Baby Boomers Drove a 3% Drop in Global Alcohol Volumes in 2025

A sharp pullback by Baby Boomers helped deepen the global decline in beverage alcohol consumption in 2025, even as Gen Z showed stronger participation and growing interest in categories such as ready-to-drink beverages, cocktails and no-alcohol products, according to new consumer research from IWSR.

The market analysis group said total beverage alcohol volumes in the world’s 15 largest markets fell by -3% in 2025, worsening from a -2% decline in 2024. Every major category posted declines last year except RTDs and no-alcohol products. The findings come from IWSR’s Bevtrac 2026 Consumer Insights: Wave 1 report, based on research conducted in March across key markets including the United States, Canada, Mexico, Brazil, France, Germany, Italy, Spain, the United Kingdom, South Africa, China, India, Japan, Taiwan and Australia.

IWSR said moderation is now firmly established across those markets and is no longer behaving like a short-term response to inflation or economic uncertainty. Instead, the group described it as a structural shift shaped by changing habits, health concerns and broader lifestyle choices. While consumer confidence has started to recover, alcohol consumption remains under pressure from long-term moderation trends and rising engagement with no-alcohol alternatives.

The report points to Boomers, defined here as consumers age 61 and older, as the generation exerting the strongest downward pressure on volumes. According to IWSR, they are the only age group reducing participation, drinking frequency and the number of drinks consumed per occasion at the same time. Across all adults in the top 15 markets, participation reached 76% in March 2026, slightly above the 75% recorded in April 2023 but below a peak reached in 2024. Drinking frequency was broadly stable. Intensity fell more clearly, with the average number of drinks per occasion dropping from 4.4 in March 2024 to 3.9 in March 2026.

Marten Lodewijks, IWSR’s managing director and president, said Boomers are moderating because of both financial pressure and changing routines. In the research, the main reasons this group gave for drinking less were cost, fewer social occasions and a desire to reduce alcohol intake. That differs from other age groups, which were more likely to cite moderation itself and lifestyle choice before cost.

The trend is especially visible in markets such as Brazil, India and the United States, where Boomers were more likely to say they were drinking less. IWSR also found that moderation is accelerating among Boomers in Brazil and among both Boomers and Generation X in India.

At the other end of the age spectrum, Gen Z appears to be gaining importance as more consumers reach legal drinking age. IWSR said Gen Z’s share of the drinking population rose from 13% in March 2024 to 17% in March 2026. Over the same period, Boomers’ share slipped from 23% to 21%. The participation gap between legal-drinking-age Gen Z consumers and the broader adult drinking population has nearly disappeared. In March 2026, 76% of adults across the top 15 markets said they drank alcohol, compared with 74% of Gen Z. In India and the United States, Gen Z participation was already higher than that of the legal-drinking-age population overall.

The report describes a different relationship with alcohol among younger adults. While Boomers are more likely to drink to relax, often with a casual meal or while alone, Gen Z tends to drink in social settings tied to shared experiences. Their leading occasions include socializing, relaxing while watching television or listening to music, attending events and casual meals. Drinking before going out ranked lowest among their listed occasions, though it remained more common for Gen Z than for older generations.

Lodewijks said younger consumers are not abandoning alcohol so much as redefining its role. He said Gen Z drinks mainly for connection rather than for unwinding alone and tends to approach alcohol more cautiously than older groups. According to IWSR, Gen Z is more likely than other cohorts to pay attention to government drinking guidelines and is also more engaged with no-alcohol alternatives that allow participation without losing control.

That behavior is helping support categories that offer convenience and flexibility. The research found that Gen Z over-indexes on RTDs and cocktails, reinforcing demand for flavor-led products and mixed-drink styles that fit parties, festivals and informal gatherings. No-alcohol options also play a larger role for this generation because they align with concerns about health, image and inclusion.

For producers and brand owners, the findings suggest a split strategy across generations. Older drinkers may require products positioned around quality, smaller serves and moderation-friendly formats that respond to health concerns or tighter budgets. Younger adults may be more responsive to occasion-based innovation built around portability, flavor variety and products designed for group settings.

The report arrives at a time when beverage companies across wine, beer and spirits are trying to adjust to slower growth in mature markets and changing consumer priorities. Bevtrac now tracks sentiment in 19 markets representing 78% of global consumption after adding Nigeria, South Korea, Thailand and Vietnam. But within the core top 15 markets that shape much of global demand, IWSR’s latest data suggests that age is becoming one of the clearest forces behind how people drink less, what they still choose to drink and where future growth may come from.