Changing Tides: Global Alcohol Consumption Set for a Decline

Global alcohol consumption is projected to decrease over the next decade, despite population growth and increasing demand in India. Factors such as changing consumer habits and health concerns contribute to this decline. IWSR forecasts indicate significant volumes will be lost, with newer drinks gaining popularity.

Global alcohol consumption is on track to decline over the next decade, market research firm IWSR reports, despite an expanding global population and rising demand in emerging markets like India. India is anticipated to surpass the United States to become the world's second-largest beverages market behind China by 2032.

Big players in the alcohol industry, including Diageo and Anheuser-Busch InBev, have faced shrinking sales and declined stock market valuations since 2023. Industry representatives cite surges in living costs, evolutions in consumer habits, health concerns, and the impact of weight-loss medications as key factors reducing demand.

IWSR’s forecast across 160 markets predicts a continual drop in global alcohol volumes until after 2031, with a 1% lower volume anticipated by 2035 compared to last year. Although overall consumption diminishes, countries outside major markets are expected to fill some of this demand, with Mexico, Vietnam, and Colombia showing significant growth potential.