Increased spending on sports, energy and yoghurt-based drinks, as increasingly health-conscious consumers took advantage of a wider range of products, also helped lift non-alcoholic drink sales by 5.4% to €109 billion and total beverage sales to €180 billion.

Beer, cider, wine and spirits sales were down 0.9%, 1.2%, 1.5% and 2.2% respectively. Forty-three percent of shoppers, and half of 25- to 39-year-olds, told Circana they were cutting back on alcohol by buying less, postponing purchases or giving up altogether.

Forty-four percent of all shoppers 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. This is 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.

Speaking following his keynote at the Beverage Forum on Oct. 1, 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 socialize.

“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,” Roy continues. “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.”

Circana also found new beverage products generated an extra €242 million in sales last year, including €161 million from dairy drinks and €32 million each from low- and no-alcohol products and bottled water.

While spending on drinks across Europe rose last year, the amount actually sold increased by just 0.5%, as average price rises of 2.3% also drove much of the sales growth.

UK beverage sales rose by 3.2% to €54 billion, accounting for 30% of spending across Europe’s six biggest markets but just 19% of the amount sold. Higher prices also pushed spending up by 2.9% in Italy and 2% in the Netherlands, despite the amount bought remaining flat in both countries.

It was a more even picture in Spain, where prices rose 2.4% and the volume bought increased 2.6% and in France, where the growth in spending came mainly from people buying more, with the amount sold up 3.3% while prices increased by just 0.4%.

Germany was the only one of the six countries to see the volume of beverages bought fall, dropping 2.7% as drinks prices rose by a steeper 4%.

However, some products continued to grow despite higher prices, with the amount of yogurt-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 picture for the beverage market as a whole 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 found own-label products also now account for 35% of beverage spending, with retailer brands gaining ground in categories including coffee, wine and Champagne and dairy drinks.