Alcoholic Beverages Shoppers Trends: Consumption Patterns by Geography, Generation, Income, and Household Size (2025)

ResearchAndMarkets.com has released a case study on alcoholic beverages shoppers, highlighting trends in consumption by geography, generation, income, and household size. The report notes that all regions are moving towards less frequent or no alcohol consumption, with the at-home social occasion remaining popular. Low-ABV drinks have seen rises in consumption in some areas, such as the UAE, due to economic migrants. The study aims to gain insight into consumer sentiment, identify target audiences, and plan for future growth in the alcoholic drinks market.

United Breweries Limited (UBL), a prominent player in the Indian alcoholic beverage market, expects a 6 to 7% volume growth for the current fiscal year, despite facing significant challenges. The company's Chief Executive Officer and Managing Director, Vivek Gupta, highlighted the impact of heavy rains in key states during the second quarter and the challenges posed by commodity inflation and shortages in packaging materials, particularly aluminum cans.

Gupta emphasized the need for government reforms in taxation on beer. He advocated for a distinction between beer and stronger alcoholic beverages to foster growth in the rapidly expanding market. He noted that recent GST reforms, which lower taxes on most consumer goods and some services effective from September 22, could help increase the consumption of alcoholic beverages. However, the success of these reforms will depend on state governments' cooperation.

Gupta also expressed concern about the current tariffs imposed on the beer industry, which he believes need to be reduced and rationalized. He argued that beer, being a natural product with less than 6% alcohol, should be taxed differently from stronger beverages. He highlighted that the beer industry has significantly contributed to employment and tax revenues, and reducing taxes could help the industry grow further.

The report by ResearchAndMarkets.com on alcoholic beverage shoppers noted a trend towards less frequent or no alcohol consumption across all regions. However, low-ABV drinks have seen rises in consumption in areas like the UAE due to economic migrants. This trend suggests that there is an opportunity for the beer industry to capitalize on the growing preference for low-alcohol beverages.

UBL's outlook remains positive, with Gupta expecting a 6 to 7% volume growth even after normalizing the impact of rains. The company's premium portfolio also grew by 46% in the June quarter of FY26, indicating a strong market demand for premium beer products.

UBL is expanding its operations, but Gupta noted that the company's capital expenditure plans depend on state-specific taxations. He stressed the need for reforms to make it easier to do business in the beer industry.

In conclusion, UBL's positive outlook is based on the potential benefits of recent GST reforms and the growing demand for low-ABV drinks. However, the company faces challenges due to heavy rains and packaging material shortages. The key to UBL's success will be the cooperation of state governments in implementing favorable tax reforms and addressing market challenges.