Some 71% of European consumers are buying, stocking or consuming less alcohol, according to new analysis released today at the Beverage Forum Europe 2025 by Circana.
Additionally, one in four 25-35-year-olds have stopped buying alcohol altogether.
Circana said this signals a ‘structural reset’ in the European beverage market, as a new generation turns away from alcohol in favour of healthier alternatives.
The total European beverages category has reached a value of €166bn, accounting for 23% of all edible CPG demand across France, Germany, Italy, the Netherlands, Spain and the UK.
Overall sales value has grown by +2.1% and volume has risen +0.6% year-on-year.
However, alcoholic beverages fell -1.8% in sales value to €68bn, while non-alcoholic beverages expanded +5.1% to €97bn, suggesting overall growth is driven by the latter.
This is not surprising – soft drinks, functional blends and no & low choices now make up almost 60% of sales in the category.
Consumers have various reasons for making this switch, including non-alcoholic beverages being: ‘more refreshing’ (55%), ‘healthier with plant-based ingredients’ and ‘tasting better’ (27%), ‘better for me’ (22%) and ‘fits my lifestyle’ (21%).
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Ananda Roy, SVP thought leadership at Circana, said: “The message to brands is clear; ‘more of the same’ is no longer a growth strategy. Growth will not come from short-term disruption but from strategic reinvention. As new consumers, needs and occasions reshape the market, category leadership will belong to those who strengthen their capabilities, innovating with purpose, embedding sustainability, and engaging shoppers in credible and lasting ways.”
Circana said that there is a structural shift towards moderation and under-consumption that will shift category demand by 2045, and suggested that true, long-term innovation and investment in product design, pricing distribution and consumer engagement are required to make wine and spirits ‘relevant and desirable’ again.
However, it still contends that brand heritage and craftsmanship will remain powerful assets.
Circana also suggested that delivering sustainability could be an opportunity to gain a competitive edge.
The technology, AI and data company has recently been confirmed as the official Data & Insights Partner to the Beverage Forum’s first ever European edition, taking place today in London, where Ananda Roy will reveal the full findings of Circana's analysis.
Based on the latest available data from the International Organisation of Vine and Wine (OIV) and South African industry reports:Total Annual Consumption: Approximately 4.5 million hectoliters (or 450 million liters) in 2023. This represents a slight decline of 1.8% from the record high of 4.6 million hectoliters in 2022. Domestic sales data aligns closely, with around 459 million liters sold in the local market in 2023.
Per Capita Consumption: About 8-9.2 liters per person annually (across the total population of ~62 million). This is relatively low compared to global leaders like Portugal (over 50 liters) or the US (11.8 liters), reflecting wine's niche role in South Africa's beverage culture amid a preference for beer and other spirits.
These figures cover all wine types (still, sparkling, etc.) and are driven by growing domestic demand, though exports remain a larger focus for the industry. Preliminary 2024 estimates suggest stability, with no major shifts reported yet.
For context, South Africa's wine production in 2024 was around 885 million liters, leaving a surplus for exports.
