New data from US market research firm Circana suggests a fundamental change in European drinking habits. Younger adults are increasingly choosing taste and health over alcohol. The survey indicates this is not just a temporary dip due to tight wallets, but a possible structural shift.
What the Numbers Say?
- 71% of European consumers reported that they’re buying or consuming less alcohol.
Among 25-35 aged adults, nearly one in four say they’ve stopped drinking altogether.
Non-alcoholic beverages now account for nearly 60% of Europe’s €166 billion beverage market. These grew 5.1% year-on-year, while alcoholic drinks declined 1.8%.
55% of respondents say non-alcoholic drinks are “more refreshing.”
Another 27% said non-alcoholic beverages tastes better or healthier.
In short – the drop in alcohol consumption is broad, deep, and especially pronounced among younger demographics.
Why It’s Happening: Habit, Health, or Hardship?
Some industry insiders argue this decline is cyclical, a result of inflation, economic pressures, or shifting consumer budgets. In better times, they expect alcohol sales would bounce back. But others believe it’s more than that. They say we are witnessing a generational preference shift. As health consciousness rises and drinking norms evolve, the decline may be harder to reverse.
Ananda Roy, Senior Vice President at Circana, called the change a signal for “strategic reinvention” by beverage companies.
Not everyone agrees. Diageo’s interim CEO, Nik Jhangiani, challenged the narrative.
“When people say it’s all about health and wellness … I don’t buy into that.” He attributed much of the decline to economic cycles rather than deep lifestyle changes.
Broader Trends Shows:
Europe isn’t alone in this shift. Across the beverage industry, low- and no-alcohol drinks are gaining ground:
In the EU, the non-alcoholic beverage market has seen rapid growth, with some forecasts projecting compound annual growth rates above 20% through 2028.
As consumers reimagine what “drinking” means, mocktails, functional non-alcoholic drinks, and premium alcohol-free spirits are gaining shelf space and social credibility.
Yet challenges linger. Social norms, branding, and price remain barriers, especially when non-alcoholic versions are seen as “less fun” or “less real.” Research indicates social pressure still persuades many to choose alcoholic drinks over alternatives in social settings.
Why This Matters
Public health benefit: Lower alcohol consumption can reduce disease burden, accidents, and healthcare costs over time.
Business impact: Beverage companies face structural disruption. Brands that don’t adapt risk losing relevance.
Cultural shift: Drinking has long social and cultural roots — but today’s youth may be redefining those norms.
Policy opportunity: Governments could support non-alcohol options, regulate alcohol marketing, and encourage healthier consumption patterns.