Drink sales rose by 2.9% across Europe's six largest grocery markets last year, even as shoppers continued to reduce alcohol consumption and spent more on a new wave of beverages designed for social occasions and healthier lifestyles. Spending on alcohol fell by 0.8% in the UK, France, Germany, Italy, the Netherlands and Spain, according to the latest analysis of the FMCG market by Circana, while sales of low- and no-alcohol alternatives increased by 7.3%.
Non-alcoholic drinks outperform alcohol
Increased spending on sports, energy and yoghurt-based drinks, driven by health-conscious consumers taking advantage of a wider product range, helped lift non-alcoholic drink sales by 5.4% to €109bn and total beverage sales to €180bn. Beer, cider, wine and spirits sales fell by 0.9%, 1.2%, 1.5% and 2.2% respectively.
Circana reported that 43% of shoppers, and half of 25- to 39-year-olds, said they were cutting back on alcohol by buying less, postponing purchases or giving up altogether. Meanwhile, 44% said they were buying more bottled water, 31% more juices and smoothies, and 29% more tea and coffee. Just 15% said they were buying more alcoholic drinks.
Discounting fails to reverse decline
This shift occurred despite heavy discounting, with around 41% of beer and 37% of alcoholic drinks sold on promotion during the year, compared with only 25% of beverages overall. Ananda Roy, senior vice president of strategic growth insights at Circana, said: “Alcohol has been declining in popularity in the five or six years since the pandemic and this has now led to a wider range of alternatives and healthier products, which give us much more choice about what we drink at home and when we socialise.
“Younger people in particular are drinking much less alcohol and there is no evidence this will change as they get older, as the growing mix of adult soft drinks and lighter alternatives is simply becoming an increasingly normal part of everyday drinking.
“It’s not game over for alcohol manufacturers, but they need to do much more than cut prices and instead look at lighter, lower-sugar and lower-calorie products that can help beer, wine and spirits stay relevant as our drinking habits change.”
New products and price rises drive growth
Circana also found new beverage products generated an extra €242m in sales last year, including €161m from dairy drinks and €32m each from low- and no-alcohol products and bottled water. While spending on drinks across Europe rose, the amount actually sold increased by just 0.5%, as average price rises of 2.3% drove much of the sales growth.
UK beverage sales rose by 3.2% to €54bn, accounting for 30% of spending across Europe’s six biggest markets but just 19% of the amount sold. Some products continued to grow despite higher prices, with the amount of yoghurt-based drinks sold rising by 12.3%, ready-to-drink spirits by 12.9%, and still water and plant-based drinks by 5.2% each.
The beverage market improved during the second quarter of 2026, when average prices fell by 0.2% and the amount of beverages sold rose by 1.6%. Circana’s data also showed own-label products now account for 35% of beverage spending, with retailer brands gaining ground in categories including coffee, wine, champagne and dairy drinks.
