Europe"s alcohol market shifts: the rise of moderation and premium drinks

In recent years, Europe has witnessed a significant shift in consumer preferences within the alcohol market, driven by a growing trend towards moderation and the rise of premium drinks. Producers in France, a leading exporter of alcoholic beverages, reported a concerning decline in cognac exports, which fell by over 21% last year. This decline is compounded by an anti-dumping investigation launched by China, potentially leading to tariffs on cognac. The trend towards moderation is not limited to Europe; it is also evident in markets across Asia and Latin America, which together account for 70% of global alcohol sales. In 2023, the consumption of non or low-alcohol drinks increased by 5%, reaching a market value exceeding €11 billion, with expectations of continued growth. Despite this, the non and low-alcohol segment remains a small part of the overall market, projected to represent nearly 4% by 2027. Changing social dynamics have also influenced drinking habits, with a shift from high-volume, low-priced alcohol consumption to more family-oriented experiences centered around food and social gatherings. This evolution is particularly noticeable in the UK, where traditional pub culture has transformed. Interestingly, versatile spirits like gin and cocktails have seen a rise in popularity, particularly among younger consumers influenced by social media. The market is adapting with a growing range of ready-to-drink mixes, appealing to Gen Z's preference for lower-volume, high-quality beverages, indicating a promising future for premium and moderate drinking options.