Brits spend £4.1bn drinking beer at home during cost of living and price of a pint crises
Brits are staying at home and cracking open cold beers from the fridge, as twin cost of living and price of a pint crises change drinkers’ habits.
New research out today show a 25 per cent surge in beer sales in supermarkets and shops outside local boozers, during the cost of living crisis.
While the nation continues to watch their pennies with inflation at 8.7 per cent, millions are still not willing to cut back on their weekly tipple.
Figures from price comparison site Idealo, based on numbers from the Office for National Statistics, showed Brits are spending £4.1bn per year on beer, 25 per cent more than in 2020.
With the price of a pint in the capital costing upwards of £7, drinking at home serves as a cheaper alternative.
Supermarkets have also cashed in on trend, with a four pack of San Miguel beer costing just £5 in Tesco, and a four pack of draft Guinness stout just £4.75.
Boozers have been forced to up prices in recent months due to higher energy costs and price pressure in the supply chain.
“The rising cost of living is making people less willing to go out drinking, but more willing to treat themselves to a bottle of wine or beer during their weekly shop,” analysts from Idealo said.
Inflation remains at a sticky 8.7 per cent, and while grocers report that food inflation is coming down many households are yet to feel alleviated from financial pressures.
However, a phenomenon coined as the ‘lipstick effect’ shows that in times of financial crisis, customers tend to spend more money on small luxuries such as cosmetics or booze.
In addition to alcohol, spending on chocolate has increased by 15 per cent over the past few years, rising from £3.2bn in 2020 to an expected average of £3.5bn per year in 2023.
The figures will pile on misery for pubs, after report in April showed pubs are vanishing from communities across England and Wales amid soaring energy and food prices.
Analysis of government data conducted by real estate advisor Altus Group shows that the number of public houses shutting up shop leapt to 51 a month in the first financial quarter of 2023.