Global Alcohol Industry Braces for Decade of Consumption Decline

A 1% drop in global alcohol volumes is projected by 2035, marking a significant shift in market dynamics as long-standing giants struggle against shifting consumer habits. While emerging markets like India show signs of rapid expansion, the broader industry faces a persistent contraction that challenges traditional growth models.

Editorial·June 11, 2026·reads: 2,373

Market research firm IWSR anticipates a steady decline in demand across 160 tracked markets, signaling that global consumption will continue to shrink well into the next decade. Industry heavyweights such as Diageo and Anheuser-Busch InBev have already felt the impact, reporting diminished sales and falling stock valuations since 2023. These companies point to a convergence of pressures, including the escalating cost of living, evolving social behaviors, and the rise of weight-loss medications, which are effectively curbing consumer interest in spirits and beer.

Despite the overarching downward trend, the industry map is undergoing a seismic realignment. India is forecast to surpass the United States by 2032, claiming the position of the world’s second-largest beverage market behind China. Furthermore, secondary markets such as Mexico, Vietnam, and Colombia are expected to provide pockets of growth, partially offsetting the stagnation seen in more mature regions. Even with these localized gains, the global trajectory remains tilted toward lower volumes through 2031 and beyond.