The global drinks industry faced a challenging year in 2025, as changing consumer habits and economic pressures reshaped demand across major markets.
New insights from IWSR reveal a significant slowdown in alcohol spending, signaling a structural shift in how and what consumers choose to drink.
Falling Spending and Changing Priorities
In 2025, total beverage alcohol volumes declined by 2% across the world’s leading markets, while value dropped by 4%. This divergence highlights a key trend: consumers are not only drinking less but also spending less per purchase.
Rising living costs and economic uncertainty have led consumers to prioritize essential goods over discretionary items like alcohol. This shift is also reflected in reduced social drinking occasions, with fewer visits to bars and restaurants.
The Rise of Mindful Drinking
A major driver behind these changes is the growing emphasis on moderation and wellness. Consumers are becoming more selective, often choosing to drink less frequently and across fewer categories.
This trend has benefited no-alcohol alternatives, which continue to gain popularity despite still representing a small share of the overall market. Improved product quality and increased availability have made alcohol-free options more appealing to a broader audience.
Category Performance: Winners and Losers
Traditional alcohol categories struggled in 2025:
- Wine volumes declined by 4%, continuing a long-term downward trend
- Spirits faced pressure, particularly in premium segments
- Beer saw modest declines, reflecting saturation in mature markets
In contrast, RTDs continued to grow, driven by convenience and innovation. The category performed strongly in multiple regions, including South Africa, Canada, and Japan.
Within spirits, certain categories bucked the trend. Irish whiskey and agave-based spirits recorded modest growth, supported by expanding demand in emerging markets and strong performance in mid-range price segments.
Regional Dynamics Shape the Market
Geography played a critical role in 2025 performance:
- India emerged as a standout growth market, with strong gains across categories
- China showed resilience in urban, middle-class segments
- United States faced disruptions from tariffs and trade tensions
- Europe experienced widespread declines, particularly in wine consumption
These regional variations highlight the importance of localized strategies in an increasingly fragmented global market.
Premiumisation Under Pressure
The slowdown in premiumisation is one of the most significant developments of the year. Higher-priced segments, particularly in spirits and beer, underperformed compared to more affordable options.
Consumers are increasingly seeking value for money, leading to stronger performance in lower price tiers. This shift is prompting major producers to rethink their strategies, moving away from a sole focus on premium growth toward more balanced portfolios.
Innovation and Adaptation as Key Strategies
To navigate the evolving landscape, industry players are focusing on innovation and diversification. Key areas of opportunity include:
- Expanding no- and low-alcohol offerings
- Investing in RTD innovation
- Targeting high-growth emerging markets
- Adjusting pricing strategies to meet changing consumer expectations
Outlook: A More Balanced Market Ahead
The trends observed in 2025 suggest a more cautious and selective consumer base. While challenges remain, the industry is adapting to new realities by embracing flexibility and innovation.
The global drinks market is no longer driven solely by premiumisation. Instead, it is becoming more balanced, with growth opportunities emerging across different price points, categories, and regions.
Source: IWSR
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