A major shift in drinking habits among younger people has wiped out about $830 billion from the global alcohol industry. The decline comes as Gen Z and millennials drink less than previous generations.
A Bloomberg index tracking about 50 major alcohol companies has fallen sharply. The index is now 46 percent below its peak in June 2021. This shows how much investor confidence in the sector has weakened.
Some of the world’s biggest alcohol companies have seen their stock prices drop. These include Diageo, Pernod Ricard, and Brown-Forman. These companies own well-known brands like Johnnie Walker, Smirnoff, and Jack Daniel’s.
Experts say changing consumer behavior is the main reason behind the decline. Many young people are choosing healthier lifestyles and avoiding alcohol. Health warnings from groups like the World Health Organization have also influenced public opinion.
Recent surveys show fewer young adults are drinking. A Gallup poll found that only about half of Americans under 35 now drink alcohol. This is one of the lowest levels ever recorded.
Sales data also shows Gen Z is not driving alcohol demand. In 2025, Gen Z accounted for just 4 percent of alcohol sales in the United States. Older groups like Gen X and baby boomers made up most of the market.
At the same time, non-alcoholic drinks are becoming more popular. Many consumers are choosing mocktails, alcohol-free beer, and wellness drinks. Companies are now investing more in these products to keep up with changing demand.
The global alcohol market is still worth over $1.8 trillion, but the industry faces uncertainty. Companies may need to adapt quickly as younger generations continue to move away from traditional drinking.
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