Study finds price is biggest pressure on alcohol sales
A new study by MMR Research has found that nearly four in ten UK consumers (39%) say they are lowering their alcohol consumption because of affordability.
This puts price significantly above health and fitness (22%) or wellbeing (14%) as reasons given for cutting back.
Over the next year, only 16% of respondents were expecting to increase their alcohol consumption.
Andrew Wardlaw, chief ideas officer at MMR Research, noted that the shift in consumer behaviour is complex, with these reasons reflecting broader structural changes.
He explained: “Across the board, we are seeing people becoming more purposeful and deliberate with their spending – and that intentionality only ramps up when purse strings are tight.
“So, if an alcohol product doesn’t meet a particular need in their life, consumers are far less likely to see it as worth paying for.”
MMR Research added that there is an ongoing change in how people spend their free time, with increasing numbers of people deciding to enjoy themselves online, rather than through face-to-face activities.
This shift in behaviour has a knock-on effect on alcohol sales – as Wardlaw put it: “Asahi hit the nail on the head when it recognised that the gaming industry was its biggest competitor.
“We can no longer assume alcohol’s place at the centre of social occasions.
“Ritual and habit just aren’t as powerful anymore and, as consumers spend in a more considered way, brands must up their game.”
He suggested that one way to do this is marketing alcohol as an experience to tap into a “culture of exploration” introduced by TikTok (especially in the younger generation) and get people to part with their cash.
MMR Research found that novelty does fuel consumer excitement in the alcohol category, with people looking for uncommon flavours, formats or collaborations, citing White Claw’s Surf flavours as an interesting example.
Wardlaw concluded that “this isn’t a dead end for alcohol, but this is about reimagining its relevance in consumers’ lives.
“Alcohol brands need to reflect the purpose behind people’s drinking, creating sips that shift mood, deliver new experiences or enable self-expression”.
More information about the study, which took place in September 2025, can be found by listening to the ‘What’s next for alcohol?’ episode of the Impact Makers podcast by MMR Research here.
Image Credit - Sam McGowan on Pixabay
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