2: UK Alcohol sales and consumption

GVA Fact Sheets: Overview; 1: Alcohol and society issues; 2: UK Alcoholsales and consumption; 3: Health Aspects; 4: Excise tax on Gin and Vodka; 5: The UK white spirits market; 6: Exports and Imports; 7: Spirits Ready-To-Drink beverages (RTDS); 8: Cumulative burden of taxation, regulation and extra costs; 9: European fiscal issues; 10: Environmental, employment & rural issues; 11: The gin and vodka industry in scotland; 12: World Gin industry; 13: London Gin

Downturn in consumption

It is important to look at alcohol sales and consumption because a number of reports have recently highlighted the growth in alcohol sales in the 1990s but have failed to mention of the more recent downward indications. We will return to this point later when discussing the impact of tax and why alcohol receipts have declined.

Long Term Alcohol Consumption

Chart showing Alcohol Consumption in the UK 1900 - 2006

Medium Term Trends

A number of independent reports have also pointed to similar downward indications such as this one on Alcohol sales 1996-2006 from the International Wine & Spirit Record (IWSR). chart showing UK total wines, spirits, beers and ciders

chart showing UK total wines, spirits, beers and ciders

Chart showing UK - Litres Per Capita Consumption at 100% Alcohol

Alcohol consumption per capita

Due to changes in population, the consumption of alcohol is better measured per capita, as illustrated in the above graph from ACNielsen, which also shows the changes in market share. That said, given that alcohol, for the most part, is not consumed by those under the age of 16 years, alcohol consumption per adult can give an even more accurate measure as in the graph below from HMRC. The recent downward trend is evident in both Chart showing alcohol clearences per adult

Chart showing alcohol clearences per adult

Recent Trends. Decline in Consumption Volumes

Young people. Both Scottish and English surveys suggest that the proportion of young people who drank alcohol in the previous week is in decline (although the amount consumed by those who do drink has remained steady in recent years, having increased sharply in the 1990s) . Scottish Schools Adolescent Lifestyle and Substance Use Survey and the English equivalent - Smoking, Drinking and Drug Use among Young People in England, which is commissioned by the Information Centre.

People drinking more than daily benchmarks. The most recent General Household survey by the ONS has shown that the percentage has fallen over the most recent three years for men and women who have consumed more than daily or weekly benchmarks. These are illustrated below.
General Household Survey to 2006. Smoking and Drinking among Adults. Published by ONS. January 2008.

chart showing Figure 2.4 Percentage of men drinking more than 21 units a week, and women drinking more than 14 units a week: original method, 1998 to 2006

chart showing Figure 2.4 Percentage of men drinking more than 21 units a week, and women drinking more than 14 units a week: original method, 1998 to 2006

chart showing Average weekly alcohol units by sex: original method, 1998 to 2006

chart showing Figure 2.6 Percentage of men drinking more than 4 units a week, and women drinking more than 3 units a week: original method, 1998 to 2006

Other Related trends

There have also been small year-on-year changes that are significant when aggregated together. These include:

Shift from On-Trade to Off-Trade. A move away from pubs and clubs towards home consumption of approx. 2% per year
Change in drinking culture: move from spirits to wine. Coupled with the smoking ban, there has been a change in drinking habits and a general shift towards wine. Over the last 25 years, beer's market share has reduced from 65% to 43% and Spirits from 24% to 20% while wine increased from 14% to 29%. As with other foods and drinks, moving up market ('premiumisation') is also a common theme.
RTDs. The decline of Ready To Drink beverages (also called Alcopops)