Cider - UK - February 2021

OVERVIEW
Key issues covered in this Report
Economic and other assumptions
Products covered in this Report
EXECUTIVE SUMMARY
Impact of COVID-19 on cider
Figure 1: Short-, medium- and long-term impact of COVID-19 on cider, February 2021
The market
Value and volume sales fall in 2020 as on-trade feels the effects of COVID-19
Figure 2: Forecast of UK value sales of cider, 2015-25
The market will rapidly return to pre-COVID-19 levels
On-trade cider sales hit during COVID-19 outbreak; retail sales benefit from on-trade collapse
Health concerns curb alcohol consumption; demographic changes bring mixed news to the market
Companies and brands
Strongbow leads sales in a resurgent market
Figure 3: Leading brands’ share in the UK retail cider and perry market, 2019/20* 
Rosé trend continues
Flavour NPD spans confectionery, lemon and seasonal
Thatchers focuses on family in advertising; Strongbow on bringing people together
The consumer
53% drink cider
Figure 4: Usage of cider, October 2020
Unique flavours offer a way for brands to extend into new areas
Figure 5: Interest in cider concepts, October 2020
59% would like to know more about how cider is made; 56% interested in food pairings
Figure 6: Behaviours relating to cider, October 2020
Cider makers should continue to push Britishness
Figure 7: Attitudes towards cider, October 2020
Cider is seen to be the most refreshing drink
Figure 8: Correspondence analysis: qualities associated with different alcoholic drinks, October 2020
ISSUES AND INSIGHTS
Health becomes more of a priority in the wake of the pandemic
Cider makers should push Britishness
Unique flavours offer a way for brands to extend into new areas
Openness to DTC delivery from local brewers  
THE MARKET – KEY TAKEAWAYS
Value and volume sales fall in 2020 as on-trade feels the effects of COVID-19
The market will rapidly return to pre-COVID-19 levels 
On-trade cider sales hit during COVID-19 outbreak; retail sales benefit from on-trade collapse
Health concerns curb alcohol consumption; demographic changes bring mixed news to the market 
MARKET SIZE AND FORECAST
Impact of COVID-19 on cider
Figure 9: Short-, medium- and long-term impact of COVID-19 on cider, February 2021
Value and volume sales fall in 2020 as on-trade feels the effects of COVID-19
Figure 10: Total value and volume sales of cider, 2015-25
The market will rapidly return to pre-COVID-19 levels 
Figure 11: Forecast of UK value sales of cider, 2015-25
Figure 12: Forecast of UK volume sales of cider, 2015-25
Market drivers and assumptions
Figure 13: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 23 February 2021)
Learnings from the last recession
Figure 14: Value and volume sales of cider, 2007-12
Forecast methodology
CHANNELS TO MARKET
On-trade cider sales hit during COVID-19 outbreak
Retail sales benefit from on-trade collapse
Figure 15: Value and volume sales of cider in the off- and on-trade, 2015-20
MARKET DRIVERS
COVID-19 pandemic hits the on-trade
Government initiatives aim to support hospitality industry
Health concerns affect alcohol consumption
Focus on health and saving money likely to increase
Government plans calorie labelling consultation for alcohol
Figure 16: Strongbow introduces nutritional labelling on-pack, 2019
Numerous factors influence prices
Duties untouched
Figure 17: UK excise duty rates for cider, 2010-19
Brexit has a limited impact on prices
Minimum unit price introduced in Wales in March 2020
Majority describe their financial situation as healthy or OK
Ageing population and drop in the young threaten the market
Figure 18: Trends in the age structure of the UK population, 2015-20 and 2020-25
COMPANIES AND BRANDS – KEY TAKEAWAYS
Strongbow leads sales in a resurgent market 
Rosé trend continues 
Flavour NPD spans confectionery, lemon and seasonal
Thatchers focuses on family in advertising; Strongbow on bringing people together
MARKET SHARE
Strongbow leads sales in a resurgent market, its rosé variant helping 
Figure 19: Leading brands’ sales and share in the UK retail cider and perry market, 2017/18-2019/20  
Kopparberg benefits from flavoured cider trend but Rekorderlig falters
Thatchers and Westons prove there’s room for traditional brands 
Heineken leads, holding a third of the market 
