Majority Of Beer Consumption Expected To Be Premium Or Super-Premium By 2025

Budweiser Brewing Group, the owner of brands including Budweiser, Stella Artois and Corona, is predicting that by 2025, 70% of total beer consumption will be of brands in the premium or super-premium category.

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

AB InBev’s UK & Ireland subsidiary believes that the 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 £0.5bn since 2017. The segment is said to present a unique sales opportunity for retailers with two-thirds of World Beer spend coming from shoppers with two or more beers in their repertoire. The popularity of the segment is evident through the UK’s leading World Beer, Corona, which saw its rate-of-sale grow 25% last year.

Budweiser Brewing Group has also seen the trend towards premiumisation replicated in the no-and-low category. This category grew 23% year-on-year as consumers sought to treat themselves whilst moderating their alcohol consumption. Brand was found to be the most important factor for consumers when deciding which no-and-low product to buy - ahead of calories, ingredients, taste claim and ABV, highlighting the opportunity around premium no-and-low options. The company highlighted that its Budweiser Zero and Stella Artois Alcohol Free variants have built on the success of their parent brands, growing ahead of the total no-and-low category and showing triple-digit growth across both volume and value.

“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.”

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