Noah Vinter
Alcohol consumption trends vary across the globe, with some consumers reporting increased drinking during the COVID-19 pandemic, while others experienced a decrease. The pandemic accelerated existing trends, such as the growth of e-commerce, premiumisation, at-home drinking, and the preference for purchasing larger quantities. In 2025, the global drinks industry is expected to face economic uncertainty, with consumers in mature markets like the US and Europe experiencing pressure from high inflation rates. However, emerging economies like India, South Africa, and Southeast Asian countries are showing a preference for premium products and a willingness to explore new drinking occasions. Temporary abstinence is also gaining momentum, especially among younger LDA+ consumers in India, South Africa, Mexico, and Brazil. The harmful use of alcohol has serious health consequences, with an estimated 400 million people aged 15 and older living with alcohol use disorders globally in 2019.
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What You'll Learn
- Alcohol abstinence is gaining momentum, especially among younger LDA+ consumers
- People are drinking less, but more frequently
- E-commerce and at-home drinking activities are growing
- People are opting for premium and innovative products
- Alcohol is linked to over 200 diseases, injuries and health conditions
Alcohol abstinence is gaining momentum, especially among younger LDA+ consumers
In terms of global trends, the share of adults who have not drunk in the past year or have never drunk alcohol is notably high in North Africa and the Middle East. In most countries in this region, the majority of adults have never consumed alcohol. Additionally, Japan displays the highest level of abstention among Gen Z consumers, with 63% claiming to have not drunk alcohol in the past six months, followed by the US at 54% and Canada at 44%.
The preference for abstinence among younger LDA+ consumers is also reflected in their drinking habits when they do choose to consume alcohol. Consumers are increasingly opting for lighter consumption, with a significant increase in the proportion of 'light' drinkers, and limiting themselves to a single type of beverage on any given occasion, thereby reducing their overall alcohol intake. This trend towards moderation is evident across all age groups but is more prominent among younger consumers. For instance, 75% of Gen Z consumers reported moderating their alcohol intake over the past six months, compared to 74% of Millennials and 66% of Gen X.
While younger LDA+ consumers are exercising greater control over their alcohol intake, they are also driving growth in the beverage alcohol market. In key markets such as the US, UK, India, and Australia, participation rates among Gen Z consumers have increased significantly. This growth is accompanied by a willingness to explore a wide array of drink categories and a preference for cocktails and premium beverages. The propensity to go out and spend more on alcohol is particularly strong among Millennials in the US, benefiting the sales of Scotch whisky, liqueurs, and sparkling wine.
Overall, the trend towards alcohol abstinence among younger LDA+ consumers is gaining traction globally. This shift is driven by health concerns, the desire for moderation, and the preference for premium and innovative products. The beverage alcohol industry is adapting to these trends by offering a wider range of no-alcohol and low-alcohol options, catering to the changing preferences of younger consumers.
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People are drinking less, but more frequently
While alcohol consumption has historically been associated with socialising and celebration, recent trends indicate a shift towards moderation and controlled intake. This shift is evident in the increasing popularity of low or non-alcoholic beverages, with consumers actively choosing to limit their alcohol consumption. This trend spans all age groups, regions, and demographics, indicating a cultural shift towards a more mindful approach to alcohol.
The global drinks industry is witnessing a rise in "temporary abstinence", particularly among younger LDA+ consumers. This trend is prominent in India, where 72% of affluent drinkers in major cities reported periods of abstinence. South Africa, Mexico, and Brazil also show similar patterns, with over half of their consumers practising temporary abstinence. This shift towards moderation is also reflected in the average number of beverage categories consumed per occasion, which decreased from 2.4 in 2023 to 1.8 in 2024 across 15 Bevtrac markets.
The COVID-19 pandemic significantly impacted traditional patterns of alcohol consumption. While some consumer groups increased their alcohol purchases and consumption, others exhibited a decrease. The pandemic accelerated existing trends, such as the growth of e-commerce and premiumisation, with consumers opting for larger pack sizes and at-home drinking activities. The long-term effects of these changes are yet to be fully understood.
