So-called “nolo” drinks have been tipped to be the UK’s biggest trend for 2020, according to a report, driven by 18-24 year-olds drinking less alcohol or switching to no or low-alcohol substitutes.

The annual British craft beer report, due to be published by small brewers’ trade body the Society of Independent Brewers (Siba) on Thursday, will reveal that one in three young adults have cut down on their alcohol consumption while a record 23% are now teetotal.

The popularity of the burgeoning sector – set to be one of the fastest growing parts of the beer market this year in the quest to satisfy the thirst for nights out without a hangover – has toppled craft beer from the top slot where it has reigned for the past five years.

In the UK consumers drink around 8 billion pints every year, yet only 7% of all the beer drunk is from small independent craft brewers, of whom 750 are members of Siba.

The report said there has been a 30% leap in sales of no or low-alcohol beers since 2016, with consumers increasingly expecting to have a wider range in pubs and bars. A separate study by Euromonitor has shown that the UK market for no and low-alcohol beer has doubled in four years, with sales of £63m estimated for 2020.

“Low or no-alcohol beers have never been better and some of the best examples are made by small independent breweries,” said Neil Walker, spokesman for Siba. “It’s a trend that shows no signs of wavering and means that people who choose not to drink, are driving or just want to cut down, now have plenty of tasty options.”

London-based alcohol-free craft brewer Big Drop, for example, is enjoying bumper growth with a range of beers that includes lager, pale ale and IPA. These have less than 0.5% alcohol by volume (abv) and so can legally be sold in the UK as alcohol-free. Its dark stout (0.5% abv) won gold at the International Beer Challenge, beating its full-strength rivals. Similarly, Brewdog has enjoyed success with its low-alcohol Nanny State pale ale.

The Small Beer Beer Brew Co, which specialises in classic beer styles below 2.8% abv, is now selling Small Beers on draught at a quarter of all Fuller’s pubs in the UK. Sales tripled in January compared with last year following “dry January” and are continuing strong growth into March.

The brewer’s co-founder James Grundy said: “We know people enjoy walking through their front doors and transitioning from work to home with the opening of a beer, but now people want that without the cloudy-headed morning after, as that slowdown is no longer a desirable part of people’s lifestyles.”

Craft beer has been toppled from the consumer top slot, but craft brewers are now tapping into the no and low-alcohol market. Photograph: Randy Duchaine/Alamy

While craft and small-scale brewers are tapping into this market, the world’s biggest brewers and drinks makers have been quick to spot the opportunity. Johnnie Walker-owner Diageo has made a splash with its non-alcoholic spirit Seedlip while Budweiser owner Anheuser-Busch InBev and Heineken have launched dozens of no and low-alcohol beers.

Siba has confirmed that this year’s BeerX event in Liverpool – expected to attract more than 2,000 visitors over Wednesday and Thursday – will go ahead as planned despite worries about coronavirus. However, it is imposing a ban on handshakes and sharing beer glasses.