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Global alcohol industry faces structural decline

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2026-09-15 05:50 UTC → 2026-10-02 08:36 UTC · added ~~removed~~

The global alcohol industry is facing a period of structural decline, with analysts comparing the sector’s declining valuations to the ‘big tobacco’ era. While previous shifts were attributed largely to Generation Z, current data suggests a broader trend driven by wellness culture, reduced disposable income, and the rise of GLP-1 weight loss drugs, such as Ozempic, among middle-aged drinkers. Regional markets are experiencing specific distress. In Scotland, the Scotch whisky industry is struggling with a surplus of maturing spirits resulting from overproduction in the 2010s, compounded by a global cost-of-living crisis. Australia has also seen significant volatility, marked by the collapse of nearly 50 craft breweries over a three-year period and a reported $1 billion loss by Treasury Wine Estates. In Europe, recent data from the six largest grocery markets—France, Germany, Italy, the Netherlands, Spain, and the United Kingdom—confirms a shift toward healthier options. While total beverage spending rose by 2.9%, alcohol spending declined by 0.8%, with spirits seeing the largest drop at 2.2%. Conversely, sales of low or no-alcohol alternatives grew by 7.3%. Data from Circana indicates that 43% of consumers have reduced their alcohol consumption, a trend most pronounced among those aged 25 to 39, where 50% reported reducing, delaying, or abstaining from alcohol. In addition to consumer behavior, the industry faces increasing pressure from public health initiatives. The World Health Organization is actively advocating for stricter marketing regulations and higher taxes to address declining consumption trends.

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