Here’s something surprising: the world is drinking less alcohol. It’s surprising because alcohol is always strictly controlled and regulated. There are age limits, massive taxes, licenses and sales, advertising restrictions and in some places – even total prohibition. Hence, one would assume alcohol is one of those vices that if left unchecked, humans will go crazy over it. And yet, global trends are clear. Sales are dropping. People don’t want to drink anymore. In the USA Gallup survey revealed that in 2025, only 54% of Americans drink at all, a 90-year low.. According to global reports, total beverage alcohol volumes across the top 20 markets declined by about 1% in 2024 compared to the previous year. In the USA, volumes were down 4%. Some categories are particularly hit hard. Wine consumption has seen a particularly steep decline — down about 20%+ compared to a few years back. Even in wine and beer loving Europe, market research found that a whopping 71% of consumers are drinking less or cutting out alcohol altogether.
This isn’t just a blip — it’s a pattern across generational lines and global markets.
There is an exception to this global trend – India. India is seeing alcohol sales volumes grow around 7% annually. Some of it is due to our low base. Per-capita consumption of alcohol in USA/Europe is close to 8-9 liters per year. India is around 3-litres per year. So there’s some catching up happening. Also, we have a large young population, which means a lot of people entering drinking age every year. Maybe eventually, alcohol sales will peak in India and start seeing declines as well. There are early signs of change in certain urban segments in India too. In big cities, there are pockets where beer and traditional liquor consumption is flattening or dipping among younger Gen Z drinkers.
However, the important question to ask is: Why is the world drinking less?
Here are some factors at play that are reshaping habits:
1) Health and Wellness Matter More
People today are more health-conscious than ever. Fewer cigarettes, more yoga, more green juice — and less booze. Articles in leading health forums highlight a growing preference for wellness over hangovers.
2) Constant surveillance society
One of the effects of drinking (and the reason why people do it) is it helps people open up and let go. It releases the normal filters of conversation and behavior that our brain applies in normal, sober life. Hence, you can dance like an idiot on restaurant tables or speak nonsense after a few drinks, something you would never do if not under the influence. However, we no longer live in a “let go” society. There’s a video camera in every pocket. You can be recorded and shared making a fool of yourself. Or someone else might simply self-record a video giving an account of what you were upto last night in the pub. Bad dates to bar brawls to awful dancing to puking to passing out – all part of alcohol, can bring tremendous shame if shared with the world. You can also lose your job, get cancelled or have other debilitating outcomes. The conclusion, particularly amongst gen-Z : Don’t drink. (Sidenote: Let’s just say I am glad there were no smartphones when our booze fueled mayhem parties back in college.)
3) Social Life Has Shifted Online
Instead of crowded bars and pubs, people socialize through screens. The world glued to phones isn’t just a cliché — it’s a behaviour pattern. And phone-to-phone socializing doesn’t require, or often even allow, a beer in hand.
4) New Science on Alcohol Damage
Recent studies have made clear that alcohol is bad — even in moderation. Major health agencies have warned that no level of drinking is truly “safe,” and that message resonates, especially with younger cohorts.
5) The GLP-1 Effect
Here’s the weirdest one: weight-loss drugs like Ozempic (a GLP-1 medication) have had the side effect of reducing alcohol consumption. Nearly half of people taking these drugs report cutting back on alcohol — and most continue to drink less even after stopping the drug.
So a cocktail of health, psychology, convenience and medication could be quietly reshaping drinking culture.
What does this shift mean for society? There are good and not-so-good outcomes.
The big (and these are really big) positives are 1) Better health outcomes (less liver disease, fewer alcohol-related deaths), 2) Lower crime and accidents related to intoxication and 3) Rise of healthy alternatives like non-alcoholic beverages and sober events.
There are some negatives too. One, there are now fewer third spaces where people meet offline. Drinking was a social glue, and its absence may mean less socialization, which is something human beings crave. Two, less revenue for governments from excise duties and licenses. India in particular, relies a lot on our drinkers to contribute to the tax kitty. Three, many bars and restaurants will struggle. Alcohol sales can be a big part of a certain kind of F&B place, and they will have to rethink their business model.
Do Governments Need to Think Differently?
If the real “addictions” today are to screens and dopamine hits from social media — not just drinks — maybe the policy conversation needs to broaden as well.
Is phone addiction real? Studies suggest yes. Many psychologists compare excessive phone use to addictive behaviours, activating similar reward centres in the brain. So if phones are the new wind-up that keeps us glued and disconnected, should we tax social media giants like we tax alcohol? It sounds crazy — but it’s worth debating.
Finally, what does it mean for you, the individual. First of all, if you haven’t started drinking: don’t feel pressured to. Life is plenty social without alcohol.
If you do drink: think about cutting down. Your liver will thank you, your wallet will thank you, and you will feel and perform a lot better in the long-term.
However, do remember this: don’t replace alcohol with another addiction. Phones, binge-scrolling, obsessive likes — those can be just as unhealthy if not managed.
Real social life, meaningful connections, laughter and presence — those are the things worth living for. With or without a drink in hand.
So here’s to sipping less alcohol — but savoring more of life. Cheers!