The global beverage alcohol market in 2025 will be shaped by five key trends, as economic uncertainty continues into the year. While markets in the US and Europe remain sluggish due to high inflation, emerging economies like India, South Africa, and several parts of Southeast Asia and Latin America are showing strong growth. These regions are benefiting from younger consumers, a growing middle class, urbanization, and a demand for premium products.
Here are the five major trends shaping the industry:
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New Moderation Strategies: Consumers are increasingly moderating their alcohol consumption across all age groups. This includes drinking less overall, taking breaks from alcohol, and opting for single-beverage occasions. As moderation becomes a mainstream cultural trend, categories like no- and low-alcohol drinks are growing rapidly, especially in markets like India, South Africa, Mexico, and Brazil.
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Growth Shift to Emerging Markets: Developing countries are expected to drive the majority of growth in beverage alcohol sales. Markets such as India, China, and the US are leading the charge, with younger populations and expanding middle classes fueling demand for premium and innovative products. India, for instance, has seen growth in premium spirits and ready-to-drink (RTD) beverages.
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Casual Consumption: People are shifting away from formal drinking occasions to more casual ones, such as brunches and informal gatherings. This has boosted categories like Prosecco, bitters, and RTDs. Markets like the US, Italy, and China are experiencing this shift, with RTDs continuing to gain popularity.
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Premiumisation Slows, But Beer Surges: While the trend towards premium spirits and wines is slowing, premium beer is thriving. Beer offers a more affordable way to indulge in premium products, and it’s benefiting from the economic pressures consumers face. In addition, luxury spirits (priced above $100) continue to grow, though more slowly.
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Channel Shifts in Consumer Purchases: The on-trade (bars, restaurants) channel is recovering, with more consumers going out to drink, particularly Millennials in the US. Digital platforms are also influencing consumer decisions, with more people researching products online before making in-store purchases. This digital shift is impacting both online and offline shopping behavior.
Despite economic challenges, these trends indicate that there are still significant growth opportunities, especially in emerging markets and through strategic shifts in how and where people are consuming alcohol.
