71% of Europeans Cut Back on Alcohol

The European beverage market is undergoing a significant transformation, according to new data presented by Circana at the Beverage Forum Europe held in London on October 7, 2025. The analysis shows that 71 percent of European consumers are reducing their purchase or consumption of alcohol. Among younger adults aged 25 to 35, nearly one in four has stopped buying alcohol altogether.

The total value of the beverage category in Europe has reached €166 billion, accounting for almost a quarter of all fast-moving consumer goods demand in major markets such as France, Germany, Italy, the Netherlands, Spain, and the United Kingdom. While overall beverage sales have grown by 2.1 percent in value and 0.6 percent in volume over the past year, there is a clear divide between alcoholic and non-alcoholic products. Alcoholic beverages have declined by 1.8 percent in value, now totaling €68 billion. In contrast, non-alcoholic drinks have increased by 5.1 percent, reaching €97 billion and representing nearly 60 percent of total beverage sales.

This shift is driven by changing consumer preferences, especially among younger generations who are seeking healthier and more innovative alternatives. Functional drinks, protein beverages, kombucha, and low- or no-alcohol options are gaining popularity. Consumers cite reasons such as being “more refreshing,” “healthier due to plant-based ingredients,” “better tasting,” “better for me,” and “a better fit for my lifestyle” as motivations for choosing these alternatives.

Ananda Roy, Senior Vice President of Thought Leadership at Circana, emphasized that brands can no longer rely on traditional growth strategies. He stated that companies must focus on true strategic reinvention rather than isolated innovations if they want to remain competitive. Roy highlighted the importance of strengthening capabilities, purposeful innovation, integrating sustainability, and building credible connections with consumers.

The report also notes that new lifestyles and consumption rituals are redefining what beverages mean to consumers. Categories outside traditional alcohol are growing rapidly and are expected to have an increasing impact on the wine and spirits sector through 2035. Sustainability has become a commercial opportunity for brands but remains limited by issues of availability and affordability. Companies that successfully balance these factors will gain a competitive edge.

Short-term promotions are no longer enough to make wine and spirits relevant or desirable again. The rise of low- and no-alcohol options reflects a structural move toward moderate consumption that is expected to reshape demand through 2045. However, brand legacy and craftsmanship remain valuable assets for producers.

Danny Stepper, CEO of LA Libations, commented on the importance of the Beverage Forum as a platform for industry leaders to share insights and drive growth. Circana served as the Official Data & Insights Partner for this first European edition of the event. Ananda Roy presented the full study during his keynote address titled “Beverages in Europe: New Horizons in a Changing World.”

The findings suggest that beverage brands operating in Europe must adapt quickly to evolving consumer demands by innovating across product lines, pricing strategies, distribution channels, and marketing approaches. The generational shift away from alcohol presents both challenges and opportunities for companies willing to reinvent themselves for a new era of consumption.