Alcohol spend still stubbornly low, despite rising confidence levels

Against a volatile political and macroeconomic backdrop, consumers are displaying tentative signs of strengthening financial confidence – but not enough to reverse ongoing declines in alcohol consumption in leading markets around the world.

According to the latest wave of IWSR Bevtrac consumer research, undertaken in 15 leading markets[1] during September 2025, people are continuing to prioritise spend on necessities such as food and personal care over alcohol, amid continued economic and inflationary pressures.

There are signs that the situation is beginning to stabilise, but recalled spend remains net negative, and even higher-income groups – traditionally more insulated from any downturn – are continuing to trim their budgets.

The research shows a clear disconnect: while financial confidence is trending positive versus a year ago in 9, with pressures persisting across the Americas and Europe in particular.

“Financial confidence is trending more positively in markets such as the UK, the US and Spain, but for the moment this improvement in confidence has not translated into positive momentum for TBA [total beverage alcohol] spend,” explains

“Higher-income consumers in 11 out of the 15 markets are trending negative in terms of their spend on alcohol, with the only major exceptions India and China, where only urban middle class consumers are surveyed.”

Gen Z and Millennials: mixed fortunes

Gen Z participation rates in alcohol are still rising versus two years ago, but have largely stabilised over the past 12 months: in September 2025, 74% of Gen Z consumers were drinking alcohol, up from 72% in September 2023; over the same timescale, the cohort’s participation gap versus all drinkers has narrowed from nine percentage points to three.