Alcohol consumption fell at a compound annual rate of 2% from 2019 to 2025, driven by health concerns and tighter household budgets, wiping hundreds of billions of dollars from major drinks companies' market value.

From 2019 to 2025, consumption of alcohol measured by servings fell at a compound annual rate of 2%, according to analysis from IWSR, a drinks market research firm. The IWSR data covered 21 countries and global duty-free retail, representing about 75% of the worldwide market, and included all alcohol categories—beer, wine, spirits, hard cider, and RTDs (ready-to-drink cocktails).

The decline is part of a global trend of falling alcohol demand that started a decade ago, according to the World Health Organization. Consumption rose 2.3% from 2020 to 2021 during the Covid-19 pandemic, but fell again as of 2022, dropping 2.8% in 2025 compared with 2024.

Health concerns and tighter household budgets are prompting people to drink less, forcing producers to cut costs, replace executives, and roll out new offerings.