71% of Europeans consume less alcohol, and a quarter of young people stopped to purchase it

More refreshing, healthier, and better suited to individual lifestyles. Summer beverage trends, analyzed by Circana, had already hinted at the current state of the beverage market, and data released today, again by Circana, at the first edition of “Beverage Forum Europe”, in London, confirms a decline in alcoholic drinks, both in sales and consumption. A new analysis, referring to August 2025, reveals that 71% of consumers are buying, storing, or consuming less alcohol, while nearly a quarter of young people aged 25 to 35 have completely stopped purchasing alcoholic beverages. The total beverage market in Europe has reached a value of 166 billion euros, representing almost a quarter (23%) of the total demand for fast-moving consumer food products across the six largest European markets (France, Germany, Italy, the Netherlands, Spain, the United Kingdom). While overall sales value grew by 2.1% and volume increased by 0.6% year-on-year, the figures for alcoholic and non-alcoholic segments differ: the alcoholic segment declined by 1.8% in value, attesting at 68 billion euros, while the second grew by 5.1%, reaching 97 billion euros.
Non-alcoholic or low-alcohol beverages now account for nearly 60% of category sales, firmly positioning themselves - according to Circana - as the future of the sector. This is supported by consumer feedback, which mentions being “more refreshing” (55%), “healthier, with plant-based ingredients and better taste” (27%), “better for my health” (22%), “better suited to my lifestyle” (21%) as the main reasons in choosing an non-alcoholic beverage instead of an alcoholic one.
“The message for brands is clear”, says Ananda Roy, senior vicepresident of Global Thought Leadership and Strategic Insights at Circana: “continuing with the same strategies as in the past is no longer a growth plan. Growth won’t come from short-term fixes, but from targeted reinvention. As new consumers, needs, and consumption occasions redefine the market, category leadership will belong to those who strengthen their capabilities, innovate with purpose, integrate sustainability, and engage buyers in credible and lasting ways”.
According to the research, several factors are leading to a structural reshaping of the European beverage market: for example, changes in lifestyles and consumption occasions which are redefining the meaning of beverages. Accelerated innovation in non-alcoholic segment, compared to alcoholic drinks, which is significantly impacting the market, is equally recognized, but also sustainability theme is another key factor, now seen not just as compliance but as a commercial opportunity (and, which non-alcoholic sector is successfully embracing). According to Circana concludes that the alcohol sector needs a true revolution in product design, pricing, distribution, and consumer engagement, not just short-term promotions: this will make wines and spirits relevant and desirable again in a context where moderation is redefining demand.