On-Trade Bar and Restaurant Visits Fall Across Major Markets as Consumers Shift Toward Selective Socializing

On-trade visits, which refer to drinking and socializing in bars, restaurants, and similar venues, are continuing to decline across major global markets. This trend is driven by consumers who are drinking less, choosing to go out earlier in the day, and focusing on quality over quantity. According to IWSR Bevtrac consumer research from September 2025, most of the 15 key markets studied have seen year-on-year declines in on-trade visits. This continues a pattern observed earlier in 2025 and reverses the brief increase seen at the end of 2024.

Consumers are now more selective about when and how they visit on-trade venues. They are consuming fewer drinks and sticking to fewer types of beverages per outing. This behavior reflects broader trends of moderation and concerns about affordability. Many people are reducing both their overall alcohol intake and their participation in different drink categories. At the same time, they are seeking value not just in terms of price but also through meaningful experiences and drinks that fit their preferences for lower alcohol by volume (ABV).

The shift away from traditional on-trade venues is also being fueled by increased competition from at-home drinking occasions. These at-home gatherings are often chosen for affordability reasons but have become more creative and experiential. Jennifer Creevy, director of food and drink at WGSN, notes that consumers are building sophisticated home bars and looking for new, high-quality drinks to share with friends. They want experiences that allow them to showcase their skills and enjoy status-driven sips.

Alternative spaces for socializing are also gaining ground. WGSN forecasts growth in non-traditional venues such as cafes, bakeries, hair salons, and bookshops as places where people gather around shared interests or activities rather than just for a drink. Younger consumers, especially Gen Z, are leading this trend toward intentional meet-ups with a specific purpose beyond drinking.

Radius, IWSR’s innovation tracker, highlights a shift from late-night outings to daytime drinking occasions. As nightlife becomes more expensive and less appealing across generations, people are setting boundaries to protect both their experience and their well-being the next day. This has led to the rise of brunch culture, day-clubbing, afternoon DJ sets, and drinks designed for lighter, longer sessions—such as low-ABV “day-caps” that encourage connection without excess.

Wellness is another key factor influencing on-trade drinking habits. Consumers across all age groups are more health-conscious than ever before. This is reflected in earlier drinking times, more purposeful gatherings, and a preference for lower ABV beverages.

The concept of value in the on-trade is evolving beyond just price. While premiumization remains important, consumers now demand relevance and justification before spending more money. They are increasingly selective about when and where they choose to upgrade their drink choices. Many seek an ABV “sweet spot” that delivers both quality and enjoyment at an affordable cost.

On-trade venues can respond by offering smaller serves or mini-cocktails that address affordability concerns while encouraging exploration. Emotional pay-off is also important; consumers want the entire experience—from packaging to service—to feel worthwhile. Leading bars are using storytelling and immersive menus to create memorable experiences rather than simply listing available drinks.

These changes present opportunities for on-trade businesses to adapt by rethinking their offerings and aligning with new consumer behaviors.

In terms of category mix, beer is gaining ground over spirits in some markets as affordability pressures persist. In the UK, while total beer volumes are expected to decline overall, on-trade beer consumption shows signs of resilience. IWSR Bevtrac research from September 2025 found that 28% of UK consumers drank beer during their last outing—down from 34% in September 2023—but 53% of those beer drinkers visited an on-trade venue for their last occasion, up from 46% two years earlier.

Gen Z consumers play a pivotal role in shaping the future of the on-trade channel. Despite overall declines in participation, Gen Z remains highly engaged with on-premise venues across regions including Europe, North America, Australia, South Africa, and Japan. In September 2025 across the top 15 Bevtrac markets, 39% of all consumers visited an on-trade venue during their last drinking occasion compared with 46% among Gen Z.

Marten Lodewijks, IWSR Managing Director and President, explains that Gen Z’s approach is not simply about drinking less but about being more selective and intentional—consuming fewer categories per outing and favoring earlier or lighter occasions. This generational influence is helping set new patterns for how people socialize around drinks now and into the future.

IWSR’s full On-Trade value and volume data for fiscal year 2025 will be released at the end of May.