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Expenditure on alcohol and tobacco in the United Kingdom Q1 2012- Q3 2020

2017 and 2020 have seen an increase in consumer spending on alcohol and tobacco. In the third quarter of 2020, consumer spending on alcoholic beverages and tobacco reached 11.8 billion British pounds in the third quarter of 2020, down from 12.4 billion the previous quarter.

Alcohol and tobacco market in the UK

While expenditure in 2017 and 2018 was up, the sales volume in the category was down. Compared to August 2016, sales volumes in August 2017 were down 27 percent. Month by month comparisons show lower sales starting in February 2017 and continuing into the summer of 2019. These developments in expenditure and sales volume were accompanied by a price hike starting in January 2017. The general upward trend in prices was still unbroken at the start of 2019.

Impacts

Household expenditure for tobacco and alcohol products puts lower income households under a much greater strain than high income households. On average, 3.3 percent of household income in the poorest ten percent of households is spent on these products. With an increased spending for lower volumes, this strain is increasing too.

Consumer spending on alcoholic beverages and tobacco in the United Kingdom from the 1st quarter of 2012 to the 3rd quarter of 2020 (in million GBP)*

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Source

Release date

January 2021

Region

United Kingdom

Survey time period

Q1 2012 to Q3 2020

Supplementary notes

* Household final consumption expenditure. Figures based on current prices and are seasonally adjusted.

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* Prices do not include sales tax.

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