The global alcohol industry has lost $830 billion in market value over the past four years as younger generations drink less than their parents did, according to Bloomberg data cited by multiple financial news outlets .
A Bloomberg index tracking 50 major beer, wine and spirits producers shows the sector’s stock prices have fallen 46 percent from their June 2021 peak . The decline represents one of the steepest downturns in the industry’s recent history.
Morgan Stanley analysts described the drop as a “structural shift” in consumer behavior rather than a temporary market correction, with people drinking less alcohol overall .
Young adults are driving the change. Gallup polling from August 2025 found that alcohol consumption in the United States has dropped to its lowest level since the survey began in 1939 . Only 54 percent of Americans now report drinking alcohol, down from 67 percent in 2022 .
Since 2023, the share of millennials who drink has fallen by 10 percentage points, while Gen Z consumption is down by 9 percentage points . A separate survey of 2,000 American adults conducted in December 2025 found that 63 percent of Gen Z respondents have become less interested in alcohol since first trying it .
Health concerns rank as the primary reason. Four in 10 respondents who have reduced their drinking cited a desire to improve their health, while 36 percent said they dislike hangovers . The wellness industry, focused on sleep, fitness and mental health, has grown to $2 trillion in value since 2021 .
The shift extends beyond personal health to social habits. Twenty-eight percent of Gen Z respondents said they are deviating from social norms around drinking, and 31 percent see themselves as setting new trends . One in five Gen Z drinkers said they now prefer non-alcoholic alternatives .
Economic pressures also play a role. Housing costs, student debt and an 8.3 percent unemployment rate among 20- to 24-year-olds have made younger consumers more cautious about spending . Nearly half of Gen Z adults have delayed major purchases, and many live with parents .
Alternative products are gaining ground. Eighteen percent of Americans now consider THC-infused beverages “in” for 2026, while alcohol is seen as “out” by a similar share . Nearly half of respondents said THC products should be as socially accepted as alcohol, with Gen Z and millennials most supportive . The “California sober” lifestyle, which means abstaining from alcohol but using marijuana, is practiced by 48 percent of Gen Z adults .
The industry response has been swift. Dutch brewer Heineken announced in February 2026 that it will cut 6,000 jobs, nearly 7 percent of its global workforce, citing weak demand . Competitor Carlsberg began cost-cutting and layoffs in October 2025 .
Fourth-quarter data shows global beer sales fell 2.8 percent . Non-alcoholic beer volume, however, rose 175 percent between 2019 and 2024, and analysts predict it will become the world’s second-largest beer segment by the end of 2025 .
Major producers are adapting. Carlsberg launched a non-alcoholic cider. Diageo acquired Ritual Zero Proof, a non-alcoholic spirits brand. Campari began selling Crodino non-alcoholic aperitifs in the United States. LVMH’s Moët Hennessy took a stake in French non-alcoholic sparkling wine brand Brum .
Stock prices reflect the pressure. European giants Diageo, Pernod Ricard and Rémy Cointreau have fallen to decade lows. Constellation Brands, the maker of Corona beer, has dropped about 40 percent since Berkshire Hathaway built a position last year. China’s Kweichow Moutai is down more than 40 percent from its 2021 peak .
Leadership turnover has accelerated. Diageo, Rémy Cointreau, Campari, Treasury Wine Estates, Molson Coors and Suntory all changed chief executives in 2025. Moutai has had two chairmen leave in less than two years .
Not all analysts see permanent decline. The global alcoholic drinks market still generated $1.71 trillion in revenue in 2024, up from $1.60 trillion in 2023, according to Statista data . The industry is projected to reach $2.1 trillion by 2028 .
Some investors are buying the dip. Cook & Bynum, a US value hedge fund, has increased holdings in Brazilian brewer Ambev and Peruvian beer company Backus, arguing that premium beer sales in emerging markets will grow over time .
But others remain cautious. Barclays analysts said the current decline in alcohol consumption is four times more severe than during the 2008 financial crisis . One analyst compared the industry’s uncertainty to that of tobacco five years ago, noting that while alcohol has existed for 7,000 years, “many things could be changing” .