Millennials are fuelling a rise in low or no-alcohol beverages this summer as drinks giants try to match modern habits.

Drinking rates among adults in the UK are already at their lowest point since 2005, and the change is particularly prevalent among millennials, with more than a quarter of 16-to-24-year-olds going without alcohol.

Diageo launched a ready-mixed gin and tonic made with less than 0.5 per cent alcohol last week, the first in their range to be labelled 'ultra-low alcohol'.

Miles Beale, chief executive of the Wine and Spirit Trade Association, told the Guardian: 'Low- and no-alcohol drinks represent a relatively small part of the entire market, but demand is increasing every year.

Millennials are fuelling a rise in low or no-alcohol beverages this summer as drinks giants try to match modern habits. More than a quarter of 16-to-24-year-olds do not drink

'The low-alcohol wine category has increased 10 times since 2009 to around 3% of the market – that's more than 37 million bottles, worth over £70m.

'Producers are responding to consumer demand for products that fit changing lifestyle habits – we know that overall alcohol consumption is decreasing, particularly among young people – with innovative new products that are lower in alcohol.'

Diageo's low alcohol drink was launched after research revealed there are not enough alcohol-free options and that soft drink alternatives are too sweet.

Supermarkets have reported a rise in sales, with 27 per cent of Britons saying they are drinking more low-alcohol drinks now than compared to a few years ago.

April Rogers, a wine buyer for Asda, said: 'The low- and no-alcohol market continues to grow, with everything from sparkling, red and white wines, [to] beer increasing in popularity.'