Consumers are not abandoning alcohol, but they are becoming more deliberate about how, when and what they drink, according to a new consumer trends report from Ipsos and IWSR.
The report found alcohol category volume remains about 30 percent above early-2000s levels, with 76 percent of legal-drinking-age adults consuming alcohol. Gen Z participation also remains strong, with 74 percent reporting alcohol consumption.
A key shift is moderation. While drinking frequency has stayed relatively stable, consumers are having fewer drinks per occasion and increasingly incorporating no-alcohol beverages into their routines. Cost concerns, wellness goals and a desire to moderate alcohol intake are among the top reasons consumers say they are cutting back. Beer accounts for roughly 93 percent of global no-alcohol beverage volume.
For bars and restaurants, the findings suggest continued demand for low- and no-alcohol options that allow guests to balance social occasions with health and wellness goals.
At the same time, social connection remains a major driver of beverage consumption. The report found 35 percent of consumers cite social occasions as their primary motivation for drinking, while on-premise consumption has remained relatively stable as consumers continue to seek in-person experiences.
That trend aligns with the growing "experience economy," in which consumers are prioritizing memorable moments tied to sports, music, travel and other live events. More than 1 billion people are expected to attend live music and sporting events globally for the first time, up 20 percent from 2019.
Flavor and convenience are also reshaping purchasing decisions. More than half of consumers cite flavor as the top driver of ready-to-drink purchases, while 39 percent rank convenience among their leading purchase factors. RTDs remain the fastest-growing beverage alcohol category, and innovation has contributed more than half of beverage alcohol retail value growth over the past decade.
Consumers are also becoming more selective about where they spend. The report found premium-plus alcohol volume grew 5 percent annually from 2014 to 2024, suggesting consumers will still pay more for products and experiences they perceive as worthwhile.
Beer continues to gain share across the alcohol landscape. Beer and "beyond beer" beverages increased their share of total alcohol servings from about 46 percent in 2019 to more than 50 percent in 2026, fueled by interest in convenience, affordability and flavor innovation.
Finally, trust is becoming increasingly important. Seventy-seven percent of consumers say they are more likely to trust a new product from a brand they already know, while 72 percent say they trust brands overall.