The global alcohol industry has lost approximately $830 billion in market value over the past four years, with a Bloomberg index tracking around 50 major beer, wine, and spirits producers now standing 46% below its June 2021 peak as drinking habits undergo fundamental transformation.
According to Morgan Stanley analyst Sarah Simon, a structural change is underway as people drink less alcohol, driven by rising health awareness following warnings from the World Health Organization and US Surgeon General, with a Gallup survey reporting that American alcohol consumption has dropped to its lowest level since records began in 1939.
Generation Z is leading this historic shift, with approximately 65% of Gen Zers planning to reduce their alcohol consumption in 2026 and nearly 40% aiming for a completely dry lifestyle year-round, influenced by physical wellness trends, high cost of living making alcohol a lower discretionary spending priority, and the growing popularity of teetotal celebrities and non-alcoholic alternatives.
Major European drinks giants Diageo, Pernod Ricard, and Rémy Cointreau have seen shares fall to their lowest levels in at least a decade, while Brown-Forman (Jack Daniel's owner) and China's Kweichow Moutai have also experienced significant declines, with the downturn compounded by US tariffs, high interest rates weighing on consumer spending, elevated commodity prices, and in China's case, weak household confidence and bans on alcohol at official functions.
In response to these mounting pressures, alcohol producers are pivoting toward non-alcoholic products—with Carlsberg introducing alcohol-free cider and Campari launching its non-alcoholic Crodino brand in the United States—while the no-alcohol category has become a multi-billion dollar market growing at double-digit rates, illustrating an industry-wide shift from volume to value as companies face falling revenues, high debt levels, and frequent management changes.
