Global Alcohol Consumption Declines in 2024, but Growth Sectors Emerge

In 2024, global alcohol volumes decreased by 1%, according to new findings from the IWSR. This downturn stemmed largely from two major markets: the United States saw a 3% decline, while China experienced a sharper 5% drop. These figures reflect broader economic and demographic pressures that continue to influence global drinking habits.

US and China Lead the Global Alcohol Decline

Political and economic instability contributed to weaker alcohol consumption in the US, with all categories declining except for ready-to-drink (RTD) beverages. In China, the downturn affected every alcohol category, as slowing economic growth, a real estate crisis, and an aging population dampened consumer demand.

Growth Trends in Alcohol Markets Show Promise

Despite the overall decline in total beverage alcohol consumption, IWSR highlights several growth opportunities. In the US, five key areas are projected to drive value growth between 2024 and 2034:

• Cocktails and long drinks
• No-alcohol beer
• Tequila
• American whiskey
• Hard tea

No-Alcohol Beer Gains Momentum

No-alcohol beer emerged as a standout performer, growing 23% in 2024. IWSR predicts the category will expand at a compound annual growth rate (CAGR) of 18% through 2029. Health and wellness trends, innovation, celebrity endorsements, and new draft options in bars all contribute to its rising popularity.

Super-premium beer also showed resilience, growing 2% last year. This price tier is expected to continue expanding at a 4% CAGR through 2029. In contrast, the broader beer category is forecasted to shrink by 3% annually during the same period.

Premiumization Drives Agave Spirits Growth

Agave spirits continue to gain traction as consumers seek products with authenticity, transparency, and fair pricing. The category is expected to grow at a modest CAGR of 1% through 2029. Within this segment, premium agave spirits are forecasted to accelerate at 6%, while super-premium expressions may decline by 7%.

Marten Lodewijks, IWSR’s US president, noted, “In this new phase of more measured growth for Tequila, focused on premium price points, reposado has emerged as a clear winner, delivering strong growth due to its approachable price point and smooth taste profile.” (Source: The Drinks Business)

Hard Tea Takes the Lead Among RTDs

RTDs, particularly hard tea, show significant potential. While the overall RTD category is expected to grow by just 1% through 2029, hard tea stands out with a projected growth of 11% CAGR.

Lodewijks explained, “More premium, spirit-based hard tea offerings blend the appeal of classic iced tea with the sophistication of real spirits, attracting consumers seeking flavorful, lower-ABV options.” (Source: The Drinks Business)

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Source of information

The Drinks Business Article —Global alcohol volumes fell 1% in 2024, written by Amelie Maurice-Jones

The image of the article is courtesy of ©  Kzenon via Canva.com