Recent data from Circana, presented at the inaugural Beverage Forum Europe in London, confirm a major transformation underway in the European beverage market.
The trends observed in summer 2025 have become clear indicators of a long-term shift: alcohol consumption is declining across all key demographics, while non-alcoholic and low-alcohol alternatives are driving growth.
According to Circana’s analysis referring to August 2025, 71% of European consumers report buying, keeping, or consuming less alcohol. Even more striking is the behavior among younger generations — almost one in four consumers aged 25–35 have stopped purchasing alcohol altogether.
A Market in Transformation
The total European beverage market now stands at EUR 166 billion, accounting for nearly 23% of total demand for fast-moving consumer food products across six major economies: France, Germany, Italy, the Netherlands, Spain, and the United Kingdom. Despite a 2.1% increase in overall value and a modest 0.6% rise in volume year-on-year, the split between alcoholic and non-alcoholic segments tells two very different stories.
- Alcoholic beverages declined by 1.8% in value, reaching EUR 68 billion.
- Non-alcoholic drinks, by contrast, grew by 5.1%, hitting EUR 97 billion.
Non-alcoholic and low-alcohol products now make up nearly 60% of total category sales, suggesting that the market’s future lies firmly in this expanding segment.
Health, Lifestyle, and Purpose
Consumer motivation plays a key role in this transition. The Circana report highlights that consumers perceive non-alcoholic drinks as:
- “More refreshing” (55%)
- “Healthier with plant-based ingredients and better tasting” (27%)
- “Healthier overall” (22%)
- “Better suited to my lifestyle” (21%)
This combination of health consciousness, functional benefits, and personal identity is driving the surge in alcohol-free beverage consumption.
A Call for Reinvention
As Ananda Roy, Circana’s Senior Vice President of Global Thought Leadership and Strategic Insights, emphasizes:
“Continuing in the same old ways is no longer a growth strategy. This will not come with short-term fixes, but from targeted reinvention. As new consumers, needs, and consumption occasions are redefining the market, category leadership will belong to those who strengthen their capabilities, innovate with purpose, integrate sustainability, and engage shoppers in credible and lasting ways.”
The Future Belongs to Innovation
Circana’s research points to several structural factors reshaping the European beverage market. Changes in lifestyle patterns and consumption occasions are redefining what beverages mean to consumers. The faster pace of innovation in the non-alcoholic sector, compared to alcoholic beverages, is already having a significant impact.
Furthermore, sustainability is emerging as a major growth lever — not merely as a compliance requirement but as a commercial opportunity. Alcohol-free brands are particularly adept at integrating eco-conscious practices into their identity, strengthening their appeal among younger and health-aware consumers.
For the alcoholic beverage industry, the message is clear: a true revolution is needed — from product design and pricing to distribution and consumer engagement. Only by reinventing their strategies can traditional alcohol brands regain relevance and desirability in a marketplace increasingly defined by moderation, wellness, and innovation.
Source: WineNews