Figure 20: Leading brand owners’ sales and share in the UK retail cider and perry market, 2017/18-2019/20  
LAUNCH ACTIVITY AND INNOVATION
Strongbow taps into pink trend with rosé cider launch…
Figure 21: Strongbow launches rosé cider, 2020
…and has a makeover 
Westons launches new products, including a Vintage Rosé variant
New flavours create a sense of newness 
Brothers looks to confectionery flavours
Thatchers moves into flavoured cider with Cloudy Lemon product 
Figure 22: Thatchers moves into flavoured cider with Cloudy Lemon launch, 2020
Seasonal variants are still popular in cider 
Figure 23: Seasonal NPD in cider, 2020/21
Kopparberg moves into seltzers, an example of extending the brand and targeting the health-conscious 
Figure 24: Kopparberg moves into hard seltzers, 2020
Other health-oriented launches
Figure 25: NPD featuring a healthier positioning in cider, 2020
Call for more low/no-alcohol ciders 
Figure 26: Strongbow unveils low-alcohol cider, 2020
Recent launches reference provenance and craft cues
Figure 27: NPD referencing provenance/production methods, 2019/20
The environment is still a focus of NPD
ADVERTISING AND MARKETING ACTIVITY
Advertisers cut back dramatically in 2020
Figure 28: Total above-the-line, online display and direct mail advertising expenditure on cider, by media type, 2019 and 2020
Thatchers celebrates family life with new ad 
Figure 29: Total above-the-line, online display and direct mail advertising expenditure on cider, by top advertisers (sorted by total), 2019 and 2020
Strongbow looks to bring people together 
Kopparberg invests in supporting its new seltzers 
Nielsen Ad Intel coverage
THE CONSUMER – KEY TAKEAWAYS
Drinking in the home becomes more prevalent 
Health becomes more of a priority in the wake of the pandemic
53% drink cider
Britishness appeals to cider drinkers 
Unique flavours offer a way for brands to extend into new areas
IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR
Drinking in the home becomes more prevalent 
Figure 30: Spending on alcoholic drinks – for drinking at home, surveyed 4-12 February 2021
On-trade closures see many cider occasions lost
Boom in online sales as people look to reduce time in-store 
Health becomes more of a priority in the wake of the pandemic
Negative economic impact on younger people
Britishness becomes more of a selling point 
Opportunities to push food/cider pairings, with 56% interested 
USAGE OF CIDER
53% drink cider
Apple is the most popular variant; fruit versions appeal more to women than men
Figure 31: Types of cider drunk, October 2020
Cider drinkers have a narrow repertoire; younger more experimental
Figure 32: Repertoire of usage of cider, October 2020
Standard cider is the most popular variant 
Figure 33: Usage of different types of cider, October 2020
37% drink cider once a week or more 
Figure 34: Frequency of drinking cider, October 2020
INTEREST IN CIDER CONCEPTS
Unique flavours offer a way for brands to extend into new areas
Smaller formats encourage trial
Figure 35: Interest in cider concepts, October 2020
Seltzers and lower-calorie versions also provide opportunities for brand extensions
Barrel-aged cider poses a way to appeal to older drinkers
Online sessions offer a way for brands to reach cider drinkers
CIDER BEHAVIOURS
Information on how cider is made would appeal to 59% 
Figure 36: Behaviours relating to cider, October 2020
Opportunities to push food/cider pairings, with 56% interested 
Figure 37: Aspall calls out food pairings on-pack, 2020
Healthier versions of cider appeal, especially to women 
Low-sugar and low-calorie cider interests minority 
Call for more low/no-alcohol versions 
Ingredients come under scrutiny
ATTITUDES TOWARDS CIDER  
Cider makers should push Britishness
Interest in cider from different countries
Figure 38: Attitudes towards cider, October 2020
Openness to DTC delivery from local brewers…
…and subscription models
QUALITIES ASSOCIATED WITH ALCOHOLIC DRINKS 
Cider is seen to be the most refreshing drink
A third of adults see cider as good for relaxing with
Just 11% say cider is too sweet
Figure 39: Correspondence analysis: qualities associated with different alcoholic drinks, October 2020
Figure 40: Qualities associated with different alcoholic drinks, October 2020
Methodology
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology