The global alcohol industry has lost about $830 billion in value over the past four years as younger people drink less, Bloomberg reports. An index tracking 50 major beer, wine, and spirits companies is now 46% below its June 2021 peak.
“There is a structural change going on — people are drinking less,” Morgan Stanley analyst Sarah Simon told Bloomberg. Laurence Whyatt of Barclays said, “We’ve seen four times the impact of the financial crash on alcohol consumption. The market believes there’s been some sort of structural change and that we’re not going back to the growth rates that we had in the past.”
The decline is strongest among young adults. In 2024, 70% of non-drinkers in England were aged 16 to 24, and 35% of that group said they never drink. Across all adults, 24% abstained from alcohol in 2025, up from 19% in 2022. Gen Z are “more health-conscious and are increasingly adopting mindful drinking practices,” the Night Time Industries Association said, boosting demand for alcohol-free and low-alcohol drinks.
Major drinks companies have been hit. Diageo, Pernod Ricard, and Rémy Cointreau shares are at decade-low levels. Brown-Forman, Treasury Wine Estates, and China’s Kweichow Moutai have also fallen. “It is notable that in an industry where a lot of changes are occurring, suddenly there is also a lot of management change,” Simon said.
Producers are responding with new products and acquisitions, including Carlsberg’s non-alcoholic cider and Diageo’s purchase of Ritual Zero Proof. Jim Beam will pause operations at its Kentucky distillery in 2026 due to oversupply, though Suntory Global Spirits says layoffs are not planned.
Some investors see opportunity. Richard Cook of hedge fund Cook & Bynum said, “We don’t think that humans are going to stop drinking alcohol. The beer they sell is going to be more premium and higher margin over time.”
The shift shows a clear cultural change, with Gen Z leading the move toward alcohol-free and health-conscious lifestyles.