Alcohol spending remains “stubbornly low”, according to the latest IWSR Bevtrac consumer research, undertaken in 15 leading markets. 

The IWSR said that people continue to prioritise spending on necessities such as food and personal care, amid continued economic pressures. 

It added that there are some signs the situation is starting to steady. Nonetheless, spending remains net negative, even among higher-income groups who are traditionally more protected from downturns. 

In 11 out of 15 markets, the trend is negative, said the IWSR, with exceptions in India and China, where only urban middle-class consumers were surveyed. 

At the same time, participation among Gen Z continues to rise compared with two years ago, though the level has largely stabilised over the past 12 months. 

Further data on Gen Z drinkers showed that they are becoming increasingly selective, with the average number of categories consumed per occasion dropping from 2.8 to 1.8 over the past two years. 

As previously reported by the IWSR, Millennial engagement is at the lowest level ever recorded by Bevtrac. 

While the drop in alcohol spending impacts both the on- and off-trade, the IWSR said that recalled visits to the on-trade have suffered particularly, declining year-on-year. 

The biggest declines were seen in China and Mexico. Spain and Taiwan, however, showed increases. 

“Ongoing instability and financial pressure have kept drinkers going out less – a consistent trend over the past two-and-a-half years that signals no near-term recovery for on-premise consumption,” said Ivana Mitic, senior insights manager at the IWSR.  

The insight company provided no specific research on how the downward trend has impacted off-trade spending.