The European beverage market is undergoing a profound structural change, driven by a new consumer profile increasingly oriented towards healthy, sustainable products with low or no alcohol content. The latest analysis by Circana, presented at the Beverage Forum Europe 2025, shows that 71% of Europeans report buying, storing, or consuming less alcohol than in the past, while nearly a quarter of young people aged 25 to 35 have completely stopped purchasing alcoholic beverages. As a result, the turnover of non-alcoholic alternatives is growing: here are all the figures and trends in the six main European markets.
Non-Alcoholic and Functional Beverages Drive the Beverage Market
The beverage sector in the six main European markets (France, Germany, Italy, Netherlands, Spain, and the United Kingdom) has reached a total value of €166 billion, equal to 23% of the total demand for fast-moving consumer goods. While overall value grew by 2.1% and volumes by 0.6%, a clear divergence emerges between segments: alcoholic beverages recorded a 1.8% decline in value, stopping at €68 billion, while non-alcoholic beverages grew by 5.1%, reaching €97 billion.
This trend confirms that the future of growth is now firmly in the hands of non-alcoholic innovation. Functional beverages, products with low or no alcohol content, and drinks enriched with health-promoting ingredients now represent almost 60% of total sales in the sector.
Alcoholic Beverages Down, Alternatives Up: The Reasons Behind the Change
The reasons driving consumers towards less alcoholic choices are multiple and reflect both a cultural and lifestyle evolution. 55% of respondents cite greater thirst-quenching ability and a feeling of freshness as the main reason for the change, while another 27% point to the presence of natural or plant-based ingredients and a taste considered better than traditional beverages. For 22% of consumers, the choice is linked to the search for healthier products, while 21% say they prefer alternatives more consistent with an active and balanced lifestyle.
Among the most appreciated new options are high-protein functional beverages, kombucha, and low or zero-alcohol versions of wines, beers, and cocktails, often enriched with ingredients capable of improving physical well-being or mood.
According to Ananda Roy, SVP Thought Leadership at Circana, the ongoing transition requires a true strategic reinvention. “Continuing with the same strategies as in the past is no longer a growth strategy,” she states. “Brands must innovate with a clear purpose, integrate sustainability, and build authentic relationships with consumers.”
According to Roy, beverage companies will need to strengthen their innovation capabilities, acting not only on the product but also on design, pricing, distribution, and communication. Short-term promotions will no longer be enough: a long-term approach will be necessary to restore relevance, credibility, and desirability to wines and spirits.
Growth Directions According to Circana
Circana identifies five fundamental directions for the growth of the European beverage sector. The first concerns the emergence of new consumers and new consumption occasions: changes in lifestyles are redefining the very concept of beverages, requiring brands to adapt to different contexts, from everyday wellness to mindful leisure.
A second key point is the growth of adjacent segments. Categories outside traditional alcohol are accelerating and will have an increasing impact on the wine and spirits sector, where low and no-alcohol versions are opening new commercial opportunities.
The third pillar is sustainability, which is no longer just a compliance requirement but a true growth driver. Attention to environmental responsibility and traceability, however, remains limited by the availability of raw materials and costs. Brands that can reconcile both aspects will have a decisive competitive advantage.
The fourth direction concerns purpose-driven innovation, which must translate into a real transformation of the product, distribution channels, and the language companies use to communicate with the public. Finally, Circana highlights how moderation is redefining demand: the success of low or no-alcohol beverages marks a structural shift towards more conscious consumption. By 2045, overall demand for alcoholic beverages will be reshaped, but brands that can enhance heritage, craftsmanship, and authenticity will continue to hold a prominent position.
Alcoholic Beverages Decline: A Challenge for the Entire Wine and Spirits Supply Chain
The structural decline of alcohol in Europe does not represent just a market contraction, but a paradigm shift involving the entire supply chain, from production to distribution. For the wine and spirits sector, the key will be to combine tradition and innovation, intercepting the needs of a consumer who seeks authenticity, wellness, and environmental responsibility.
As Circana concludes, the next phase of European beverages will not be defined by who produces the most, but by who best communicates with the new conscious consumer, with a coherent language and a credible value proposition.
