Global Alcohol Consumption Faces Decade of Decline Amid Evolving Consumer Preferences

Global alcohol consumption is projected to decline over the next decade, despite population growth and rising demand in India. This shift is attributed to changing consumer habits, increasing living costs, and health concerns. India is poised to become the world's second-largest alcohol market behind China by 2032.

The global alcohol market is set to experience a decline over the next decade, even as the population grows and India's demand rises, positioning it as the world's second-largest drinks market after China, according to IWSR.

Leading alcohol producers like Diageo and Anheuser-Busch InBev have faced contracting sales since 2023, influenced by a combination of escalating living costs, evolving consumer behaviors, heightened health consciousness, and the popularity of weight-loss medications. These factors are reshaping demand significantly. IWSR's inaugural 10-year forecast, covering 160 markets, anticipates the continuation of decreased global alcohol consumption until after 2031.

Despite a 9% increase in the number of legal-age drinkers by 2035, IWSR predicts alcohol volumes will remain 1% below last year's levels, equating to a global annual per capita drop in pure alcohol consumption by two bottles of spirits or a case of wine per person. With canned cocktails gaining popularity, traditional beverages like spirits, beer, and wine are projected to lose volume, forcing industry adaptation.