In 2025, the global beverage alcohol market is navigating a landscape marked by economic uncertainty and emerging growth prospects. The IWSR, a leading authority on beverage alcohol data and intelligence, has identified five key trends that are reshaping the industry this year.
Consumers across all demographics are adopting more mindful drinking habits, making moderation a mainstream movement. This shift includes lighter consumption patterns, periods of abstinence, and choosing single-category beverages during social occasions. Notably, the no- and low-alcohol sectors are experiencing rapid expansion, with projections indicating a compound annual growth rate (CAGR) of 4% between 2024 and 2028. The no-alcohol segment alone is expected to contribute over $4 billion in incremental growth by 2028.
Emerging economies are poised to drive significant growth in the beverage alcohol sector over the next five years. Countries like India, China, Brazil, Mexico, South Africa, Vietnam, and Nigeria are leading this surge, propelled by youthful populations, increasing disposable incomes, and expanding middle classes. For instance, India’s total beverage alcohol volumes rose by 4% in the first half of 2024, fueled by strong demand for premium-plus spirits, ready-to-drink beverages, and Indian single malts.
There’s a noticeable shift from formal drinking occasions to more casual, spontaneous gatherings. This trend is boosting the popularity of beverages like rosé wine, Prosecco, bitters, and spirit aperitifs. In the United States, Prosecco and ready-to-drink cocktails have become favorites at informal events such as brunches and barbecues, often replacing more expensive options like Champagne.
While the overall premiumization trend is decelerating, premium-plus beer and cider are experiencing growth due to their relative affordability. In the first half of 2024, volumes for these categories increased by 2%, contrasting with a 3% decline for premium-plus spirits and wine. Consumers are seeking high-quality experiences without the higher costs associated with premium spirits or wines.
On-premise consumption is showing signs of revival in key markets, with consumers increasingly choosing to drink out more frequently. Simultaneously, digital platforms are exerting greater influence over purchasing decisions, as more consumers conduct online research before making in-store purchases. Price comparisons and product discovery are primary motivators, with digital sources such as brand websites and product reviews guiding choices across all channels.
In summary, the beverage alcohol market in 2025 is being reshaped by trends emphasizing moderation, growth in emerging markets, casual consumption, selective premiumization, and the increasing impact of digital channels on consumer behavior.
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IWSR’s Article: Five Key Trends Shifting the Beverage Alcohol Market in 2025 written
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