A recent webinar hosted by NIQ’s Tom Graham in partnership with the Drinks Association unpacked the changing face of alcohol consumption across Australia, including what it means for suppliers and operators right now and moving forwards.
A Shift in the ‘How’, Not the ‘If’
Most Australians haven’t stopped drinking, although there’s been a slight dip in total liquor penetration both at home and in venues. But they’re drinking differently, with 62% of On Premise consumers now describing their drinking as “moderated”.
In real terms this means:
• Fewer drinks per occasion
• Lower-ABV choices
• More selective timing
Overall, there’s a definitive shift towards quality, intentionality, and balance. This switch can be clearly seen in the way consumers might savour a wine rather than guzzling multiple cocktails, swap to no/low-alcoholic beer, or limit drinking to special occasions.
Yet it’s not just health and wellness concerns driving these behaviours and preferences.
Financial Pressures Are Accelerating the Trend
Health and wellness remain key factors. In addition, cost is also a prime motivator for cutting back on alcohol consumption. In fact, Australians rank higher than the global average for drinking less for financial reasons, outpacing markets like the UK and Canada.
That’s not to say the trend is permanent. For example, some of these shifts could reverse as economic conditions improve, especially in mid- and full-strength categories.
All the same, drinks brands, suppliers and operators need to distinguish between short-term financial moderation and longer-term wellness shifts when planning.
Age and Motivation Matter
Segmentation by age group is telling for designing no/low strategies:
• 18–34s are driven by better sleep, fitness, and self-improvement.
• 35–54s moderate to avoid hangovers and maintain control.
• 55+ state health, lifestyle changes and cost as the main reasons for drinking less.
Accordingly, brand messages and formats to these distinct motivations can be effective for unlocking new loyalty and engagement, rather than a generic “healthier choice” narrative.
GLP-1s Are an Unknown Quantity
Weight loss drugs like Ozempic and Mounjaro might alter the future of alcohol moderation. But their impact is difficult to predict, in light of relatively low current uptake and appeal in Australia.
For these reasons, the ramifications on drinking and On Premise visitation are polarised. On one hand, some users drink less, while others remain unchanged, and a few drink more.
For now, the recommendation is to avoid overreacting, while keeping a watchful eye on expert data rather than media hype.
No/Low and Mid-Strength Present Extensive Opportunity
No/low alcohol and mid-strength categories are seeing double digit growth in both retail and On Premise sales. This is because they’ve outgrown the ‘niche’ tag and become essential to today’s drinks menus.
And the key reasons for this?
• Health and wellness concerns
• Daytime and multi-occasion drinking
• A desire for premium experiences without the unwelcome side effects
Correspondingly, venues with premium positioning such as hotels, fine dining restaurants and higher-end bars are prime fertile ground for select soft drinks and low/no alcohol alternatives.
NIQ’s Tom Graham, Industry Insights Lead – BevAl, concluded:
“Moderation has become a dominant drinking mindset in Australia. But it’s layered. Economic pressures are amplifying the trend, but on the other hand, wellness and lifestyle priorities are giving it permanence. So, success in this category calls for understanding the audience by age, mindset, and motivation when investing in relevant formats, flavours, and messaging. And at the same time, there’s onus on key industry stakeholders to support moderation without diluting the experience.”
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