Despite the overall trend towards moderation, there are cultural and regional variations in drinking patterns. For example, countries like France, Russia, South Korea, and Brazil have high levels of alcohol consumption, which negatively impacts life expectancy. Neighbourhood characteristics and opportunities for alcohol purchasing also influence consumption rates, with individuals in poorly built environments reporting higher rates of heavy drinking.
While the global trend shows a move towards moderation, certain demographics and regions exhibit unique drinking patterns. The reasons for these variations are multifaceted and influenced by a range of social, cultural, and economic factors. Understanding these factors is crucial for developing effective public health policies and interventions to address alcohol-related harm.
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E-commerce and at-home drinking activities are growing
The global e-commerce market for alcohol has witnessed a remarkable transformation, with the COVID-19 pandemic acting as a pivotal catalyst. The pandemic-induced lockdowns and social distancing norms prompted consumers to explore online options for alcohol purchases, accelerating the growth of e-commerce in this sector. According to a report by IWSR Drinks Market Analysis, the global e-commerce market for spirits and wine witnessed a notable increase of 42% to 43% from 2019 to 2020. This trend is expected to persist, with sales across ten major markets projected to surpass $24 billion.
The United States, in particular, has emerged as a prominent market for alcohol e-commerce, with a significant increase in consumer awareness about online alcohol sales. The relaxation of direct shipping laws in various states has further bolstered this trend. Notably, the US beverage alcohol market is anticipated to witness a compound annual growth of 66% between 2020 and 2024, outpacing the growth rates of spirits (47%) and wine (30%). The ready-to-drink canned cocktail segment is expected to be a significant contributor to this growth, projected to capture a 20% market share by 2024.
While the pandemic played a pivotal role in driving consumers towards online alcohol purchases, other factors also contributed to this shift. The convenience and ease of purchasing alcohol online, coupled with the ability to conduct extensive research before making a purchase, have been significant factors. The omnichannel approach, which provides a seamless customer experience across online and offline channels, has also contributed to the growth of alcohol e-commerce.
However, the journey of alcohol e-commerce, particularly in the United States, has not been without challenges. Historical tensions between alcohol and e-commerce in the US, stemming from post-Prohibition policies, have created a complex landscape of regulations and legal restraints. Each state has its own unique set of legal challenges, making it difficult for e-commerce providers to navigate and expand into the alcohol industry. Nevertheless, the growing consumer demand for at-home drinking experiences and the convenience of online purchases continue to drive the growth of alcohol e-commerce, with more companies investing in this sector.
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People are opting for premium and innovative products
The global drinks industry is experiencing a shift towards premium and innovative products, particularly in emerging economies such as India, South Africa, Southeast Asia, and Latin America. This trend is driven by younger consumers, expanding middle classes, and increased urbanization. The preference for premium options reflects a "less but better" mindset, where individuals opt for higher-quality, flavour-rich choices while drinking less frequently. This trend is evident across tequila, whiskey, and rum categories, with ultra-premium and super-premium options gaining popularity.
The "less but better" movement aligns with the growing importance of health and wellness among consumers, especially Gen Z and younger LDA+ individuals. This demographic values health, sustainability, and premium experiences, favoring alcohol-free options and functional beverages that offer additional wellness benefits, such as adaptogens, vitamins, and botanicals. The preference for low-ABV or non-alcoholic drinks underscores their interest in mindful consumption and wellness.
Millennials, comprising 32% of beverage alcohol buying households, also contribute to the premiumization trend. They prioritize quality and are willing to pay more for craft beverages, organic wines, and artisanal spirits. This willingness to invest in premium options is reflected in their propensity to consume Scotch whisky, liqueurs, and sparkling wine as their personal circumstances improve.
