Asia Pacific consumers reduce alcohol intake as health and financial concerns drive mindful drinking trends

Consumers across the Asia Pacific region are changing their drinking habits, according to new research from NielsenIQ. The study shows that people in countries such as Australia, New Zealand, and the Philippines are leading a shift away from habitual alcohol consumption. Instead, they are choosing to drink with more intention and purpose.

The data reveals that three out of ten consumers in the region are drinking less alcohol than they did a year ago. Only 15% reported an increase in their alcohol consumption compared to last year. In Australia, 34% of consumers said they are drinking less, while the numbers are even higher in New Zealand at 38% and the Philippines at 42%.

Health concerns are a major factor behind this trend. Forty-one percent of respondents across Asia Pacific said they are cutting back on alcohol for health reasons. This motivation is especially strong in China, where 52% cited health as their main reason for drinking less, and in Hong Kong, where the figure is 45%.

Financial pressures also play a significant role. The ongoing cost-of-living crisis has led one in four moderating consumers to reduce their alcohol intake due to tighter budgets. Many people are now reserving alcohol for special occasions rather than regular consumption. Nearly a third of those who are drinking less said they only drink on special occasions, with this behavior most common in South Korea and Japan.

The research also found that while some consumers continue to enjoy the same types of drinks when they go out, they are making fewer purchases per visit. This pattern is particularly noticeable in New Zealand, where a third of consumers reported this change.

James Phillips, head of beverage alcohol for Asia Pacific at NielsenIQ, described this shift as a cultural reset rather than a temporary trend. He noted that brands and businesses will need to adapt to these new patterns by offering more options for those who want to moderate their drinking without losing their core customers.

One response to this change has been the rise of no- and low-alcohol beverages. About a third of consumers in the region have tried a low-alcohol or alcohol-free drink at bars or restaurants. Beer is currently the most popular choice among these options, especially in China where consumers show strong interest in trying no- and low-alcohol products.

The findings suggest that mindful drinking is becoming more common throughout Asia Pacific. As people become more health-conscious and budget-aware, their approach to alcohol is evolving. This trend is likely to continue shaping the beverage industry in the region for the foreseeable future.