This is a good question, and as this is my industry, I feel that for once, I'm actually the expert and can comment with some authority!
Alcohol consumption is definitely declining, and in fact has been for about 30 years now. People just ain't drinking like the used to. You probably drink less than your dad, and your kids probably drink less than you.
For beer specifically, this usually means a roughly 1-1.5% volume decline each year.
But this year, it's 4%...
What is also notable, is that in past years, this has been outweighed by a trend towards premiumization.
A boomer might spend 20 bucks on 24 cans of bud. A Millenial, used to spend 20 bucks on 4 cans of pretentious craft IPA.
A boomer might go to a dive bar 4 nights a week, whilst the millenial goes to a fancy cocktail bar twice a month. Less volume, similar dollars.
For beer, this has generally meant less volume, but more revenue, with a big focus on premium brands, which are the areas that were growing.
Until about 2024, and even more so in 2025.
People now are not just drinking less, they're straight up spending less. Volumes are down AND people are trading down to economy brands so revenue is down. Some of our economy portfolio actually pegged big volume jumps this year, for the first time in at least a decade.
We also see big declines in the 'on-trade' i.e bars, clubs, stadiums, and a shift towards lots of large bulk packs, typically in supermarkets. We also see a big jump in singles in Convenience. This generally means the wealthier people feeling the pinch are staying home and buying in bulk. Whilst the poor people are staying home and buying a small amount for small money in impulse occasions. Neither are generally indicators of economic confidence - the last time we saw this trend was late '08...
I think that's not just a systemic 'people don't drink now' trend, that's a cyclical trend, because people are broke. That seems to be the industry consensus as well.
I'm sure some regions are feeling good, and I won't detract from your lived experiences, but I tend to like the nationwide macro analysis based on data more here. Cuts out a lot of the local 'all my (rich) friends are real happy', or the boom/bust variance on local geographies. The trends I posted above don't paint a rosy story there, and based on our sales data, discussions with various other FMCG acquaintances, etc, I'm inclined to believe 'em.
Oh, and a depressing thought on GDP growth to end my doom 'n' gloom:
https://fortune.com/2025/10/07/data...rst-half-2025-jason-furman-harvard-economist/