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- Europeans ditching alcohol for taste and health reasons, research firm says</p>
<p>By Emma RumneyOctober 7, 2025 at 3:02 AM</p>
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<p>Bottles of alcoholic beverages are seen for sale in a shop in Glasgow, Scotland, Britain, May 1, 2018. REUTERS/Russell Cheyne</p>
<p>By Emma Rumney</p>
<p>-Younger Europeans are drinking less alcohol because of the way it tastes and concern over their health, a market research firm said on Tuesday, suggesting slow sales are a result of changing preferences rather than just a financial squeeze.</p>
<p>Alcohol sales have been falling in developed countries in recent years, prompting debate over what has driven the declines.</p>
<p>Some executives argue it is mostly a result of cyclical financial pressure on consumers, which means sales should bounce back when times get better. But others say the shift is a sign of changing preferences, which could be harder to reverse.</p>
<p>Circana, a U.S. market research company, said its survey pointed to a generational shift in Europe, where it found 71% of consumers were buying or consuming less alcohol, and almost one in four 25-35-year-olds had ditched alcoholic drinks altogether.</p>
<p>The shift demanded "strategic reinvention" from beverage companies, said Ananda Roy, senior vice president of thought leadership at Circana.</p>
<p>Its survey found that 55% of Europeans said non-alcoholic drinks were "more refreshing", while another 27% said they were healthier or tasted better.</p>
<p>Non-alcoholic drinks now account for nearly 60% of sales in Europe's 166 billion euro beverage market after growing 5.1% year-on-year, while alcoholic beverages fell 1.8%.</p>
<p>Some alcohol companies argue financial pressures are the bigger factor after years of inflation and high interest rates.</p>
<p>"When people say it's all about health and wellness... I don't buy into that," Diageo's interim CEO Nik Jhangiani told a conference in September, saying declines were more related to the economic cycle.</p>
<p>In August, the number of Americans who reported drinking alcohol hit a record low, according to a Gallup poll, with the majority for the first time saying even moderate drinking was harmful to health.</p>
<p>(Reporting by Emma RumneyEditing by Peter Graff)</p>
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