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.

At the same time, Gen Z drinkers appear to be becoming more selective, with the average number of categories consumed per occasion dropping from 2.8 to 1.8 over the past two years.

Millennials too are streamlining their repertoires: while they remain the most likely group to be engaged with alcohol in the US, strengthening moderation attitudes have driven a reduction in the average number of categories consumed over the past year, from 6.3 to 5.9. According to a recent press release from IWSR, across all fifteen markets, the number of categories consumed by Millennial drinkers at their last occasion dropped from an average of 2.8 in Autumn 2023 to 1.8 in Autumn 2025. 81% of Millennials reported drinking in the last six months in autumn 2025, down from 83% in Spring 2025. This is the lowest rate of participation in beverage alcohol among Millennials ever recorded by Bevtrac.

In Brazil, Millennials’ perceived worsening financial situation is curbing engagement, impacting sparkling wine and spirits especially, while French Millennials are increasingly shifting their attention from spirits and RTDs to wine.

Abstinence, no/low participation stable

Claimed moderation levels are stable versus last year, with the share of drinkers taking ‘dry’ days declining, led by younger LDA (legal drinking age) adults. However, consumers are now more aware of those around them cutting back on drinking, suggesting that such behaviours have become more mainstream.

Meanwhile, recruitment into no-alcohol is stabilising, with continued volume gains mostly stemming from increased consumption, rather than new entrants. Only Japan and Mexico saw any meaningful growth in the category’s user base over the past year.

On-trade: renewed suffering

Recalled on-trade visits have declined year-on-year, ending the brief rally seen in the second half of 2024, and continuing the downward trend seen in Bevtrac data from the first half of 2025. The biggest declines were seen in China and Mexico, although Spain and Taiwan both registered increases.

Additionally, on-trade visits now feature fewer categories and fewer serves compared to 2024, with beer gaining ground at the expense of spirits as consumers switch categories to save money.

“Ongoing instability and financial pressure have kept drinkers going out less – a consistent trend over the past two-and-a-half years that signals no near-term recovery for on-premise consumption,” says Mitic. “Affordability appears to be the key driver of the shift to at-home or third-space drinking.”

GLP-1 usage still expanding

The use of GLP-1 weight-loss injectables is continuing to spread around the world, led by the US, where an estimated 14% of alcohol consumers now use the drugs, closely followed by Australia (11%), with increased uptake also reported in the UK and Brazil.

“The familiarity and accessibility of weight-loss injections is driving increased usage among drinkers, especially in the US, with consideration levels rising in many other markets,” says Mitic. “Emerging evidence shows that GLP-1 users are becoming less hedonic; their consumption is converging with that of the typical drinker.”

[1] US, Canada, Brazil, Mexico, France, Germany, Italy, Spain, UK, South Africa, India, China, Japan, Taiwan, Australia