Alcohol consumption per capita

IBISWorld estimates that the average alcohol consumption per person for each week is forecast to expand at a compound annual rate of 2.7% over the five years through 2025, reaching an average of 13.2 units per week per person. Alcohol consumption trends among UK consumers have exhibited a downward trend over the past two decades. A wide range of factors, including price, income levels, taxation, advertising restrictions, minimum age requirements, age, religion and other social factors, influences the demand for alcohol. However, consumption has risen in the short term following a substancial dip during the pandemic.

In the early part of the period, rising health consciousness encouraged many consumers to limit the volume of alcohol consumed each week. Since then, there has been a general reduction in the amount of wine, beer, spirits and ready-to-drink alcoholic beverages consumed. This trend is driven by changing consumer attitudes towards alcohol, an ageing population and the popularity of non-alcoholic beverages.

Alcohol is a normal good. Lower levels of household disposable income decrease the number of money drinkers have to spend on alcohol and, therefore, the amount of alcohol consumed. Lower growth in disposable incomes over the past five years has contributed to an overall decline in alcohol consumption. Constrained disposable income has also reduced the number of times alcohol is consumed weekly by adults in the United Kingdom. Rising alcohol duties have also increased prices over the past five years, driving consumers away from alcohol.

Over 2020-21, a reduction in household income reduced overall alcohol consumption. The COVID-19 (coronavirus) outbreak, which led to lockdown measures, initially increased alcohol sales as more people spent time at home, with a study by Kings College London stating that 29% of people have increased their level of alcohol consumption since the start of the pandemic. The volume of alcohol purchased out of home fell over 2020-21 in response to the intermittent closing of food service and hospitality industries over the year. Lockdown measures were eased over 2021-22, leading to increased alcohol consumption from sales in pubs, bars and restaurants.