A Toast to Change: The Future of Global Alcohol Consumption
LONDON — In a surprising twist, global alcohol consumption is expected to take a downturn over the next decade. Yes, you heard that right! Even as populations grow and the demand for drinks rises in vibrant markets like India, which is on track to become the world’s biggest drinks market after China, the overall thirst for alcohol is drying up. This insight comes from the market research savvy of IWSR, a respected name in the industry.
Since 2023, major players in the drinks arena—think Johnnie Walker’s Diageo and the brewing giants Anheuser-Busch InBev, the mastermind behind beloved labels like Corona and Stella Artois—have felt the pinch. Sales have slumped, and stock market valuations have taken a hit. It seems that after the pandemic-induced pouring of drinks, consumers are now raising a glass to a new era of mindful choices.
Why this shift? Well, rising living costs are certainly a heavy weight, but they’re not alone. Changing consumer habits, increased health consciousness, and the growing popularity of weight-loss drugs are having a profound impact on how much we drink. IWSR’s extensive ten-year forecast, covering 160 markets, predicts that global alcohol consumption won’t find its footing until after 2031.
By the time we hit 2035, we’ll be looking at consumption levels that are 1% lower than they are today—even with a rising number of legal-age drinkers (up by 9% globally). This means our per capita consumption could drop by the equivalent of two bottles of spirits or a case of wine per person each year.
Marten Lodewijks, the president and managing director of IWSR, highlighted a crucial point: changing consumer tastes are presenting a tough challenge. Companies can no longer lean back on their past successes; they must evolve. The forecast indicates that spirits, beer, and wine will all see declines in volume by 2035, making way for exciting newcomers like canned cocktails that are capturing attention.
While the biggest traditional markets—the United States and China—are expected to see a staggering 18% drop in alcohol servings, new trends are emerging on the horizon. India is poised for a remarkable 38% increase over the next decade, ready to take the title of the world’s second-largest alcohol market by 2032. Mexico, Vietnam, and Colombia are also warming up to rising demand, with predicted increases of 13%, 15%, and 26% in drinking, respectively.
So, as we look ahead, it’s clear that the landscape of alcohol consumption is shifting. A toast to new beginnings, evolving tastes, and a future where drinking may be less about quantity and more about quality. Cheers to the changes that lie ahead!