The trend towards premiumization is also influenced by the desire for innovative, eco-friendly packaging and authentic brand stories. Gen Z, which makes up 9% of beverage alcohol buying households, values authenticity, sustainability, and experiences over material goods. They are drawn to purpose-driven brands that align with their ethical and innovative lifestyles. Additionally, the integration of technology and digital engagement is reshaping the beverage industry, with social media platforms like Instagram, TikTok, and Pinterest playing a pivotal role in how consumers discover, interact with, and purchase alcohol brands.
The preference for premium and innovative products extends beyond the choice of alcohol and includes the consumption experience. Subscription services, virtual tastings, and the exploration of new drinking occasions and categories are gaining popularity. The beverage alcohol market is witnessing a revival in key countries, such as China, Germany, Italy, Mexico, the UK, and the US, driving optimism in the industry.
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Alcohol is linked to over 200 diseases, injuries and health conditions
Alcohol consumption is a global health issue, with a recent report by the World Health Organization (WHO) finding that it plays a causal role in over 200 diseases, injuries, and health conditions. The harmful use of alcohol has prompted the WHO to endorse the Global Alcohol Action Plan 2022-2030, which aims to reduce alcohol abuse through effective strategies at the national, regional, and global levels.
The impact of alcohol consumption on health is influenced by the volume of alcohol consumed and drinking patterns, with heavy episodic or continuous drinking being the most harmful. Alcohol is linked to an increased risk of developing noncommunicable diseases, such as liver disease, heart disease, and various types of cancer, including breast, liver, head and neck, oesophageal, and colorectal cancers. In 2019, an estimated 474,000 deaths from cardiovascular diseases were caused by alcohol consumption.
In addition to the physical health impacts, alcohol consumption is associated with mental health and behavioural conditions such as depression, anxiety, and alcohol use disorders. Alcohol use can also lead to injuries, including motor vehicle crashes, falls, drownings, and burns, as well as violence, suicide, sexual violence, and intimate partner violence. Alcohol poisoning, overdose, and sexually transmitted infections are also potential consequences of alcohol consumption.
The harmful effects of alcohol extend to pregnant individuals, with consumption during pregnancy increasing the risk of miscarriage, stillbirth, and fetal alcohol spectrum disorders (FASDs). Younger people are particularly vulnerable to the negative consequences of alcohol, with the highest proportion of alcohol-attributable deaths in 2019 occurring among those aged 20 to 39.
Furthermore, alcohol consumption can exacerbate existing medical conditions, with a vicious cycle often observed, especially in patients with chronic pain. Alcohol's impact on multiple organs and body systems underscores the message of moderation or abstinence when it comes to alcohol consumption to minimize health risks.
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Frequently asked questions
There are several global trends in alcohol consumption, including:
- A shift towards moderation and lighter consumption, with consumers adopting strategies to control their alcohol intake.
- Temporary abstinence, particularly among younger LDA+ consumers in India, South Africa, Mexico and Brazil.
- A preference for single-category occasions, where individuals opt for a single type of beverage.
- The growth of e-commerce and digital platforms influencing alcohol sales and purchases.
- Selective premiumisation, with consumers seeking unique experiences and innovative offerings.
The COVID-19 pandemic has had a significant impact on global alcohol consumption patterns, accelerating several pre-existing trends:
- E-commerce and digital sales channels have experienced steady growth due to restrictions and concerns about COVID-19 transmission.
- There has been a preference for purchasing larger pack sizes to avoid frequent shopping trips.
- At-home drinking activities and mixology have influenced a need for a greater variety of alcohol options at home.
Alcohol consumption has been linked to a range of health issues and diseases, with an estimated 2.6 million deaths attributed to alcohol annually. Alcohol plays a causal role in over 200 diseases, including liver disease, heart disease, and various types of cancer. It is also associated with mental health and behavioural conditions such as depression and anxiety. The harmful use of alcohol has led to the development of global action plans, such as the WHO's Global alcohol action plan 2022-2030, which aims to reduce alcohol-related harm through evidence-based strategies.
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