The Six Global Trends Shaping Beverage Alcohol In 2025

12 Sep The Six Global Trends Shaping Beverage Alcohol In 2025

The global leader in beverage alcohol data and insights, IWSR, has outlined the six global trends shaping the beverage alcohol sector in 2025:

1. Selective premiumisation

Premiumisation continues to drive growth, but in a more fragmented manner. Health concerns and cost-of-living pressures continue to influence consumer decision-making. Whilst many consumers are drinking less, they are opting for higher quality when they do.

Premium-and-above volumes (excluding national spirits) grew 3% in 2024, with the strongest gains in South America, Asia plus Africa and the Middle East. In addition, this ‘selective premiumisation’ is evident in cocktail culture, where unique experiences and RTD innovation are pushing growth, with RTD cocktail and long drink volumes forecast to double globally between 2019 and 2029.

2. Evolving lifestyles

Many consumers are rethinking their relationship with alcohol and moving away from traditional drinking occasions. While economic pressures first drove the shift towards lower consumption, changing priorities are also contributing to maintaining this lifestyle, particularly in the US and China.

Moderation and lower consumption are increasingly becoming a sustained lifestyle choice. Consumers are also favouring at-home and virtual social occasions, while tourism is bouncing back  – with travel retail volumes up 3% last year.

To leverage this trend, brands should offer value-driven products, craft immersive tourism experiences, and embrace and capitalise digital engagement.

3. Digital and tech

E-commerce remains a key growth channel, rising 2% globally in 2024 and 4% in Asia-Pacific. Direct-to-consumer models are helping brands bypass distribution barriers, while affordability and convenience drive engagement in emerging markets.

The IWSR also found that social media influencers still have influence over younger drinkers, whilst celebrity-backed brands are facing rising consumer fatigue.

Convenience and speed will continue to be integral for any effective e-commerce strategy.

4. Social drinking

Cost-of-living and affordability pressures are reshaping social occasions, with early-evening, lower-tempo moments such as aperitivo gaining ground. While on-trade faces headwinds from higher taxes and weaker consumer spending, at-home drinking continues to grow. In some regions, ‘third spaces’ such as DIY home bars are proliferating with an increasing number of consumers likely to create environments in which they can control expenses.

5. Health and ethics

Moderation and wellness are deepening as long-term trends, which has seen movements such as ‘zebra striping’ (switching between full-strength and no-alcohol options) gaining popularity. This has seen non-alcoholic volumes grow 9% globally in 2024, primarily driven by beer, as well as other categories.

Cultural identity is also influencing choices e.g. in India homegrown single malts now outsell scotch, as is sustainability concerns.

Whilst economic demands are still driving a lot of consumer decisions, ethical and local factors are proving important for many consumers, therefore brands need to take into consideration diverse motivational and demographic changes.

6. External pressures

Geopolitical instability, regulatory tightening and shifting consumer spending priorities continue to weigh on the industry. Consumers are allocating more spend to essentials, while alcohol faces increased public health messaging and, in some markets, new trade barriers.

Consumption is particularly impacted in countries where trust in official advice is high, such as China, India, Latin America and South Africa.

Therefore, monitoring public health messaging and legislative changes, as well as exploring emerging markets, is essential for industry operators navigating geopolitical and regulatory challenges.

Furthermore, the market remains vulnerable to external pressures from shifting consumer preferences to supply chain instability and changing regulations. Tariffs and trade agreements – such as the EU-US or the UK-India – can be either beneficial or restrictive, depending on the market.

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