The global alcohol industry has reportedly lost $830 billion in market value over the past four years. According to a study published by Bloomberg, which surveyed 50 of the world’s largest beer, wine, and spirits companies, the sector’s value now sits 46 percent below its record high reached in June 2021.
Younger Generations Driving the Shift
Analysts point to changing habits among younger people as a key reason for the decline. Many are adopting more health-focused lifestyles and drinking less alcohol overall. Morgan Stanley analyst Sarah Simon told Bloomberg, “There is a structural change going on – people are drinking less.”
NHS Data Shows Rise in Non-Drinkers
Figures from the Health Survey for England reveal that 70 percent of non-drinkers in 2024 were aged between 16 and 24, while the lowest proportion of non-drinkers was found in the 55 to 64 age group. Statistics also show that 35 percent of 16 to 24-year-olds went completely teetotal in 2024.
Record Levels of Adult Abstinence
Across all age groups, abstinence has also risen. In 2025, a record 24 percent of adults reported not drinking alcohol at all, marking a 19 percent increase since 2022.
Analysts See a Long-Term Structural Change
Laurence Whyatt, an analyst at Barclays Plc, described the trend as having a larger impact than 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,” he said.
Impact on Nightlife and the Night Time Economy
The Night Time Industries Association (NTIA) has stated that these shifting drinking habits are having a “profound impact” on the UK’s night time economy. While Gen Z are becoming more health-conscious and practicing mindful drinking, demand for alcohol-free and low-alcohol options is rising as a result.
Read the full study from Bloomberg here.