Circana: ‘More of the same’ not growth strategy
“‘More of the same’ is no longer a growth strategy,” said a Circana executive, as research suggests Europe’s beverage market is in the midst of a structural reset.
Data and insights company Circana surveyed approximately 2,000 people for its latest study, and announced the results at the Beverage Forum Europe 2025.
The data showed younger consumers were shunning alcohol, instead opting for ‘innovative, healthier’ alternatives.
According to Circana, 71% of consumers are buying, stocking or consuming less alcohol.
Plus, nearly one in four consumers aged between 25 and 35 years old have stopped buying alcohol altogether.
Ananda Roy, senior vice-president thought leadership at Circana, said: “The message to brands is clear: ‘more of the same’ is no longer a growth strategy. Growth will not come from short-term disruption but from strategic reinvention.
“As new consumers, needs, and occasions reshape the market, category leadership will belong to those who strengthen their capabilities, innovating with purpose, embedding sustainability, and engaging shoppers in credible and lasting ways.”
While total beverage sales in Europe have grown year on year, alcoholic beverages have dropped by 1.8% in value to €68 billion (US$78.6bn). On the contrary, non-alcoholic beverages grew by 5.1% to €97bn (US$112.2bn).
Circana said soft drinks, functional blends and no/low comprised nearly 60% of total beverage sales in Circana’s biggest European markets: France, Germany, Italy, the Netherlands, Spain and the UK.
Additional trends highlighted by Circana include new occasions for drinking, advising brands should adapt their portfolios to keep up with evolving consumption trends.
Growth in categories outside of traditional alcohol is accelerating, and will impact the wine and spirits sector by 2035, Circana forecast. Furthermore, sustainability was highlighted as a growth driver.
Circana also said innovation with purpose, not short-term promotions, would make wine and spirits ‘relevant and desirable again’.
Earlier this year, IWSR Market Analysis released new data that challenged preconceptions about Gen Z’s abstinence.
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