10 data-backed insights shaping the drinks industry
As the alcohol industry grapples with rising complexity, new data from IWSR identifies the macro trends driving change. From selective premiumisation to digital disruption and consumer moderation, db breaks down how to navigate a market in flux.
IWSR data shows that premiumisation persists globally, but is becoming more fragmented. Premium-and-above volumes (excluding national spirits) grew by +3% in 2024, led by beer and driven primarily by emerging markets such as South America, Africa & the Middle East and parts of Asia. Europe and North America, by contrast, were more muted.
Premiumisation, but not as we know it
Premium purchases are now defined less by status, more by perceived value, occasion and personal alignment. The cocktail moment continues to underpin this trend, with IWSR forecasting global RTD cocktail and long drink volumes to double between 2019 and 2029 – and grow by up to +400% in North America alone.
Lifestyle changes disrupt traditional drinking habits
As revealed in IWSR’s Global Trends Report 2025, changing consumer priorities are reshaping how people engage with alcohol. Total beverage alcohol volumes declined by -1% globally in 2024, with the US and China among the hardest-hit markets.
While economic caution remains a factor, many consumers are choosing to drink less on a more permanent basis. At-home occasions, digital experiences and more introspective consumption moments are becoming the norm.
Travel retail volumes, however, grew by +3% in 2024, a modest rebound, driven by demand for distinct, value-led experiences.
E-commerce finds its rhythm
E-commerce remains a key growth channel, with global alcohol sales rising +2% in value in 2024. IWSR identifies Asia-Pacific as a core driver, having posted a +4% gain last year.
The shift towards digital consumption is also cultural. Younger LDA drinkers increasingly favour brands aligned with storytelling, transparency and lifestyle authenticity. RTDs are especially responsive to these dynamics, given their convenience and suitability for moderated drinking occasions.
Celebrity-led launches, while still frequent, are no longer a guaranteed success. Authenticity now trumps name recognition.
Earlier drinking occasions gain momentum
Affordability and changing social habits are pushing consumers toward earlier, lower-key drinking moments, notably the enduring appeal of the aperitivo. Spritzes continue to thrive.
On-trade volumes declined between 2019 and 2024 across all global regions except Africa & the Middle East, where growth reached +4%, according to IWSR. At the same time, at-home settings are replacing or mimicking traditional on-trade experiences, from casual dinners to cocktail hours.
DIY social settings, including home bars and curated ‘third spaces’, are becoming more prevalent.
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Moderation becomes mainstream
Moderation is no longer a niche, it’s a fundamental shift in how people drink. IWSR data shows total no-alcohol volumes grew by +9% in 2024, led by beer but with other categories gaining momentum.
In every region except Asia-Pacific, where China’s beer market continues to weigh on figures, no and low alcohol growth outpaced full-strength products. The rise of ‘zebra striping’ (alternating between full-strength and zero-ABV drinks) is further evidence of a shift in behaviour rather than a passing trend.
Local pride and ethics reshape brand loyalty
Consumer values are changing rapidly, and brand provenance is playing an increasingly influential role. In India, IWSR reports that domestic single malts have overtaken Scotch sales, driven by both national pride and perceptions of value.
Ethical concerns, especially around sustainability, remain high among Gen Z and Millennial consumers. While cost pressures persist, these demographics are still willing to pay more for brands that align with their values, provided they feel authentic.
Value now means versatility
Downtrading is evident, but it’s not solely about cheaper options. Today’s value-conscious consumers are looking for versatility, reliability and quality at a fair price.
The perception of value is now more about experience and relevance than status or luxury. IWSR data underlines how flexible formats and price points have become essential tools for navigating consumer expectations.
Digital marketing enters a new phase
IWSR says the growing influence of digital tastemakers and social figures, particularly in Asia-Pacific and North America. As storytelling becomes a key differentiator, brands that adapt to this new language and deliver substance behind the image stand to gain.
RTDs again emerge as a beneficiary here, well-suited to younger audiences and the visual nature of social media. Digital authenticity, rather than traditional brand building, is increasingly defining success.
Global trade remains volatile
Ongoing geopolitical instability, trade disruption and supply chain complications continue to impact the drinks industry. Even as inflation cools, IWSR finds consumers are prioritising essentials over discretionary categories such as alcohol.
Trade agreements offer mixed results: the UK-India deal will support Scotch exports to India, but new tariffs in the US present a challenge. The net effect is a more fragmented and unpredictable global market.
Regulation and public health on the rise
Stricter alcohol regulation and public health messaging are gaining traction, especially in countries where trust in government advice is high. IWSR pinpoints China, India, South Africa and much of Latin America as regions where these pressures are already influencing consumption patterns.
To remain resilient, brands must monitor regulatory shifts closely and be prepared to adjust rapidly, from product formulation to messaging and packaging.
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