Vodka Top White Spirit in UK, Reports Mintel

June 9, 2009

Latest research from Mintel finds Britain's thirst for vodka remains unabated, with sales set to reach almost £2bn by 2013.

The research company reports that over the last five years, sales of the nation's favourite white spirit have grown 23% in volume to 79m litres in 2008. Value sales are up by 20%, reaching almost £1.9bn in 2008.

Today, more than a third (35%) of Britain's drinkers enjoy a glass of vodka, says Mintel. And, while competitors such as gin and tequila offer the greatest competition to vodka, sales of these alternative spirits lag behind.

According to Mintel, the gin market is worth £666m and has grown by just 2% over the same five-year period.

Overall, the market for all alcoholic drinks grew by 3.5% between 2003 and 2008.

“Vodka leads spirit sales and growth in the UK, pushing aside the recession and overall falling alcohol consumption. Strong appeal among young drinkers and both budget and premium growth is keeping the category buoyant during the economic downturn,” said Michelle Strutton, senior consumer analyst.

“Vodka has done particularly well at keeping the category contemporary and exciting. Whilst gin, its closest white spirit competitor, has introduced few new products in the past few years, there has been a flurry of activity from vodka manufacturers,” Strutton said.

According to Mintel, almost a quarter of 18-24 year-olds drinks vodka and they are most likely to drink cocktails and flavoured neat vodka. One in 10 of these younger drinkers believe that high alcohol content is the sign of good quality vodka and they are prepared to pay more for premium vodka.

Mintel reports that a move to premium products has boosted vodka sales in more recent years, albeit from a lower volume base.

While premium vodka accounts for just 5% of the total market by volume, sales of premium vodka, including flavoured, have grown by as much as 40% in the last two years.

Flavoured vodka makes up a fifth of premium sales, while super- and ultra-premium vodka represents less than 1% of the total market, appealing more to connoisseurs.

“As vodka has moved upmarket, a shift, albeit niche, has occurred from consumption via shots or with mixers such as coke or Red Bull to more sophisticated cocktails and long serves,” said Strutton.