2025-10-09
At the Beverage Forum Europe 2025, held in London on October 7, Circana, a market analysis company, presented new data showing a significant shift in European beverage consumption. According to their latest report, 71% of consumers are buying, storing, or consuming less alcohol. The trend is especially pronounced among younger adults: nearly one in four people aged 25 to 35 have stopped purchasing alcohol altogether.
Despite an overall increase in beverage sales value by 2.1% and a volume rise of 0.6% compared to the previous year, the report highlights a clear divergence between alcoholic and non-alcoholic products. Alcoholic beverages saw a decline of 1.8% in value, dropping to €68 billion across the main European markets analyzed—France, Germany, Italy, the Netherlands, Spain, and the United Kingdom. In contrast, non-alcoholic beverages grew by 5.1%, reaching €97 billion.
Soft drinks, functional blends, and low- or no-alcohol options now account for almost 60% of total beverage category sales. This shift suggests that future growth in the sector will depend heavily on innovation within non-alcoholic products.
Circana’s analysis points to changing consumer preferences as the driving force behind this transformation. Many consumers cite reasons such as finding non-alcoholic alternatives more refreshing (55%), healthier due to plant-based ingredients and better taste (27%), better for personal well-being (22%), and more compatible with their lifestyles (21%). Popular alternatives include functional drinks, protein beverages, kombucha, and low- or no-alcohol options.
Ananda Roy, Senior Vice President of Thought Leadership at Circana, emphasized that brands can no longer rely on traditional strategies for growth. He stated that companies seeking to expand must focus on strategic reinvention rather than isolated disruptions. As new consumer needs and consumption moments redefine the market, leadership will belong to those who strengthen their capabilities, innovate with purpose, integrate sustainability, and build lasting connections with buyers.
The report also notes that new lifestyles and rituals are changing how people view beverages. Brands are being pushed to adapt their portfolios to these evolving consumption patterns. Growth is accelerating in categories outside traditional alcohol, which is expected to impact the wine and spirits sector through 2035. Sustainability has become a commercial opportunity as well as a regulatory requirement; brands that balance availability and affordability with environmental responsibility are likely to gain a competitive edge.
Innovation is seen as essential for relevance in the beverage market. Redesigning products, pricing strategies, distribution channels, and consumer engagement methods are all necessary steps for brands aiming to remain desirable. Short-term promotions alone are not enough to restore interest in wine and spirits.
The rise of low- and no-alcohol options reflects a structural move toward moderation in drinking habits. While this trend is expected to reshape demand through 2045, established brands and craftsmanship still hold significant value for consumers.
Circana served as the Official Data and Insights Partner for the inaugural European edition of the Beverage Forum. During the event, Ananda Roy presented the full study under the title “Beverages in Europe: New Horizons in a Changing World.” Danny Stepper, CEO of LA Libations and organizer of the forum, highlighted Circana’s role in providing high-level intelligence on consumer behavior and market dynamics.
Circana specializes in technology-driven data analysis and artificial intelligence solutions for consumer goods companies, manufacturers, and distributors seeking to optimize performance in rapidly changing markets.
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