 | E-Malt.com News article: UK: Alcohol free beer to be tracked for inflation for the first time
Alcohol free beer will be tracked for inflation in the UK for the first time after the Office for National Statistics added the product to its 2026 consumer price inflation basket, The Drinks Business reported on March 17.
According to the ONS, 27 items have been added to the Consumer Prices Index, including owner occupiers’ housing costs basket this year, while 19 items have been removed, bringing the total number of representative items to 760.
Among the additions are hummus, motorhomes, pet grooming services, dashboard cameras and alcohol-free beer.
The ONS explained that alcohol free beer has been included to reflect a part of the beer market that had not previously been directly represented in the basket. The product will contribute to a broader “beer, low and non alcoholic” consumption segment when inflation statistics are compiled.
Sales of alcohol-free beer have grown in recent years alongside a widening product range and greater shelf space in retail. The agency stated that adding the item helps ensure that price indices remain representative of current spending patterns.
The consumer price inflation basket functions as a model “shopping basket” of goods and services bought by households. Movements in the cost of this basket represent changes in inflation.
Within any given year, the basket remains fixed so that measured changes reflect price movements rather than shifts in quality or quantity. The composition of the basket itself is revised annually to capture evolving consumption patterns, according to the ONS.
The inclusion of alcohol-free beer also arrives at a time when consumer drinking habits appear to be shifting. Research commissioned by consumer trends platform Attest found that 31% of consumers say they are moderating their drinking rather than giving it up entirely. By contrast, 27% report going fully dry.
Financial pressures appear to be part of the picture; according to Attest’s data, 47.5% of respondents say they are cutting back on alcohol consumption to save money.
The same research suggests temporary abstinence campaigns are also having longer-term effects. Nearly nine in ten respondents say Dry January could influence their drinking for the rest of the year, with 41.8% saying it will and a further 45% saying it potentially could. The shift is particularly evident among younger adults who are increasingly opting for low and no alcohol alternatives.
Speaking to the drinks business Sam Killip, head of insights at Attest said: “With UK alcohol duty having recently risen, alcohol-free alternatives also offer a compelling middle ground, reinforcing both health-conscious and cost-conscious behaviours. The more visible and accessible these choices become, the more deeply moderation is likely to embed itself into everyday drinking culture.”
She continued: “Attest’s data shows people are gravitating toward cafés (44%) and at home (69%) as opposed to pubs, reaching for tea, coffee, and other non-alcoholic options. Wider trends, including the rise of matcha and speciality teas, point to a generation reshaping sociability around lifestyle, not alcohol. For drinks brands, this is an open brief: low and no alcohol beverages, functional drinks, and wellness-focused innovations all have room to grow where health and cost are the dominant motivators. Venues that position themselves as social destinations beyond drinking, rather than waiting for the shift to fully arrive, are best placed to build lasting loyalty well beyond the seasonal surge of Dry January.”
While alcohol free beer has entered the basket, another alcohol category has been removed from inflation tracking. The ONS confirmed that bottled premium lager purchased in pubs and restaurants has been taken out of the basket as part of efforts to balance the overall number of items measured. The agency said other alcohol products remain sufficient to represent price movements in that category.
Restaurants and hotels account for around 11% of the CPIH basket weighting as per ONS data, indicating the continuing significance of hospitality spending within the wider inflation measure. The annual revision process draws on multiple sources, including the Living Costs and Food Survey, market research, trade journals and press coverage.
The 2026 update also introduces grocery scanner data into the consumer price statistics for the first time. According to the ONS, this data will cover roughly half of the grocery market, while the remainder will continue to rely on in-store and online price collection. Scanner data offers broader product and geographical coverage as well as improved visibility of price changes within a month. It also captures a wider range of discounts and provides more detailed expenditure data, as reported by the ONS.
The first inflation figures incorporating the revised basket will be published on 25 March 2026.
17 March, 2026
|
|