The global alcohol industry has lost about $830 billion in market value over the past four years as consumers cut back on drinking, according to Bloomberg data, signaling a sustained downturn across beer, wine, and spirits producers.
Shares of the world’s largest alcohol companies have declined sharply since mid-2021. A Bloomberg index tracking roughly 50 publicly listed alcohol producers is now about 46 percent below its June 2021 peak, reflecting prolonged pressure across the sector.
Bloomberg reported that the decline coincides with changing consumer habits and increased scrutiny of alcohol consumption. The downturn has also unfolded amid higher interest rates that have constrained consumer spending, rising costs faced by producers, and trade-related pressures affecting global markets.
In China, alcohol demand has weakened alongside slower economic growth. Restrictions on alcohol consumption at official government functions have also reduced sales in one of the industry’s largest markets.
“There is a structural change going on — people are drinking less,” said Sarah Simon, an analyst at Morgan Stanley.
Market data cited by Bloomberg shows that many major alcohol producers have struggled to regain momentum since their 2021 highs, as lower volumes weighed on earnings and investor confidence.
Long-term consumption trends point to a broader shift. A Gallup survey cited by Bloomberg found that alcohol consumption in the United States fell to its lowest level since Gallup began tracking the data in 1939.
Public health warnings have intensified in recent years. The World Health Organization and the US Surgeon General have issued advisories highlighting health risks associated with alcohol consumption, including links to cancer.
Bloomberg reported that these factors have reshaped expectations for alcohol producers, a sector long viewed by investors as relatively resilient.
“We’ve seen four times the impact of the financial crash on alcohol consumption,” said Laurence Whyatt, an analyst at Barclays. “The market believes there’s been some sort of structural change and that we’re not going back to the growth rates that we had in the past.”
The scale of the market value losses and the length of the downturn indicate that the industry is facing continued pressure as reduced drinking levels persist across major markets.
