Despite a glimmer of hope in the form of rising financial confidence, the world's leading markets are still witnessing a stubborn decline in alcohol consumption. This trend persists even as consumers navigate a volatile political and economic landscape.
The latest IWSR Bevtrac consumer research, conducted across 15 key markets in September 2025, reveals an interesting dynamic. People are prioritizing their spending on essential items like food and personal care, with alcohol taking a back seat. This is especially true in the face of ongoing economic challenges and inflationary pressures.
While there are indications that the situation is stabilizing, the overall spend on alcohol remains in the red. Even higher-income groups, who are typically more resilient during economic downturns, are tightening their budgets.
The research highlights a disconnect: financial confidence is on an upward trajectory in 9 markets, yet alcohol spending continues to decline. This is particularly evident in the Americas and Europe.
"Financial confidence is improving in markets like the UK, the US, and Spain, but this boost in confidence hasn't translated into increased spending on total beverage alcohol (TBA)," explains [Name of Expert].
"In 11 out of the 15 markets, higher-income consumers are spending less on alcohol. The notable exceptions are India and China, where only urban middle-class consumers were surveyed," [Name of Expert] adds.
Gen Z and Millennials are experiencing a mixed bag. Gen Z's participation in alcohol consumption is still on the rise compared to two years ago, but it has largely stabilized over the past 12 months. In September 2025, 74% of Gen Z consumers were drinking alcohol, up from 72% in 2023. Interestingly, the participation gap between Gen Z and all drinkers has narrowed from 9 percentage points to 3 over the same period.
This analysis is based on IWSR data from the 2025 release. For a more comprehensive understanding and up-to-date insights, feel free to reach out for further discussion.
But here's the intriguing part: with financial confidence on the rise, why isn't it translating into increased alcohol spending? And what does this mean for the future of the alcohol industry? These are questions that deserve further exploration and debate.
What are your thoughts on this intriguing trend? Feel free to share your insights and opinions in the comments below!
