates that Australia has moved ahead of the global curve in the adoption of no and low alcohol beer, cocktails, wines and spirits, with one in ten (10%) consumers choosing one while out since the start of the COVID-19 pandemic.


In a sign that the crisis has focused many consumers’ minds on health and alcohol consumption, one in four (25%) of these drinkers say they are drinking no and low alternatives more often than they did before COVID-19. Only 15% say they never drink alcohol in the On Premise, which suggests the category’s rise is being powered by consumers moderating their alcohol intake, rather than abstaining completely.


CGA’s new research shows drinkers of no and low alternatives are looking for high quality and are keen to experiment with new options. Two in five (40%) strongly agree that they typically drink high quality and expensive drinks—six percentage points higher than the all-Australia average. Well over half (56%) agree they like to experiment with new flavours or varieties of drinks—a major over-indexing of 13 percentage points.


CGA’s study also highlights the close correlation between On and Off Premise drinking habits. More than two in five (42%) no and low drinkers say their purchasing choices at home are influenced by their drinking-out occasions, making the On Premise a crucial incubator for all drinks brands.


However, the category isn’t yet as visible in Australia as it could be. Only three in ten (29%) consumers say they have seen the no and low alcohol beer trend in pubs and restaurants—seven percentage points below the global average.


Graeme Loudon, CGA’s managing director, EMEA & APAC, says:

As attitudes towards alcohol consumption in Australia change, the no and low category is primed for some significant growth in the years ahead. Brands that can show their quality credentials, find the right price point, make themselves visible in bars and restaurants and tap into the desire for new experiences have an excellent chance to position themselves at the leading edge of this movement—not just in the On Premise but right across retail.”

CGA’s OPUS research in Australia is based on a survey of around 3,000 nationally representative consumers. It has many more insights into the no and low alcohol trend, including important analysis of drinkers’ demographics and behaviours.


Click here to download a free report which features key consumer insights into low and no alcohol drinks, and how the Australian market compares to the global average in the adoption of this category.

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