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Global alcohol market contraction and shifting demand
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2026-10-07 19:02 UTC → 2026-10-17 08:37 UTC ·
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Global alcohol and spirits market trends contraction and shifting demand
The global alcohol and spirits markets are experiencing undergoing significant shifts in consumer demand driven by declining consumption and industry stability. contraction. In the United States, the tequila market has seen recent price declines, such as a 1.30% drop in the Tequila 50 index, driven by retailer repricing and promotions. However, broader trends in the U.S. indicate a period of contraction. The craft spirits sector reported its third consecutive year of decline in 2025, with sales falling 3.7% to $7.3 billion and sales volume dropping 8%. For the first time, distillery closures outpacing outpaced new openings for openings, with the first time. Additionally, major players like number of active craft distillers decreasing by 6.6% to 2,131 and employment falling by over 25%. Contributing factors include excess inventory, declining export markets due to tariffs, and state-level shipping restrictions. In the beer sector, Diageo have announced is closing its Guinness experimental brewery closures, in Halethorpe, Maryland, citing high operational costs and shifting consumer demands. demands as part of a $1 billion restructuring plan. This follows aligns with reports that alcohol identification among Americans has reached its lowest level since 1939. In the United Kingdom, the hospitality sector shows divergent patterns. While distillate sales 1939, with Gallup reporting only 54% of Americans identify as drinkers. On a global scale, 2025 saw continuous declines in pubs and bars sales volumes: wine fell by 16.5% year-on-year, there has been growth in 5%, beer by 2%, and cider sales, alongside an increasing interest in fruit-flavored beers. spirits by 3%, while non-alcoholic beer grew by 8%. According to IWSR analysis, this trend affects all generations, though Gen Z shows the lowest consumption rates at 74%. Key drivers include rising prices, increased health awareness regarding the carcinogenic nature of alcohol, and World Health Organization guidance stating there is no safe amount of consumption.
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- 2026-10-17 08:37 UTC Global alcohol market contraction and shifting demand
- 2026-10-07 19:02 UTC Global alcohol and spirits market trends
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