Published by Global Banking & Finance Review®
Posted on October 7, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleYounger Europeans are opting for non-alcoholic drinks due to health and taste, impacting alcohol sales. This shift demands strategic changes from beverage companies.
By Emma Rumney
-Younger Europeans are drinking less alcohol because of the way it tastes and concern over their health, a market research firm said on Tuesday, suggesting slow sales are a result of changing preferences rather than just a financial squeeze.
Alcohol sales have been falling in developed countries in recent years, prompting debate over what has driven the declines.
Some executives argue it is mostly a result of cyclical financial pressure on consumers, which means sales should bounce back when times get better. But others say the shift is a sign of changing preferences, which could be harder to reverse.
Circana, a U.S. market research company, said its survey pointed to a generational shift in Europe, where it found 71% of consumers were buying or consuming less alcohol, and almost one in four 25-35-year-olds had ditched alcoholic drinks altogether.
The shift demanded "strategic reinvention" from beverage companies, said Ananda Roy, senior vice president of thought leadership at Circana.
Its survey found that 55% of Europeans said non-alcoholic drinks were "more refreshing", while another 27% said they were healthier or tasted better.
Non-alcoholic drinks now account for nearly 60% of sales in Europe's 166 billion euro beverage market after growing 5.1% year-on-year, while alcoholic beverages fell 1.8%.
Some alcohol companies argue financial pressures are the bigger factor after years of inflation and high interest rates.
"When people say it's all about health and wellness... I don't buy into that," Diageo's interim CEO Nik Jhangiani told a conference in September, saying declines were more related to the economic cycle.
In August, the number of Americans who reported drinking alcohol hit a record low, according to a Gallup poll, with the majority for the first time saying even moderate drinking was harmful to health.
(Reporting by Emma RumneyEditing by Peter Graff)
Alcohol consumption refers to the intake of beverages containing ethanol, which is commonly found in drinks like beer, wine, and spirits.
Non-alcoholic beverages are drinks that contain little to no alcohol, including options like soda, juice, and non-alcoholic beer.
A market research firm is a company that gathers and analyzes data about consumers and markets to help businesses make informed decisions.
Consumer perception refers to the way individuals view and interpret products, brands, or services based on their experiences and beliefs.
Strategic reinvention is the process of rethinking and transforming a company's strategies to adapt to changing market conditions and consumer preferences.
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