Circana: spending on alcoholic drinks decreases, while purchases of healthier beverages increase

According to the analysis carried out by Circana, over the past year beverage sales increased by 2,9% in the six leading European grocery markets, but while spending on alcoholic drinks decreased by 0,8%, purchases of alternatives with low or no alcohol content increased by 7,3%.

Alcoholic drinks lose ground

Higher spending on sports drinks, energy drinks and yoghurt-based drinks, together with the availability of a wider range of products for increasingly health-conscious consumers, contributed to the growth of 5,4% in non-alcoholic beverage sales, which reached 109 billion euros, and of total beverage sales, which reached 180 billion euros.

Sales of beer, cider, wine and spirits decreased by 0,9%, 1,2%, 1,5% and 2,2% respectively. 43% of consumers, and half of those aged between 25 and 39, told Circana that they were [[ARTW_HTMLOPEN_AAAP]​​reducing their alcohol consumption by buying less, postponing purchases or giving it up altogether. 44% of all consumers said they were buying more bottled water, 31% more juices and smoothies, and 29% more tea and coffee.

Only 15% said they were buying more alcoholic drinks, despite the significant use of promotions: over the course of the year, around 41% of beer and 37% of alcoholic drinks were sold on promotion, compared with just 25% of beverages overall.

Circana also found that new products in the beverage sector generated 242 million euros in additional sales over the past year. Of these, 161 million euros came from milk-based drinks, while 32 million euros each came from low- or no-alcohol products and bottled water.

Sales are growing, but only in value terms

Although spending on beverages increased over the past year, the volumes actually sold grew by just 0,5%, as the average price increase of 2,3% contributed significantly to the growth in sales value. Beverage sales in the United Kingdom increased by 3,2%, reaching 54 billion euros. The country accounts for 30% of total spending across the six leading European markets, but only 19% of the volumes sold.

The increase in prices also contributed to the growth in spending of 2,9% in Italy and 2% in the Netherlands, despite purchased volumes remaining stable in both countries. In Spain, the picture was more balanced: prices increased by 2,4%, while purchased volumes grew by 2,6%. In France, by contrast, the increase in spending was driven mainly by increased purchases: volumes sold rose by 3,3%, compared with a price increase of just 0,4%. Germany was the only one of the six countries to record a decline in purchased beverage volumes, down by 2,7%, while prices increased by 4%.

Some products nevertheless continued to grow despite the increase in prices. Volumes of yoghurt-based drinks sold increased by 12,3%, those of ready-to-drink spirits by 12,9%, while still water and plant-based drinks both recorded growth of 5,2%.

The overall beverage market picture improved in the second quarter of 2026, when average prices fell by 0,2% and the volumes of beverages sold increased by 1,6%.

Circana's data also show that private-label products now account for 35% of spending on beverages. Retailer brands are gaining ground in categories including coffee, wine and champagne, and milk-based drinks.

The commentary

"It is not yet the end for the alcoholic drinks sector," says Ananda Roy, senior vice president, strategic growth insights at Circana. "Over the past five or six years, starting with the pandemic, alcohol has lost popularity. This has encouraged the availability of a wider range of alternatives and healthier products, giving consumers greater choice over what to drink at home and on social occasions. In particular, younger people consume far less alcohol, and there are no signs that this attitude will change as they get older. The growing availability of non-alcoholic drinks and lighter alternatives is simply becoming an increasingly normal part of everyday consumption. It is not yet the end for alcohol producers, but they will have to do much more than reduce prices. It will be necessary to develop products with a lower alcohol content, fewer sugars and fewer calories, enabling beer, wine and spirits to remain relevant in a context where consumption habits are changing."

This article was translated from the original Italian version with the assistance of artificial intelligence. In case of discrepancies, please refer to the original Italian version.