IWSR Reveals Five Key Trends Shaping the Beverage Alcohol Market in 2025

IWSR, a global leader in beverage alcohol data and insights, has identified five key trends that will shape opportunities for the beverage alcohol market in 2025. These trends are:

New Moderation Strategies

Consumers are now more habitual in their control of alcohol intake. However, the 2023 spike in abstaining from alcohol altogether now looks to be a blip. Drinkers have returned to beverage alcohol in substantial numbers in 2024, including younger legal drinking age consumers. However, single-category occasions, reduced intensity of consumption, and temporary abstinence are becoming common methods for regulating consumption.

Premiumisation Slowing but Beer Stands Out

Premium-plus beer/cider is benefiting in the current macroeconomic landscape, demonstrating volume growth of +2% in H1 2024 vs 2023, against declines for premium+ spirits and wines (-3% each), as well as premium+ spirits excluding national spirits (-1%). Consumers still get a sense of premiumisation while spending less out-of-pocket for a premium beer versus a premium wine or spirit.

Growth Axis Shift Intensifies

Developing beverage alcohol markets are set to be the major growth engines in value terms over the next five years. Future value gains will be led by high-population countries such as India, China, and the US. Meanwhile, the five next most value-adding TBAT markets (excluding Russia) are expected to be Brazil, Mexico, South Africa, Vietnam, and Nigeria. Gains from mature markets will prove more elusive – the US being a notable exception – with many seeing marginal growth or even contracting.

The Rise of Casual Consumption

The drinks industry faces a subdued but opportunity-rich environment. Channel shifts offer a note of optimism, with the on-premise showing nascent growth in some key markets, and digital platforms wielding a growing influence on both online and offline purchasing decisions. Inventory management, pricing strategies, and a nuanced understanding of regional dynamics will be critical for success in an increasingly complex global market.

Channel Shifts Impacting Purchasing Decisions

After years of disruption, the on-trade channel is showing signs of revival in key countries, such as China, Germany, Italy, Mexico, the UK and the US, driving a long-awaited note of optimism for the global beverage alcohol market. Meanwhile, digital platforms now play a pivotal role in driving offline sales, as more consumers rely on online research to guide their in-store purchases.

These five trends are shaping the beverage alcohol market in 2025 and beyond. Companies that understand these trends and adapt their strategies accordingly will be best positioned for success in the years to come.