71% of Europeans consume less alcohol. And 25% of young people do not buy it at all

The decline in wine and spirits consumption, led by young people, has been talked about for some time, and now there is confirmation based on purchase data from Circana at European level, presented at the Beverage Forum Europe in London. According to the market analysis company, the European beverage industry is "undergoing a structural reorganisation". A new generation of consumers is gradually moving away from alcohol," Circana explains, "in favour of innovative and healthier alternatives.

The total beverage market in Europe reached a value of EUR 166 billion, accounting for almost a quarter (23%) of total FMCG demand in the six largest European markets analysed by Circana (France, Germany, Italy, Netherlands, Spain, UK).

While the overall value of sales grew 2.1% and volume increased 0.6% year-on-year, the real news is the divergence:alcoholic beverages slipped 1.8% in value to EUR 68 billion, while non-alcoholic beverages grew 5.1%, reaching EUR 97 billion. With soft drinks, functional and low or zero alcohol options now accounting for almost 60% of sales in the category.

Consumers cite being 'more refreshing' (55%), 'healthier with plant-based ingredients' and 'better in taste' (27%), 'healthier' (22%) and 'suited to my lifestyle' (21%) as the main reasons for switching from alcohol to alternatives such as functional drinks, protein drinks, kombucha and low/zero alcohol options with beneficial effects on mood.

"The future of growth is firmly in the hands of non-alcoholic innovation. The message for brands is clear: continuing with the same strategies of the past is no longer a growth strategy. This will not come from short-term fixes," comments Ananda Roy, Svp Thought Leadership at Circana, "but from strategic reinvention. As new consumers, needs and consumption occasions are redefining the market, category leadership will belong to those who strengthen their capabilities, innovating with purpose, integrating sustainability and engaging buyers in credible and lasting ways