Major brewers and distillers including Diageo, Heineken, and Anheuser-Busch InBev are facing declining alcohol demand in 2026, driven by shifting consumer preferences toward health and wellness, as well as stricter regulations in key markets.
According to industry reports, global alcohol consumption has fallen by approximately 2% year-over-year in the first half of 2026. Diageo reported a 3% drop in net sales for its fiscal year ending June 2026, while Heineken saw a 1.5% decline in beer volumes. Anheuser-Busch InBev also noted a 2% decrease in global volumes, particularly in the United States and Europe.
Key factors include the rise of low- and no-alcohol beverages, which now account for 5% of the global beer market, up from 3% in 2020. Additionally, countries like Ireland and Lithuania have implemented stricter alcohol advertising and pricing laws. Health concerns, especially among younger consumers, are also reducing per-capita consumption.
In response, these companies are expanding their non-alcoholic product lines. Heineken launched Heineken 0.0 in more markets, and Diageo invested in non-alcoholic spirits. Anheuser-Busch has increased marketing for its Budweiser Zero brand.
