Australia’s liquor industry is experiencing a period of change. Shifting category dynamics and marginal growth are putting pressure on the sector to innovate. A key force driving some of the changes: the consumer. Circana senior consultant, Andrew Gerard, reflects on the trends driving the nation.
Source: Circana
Shoppers are not just buying differently, they’re thinking differently. The Circana Liquor Market Moves 2025 report reveals how the consumer landscape – shaped by restraint, re-evaluation, and a renewed focus on health, value, and experience – is impacting the industry.
Smarter spending
Australian drinkers are rethinking their habits with nearly one in three cutting back on alcohol purchases, with cost the driving factor. But it’s not just about buying less; it’s about being smarter. Shoppers are increasingly:
- Chasing promotions and rewards
- Stocking up when discounts hit
- Opting for value-friendly options like cask wine and spritzes
This shift reflected in evolving purchasing behaviours: fewer households are buying liquor, and those that do are shopping less frequently and in smaller quantities.
A cultural shift towards conscious moderation
Financial pressures aren’t the only factors steering behaviours. A growing number of Australians (more than 40 per cent) say they intend to reduce or stop drinking in 2025. The drivers are deeply personal:
- 75 per cent cite physical health
- 51 per cent are prioritising mental wellbeing
- 37 per cent are chasing better sleep
Gen Z is leading this cultural shift, increasingly viewing alcohol as optional, rather than essential. The growing use of GLP-1 weight-loss medications is also reinforcing this shift, with many users reporting reduced alcohol intake.
Zero-alcohol hits a plateau
After enjoying rapid growth post-pandemic, zero-alcohol products are now losing steam. Today, just 17 per cent of Australians purchase these alternatives, and only 8 per cent are eager to see more on the shelves.
The reasons? Many cite underwhelming taste, low interest, and a preference for traditional options. One exception: zero-alcohol beer continues to perform, thanks to better taste profiles and packaging innovation.
Healthier choices, taste-led
Australians aren’t giving up on indulgence, they’re simply reframing it. Demand is growing for drinks that support health goals without sacrificing enjoyment, including:
- Low-carb beers (up 32 per cent)
- Mid-strength beers (up 11 per cent)
- No- and low-sugar RTDs (up 59 per cent in value)
- Flavour-driven options like lemon and peach RTDs, blending nostalgia with novelty
Consumers are willing to pay more, so long as the taste delivers.
Premium, with purpose
Premiumisation still matters, but it’s being redefined. Rather than simply trading up, today’s consumers are:
- Choosing quality over quantity
- Seeking memorable, elevated experiences
- Aligning with brands that reflect their identity and values
This is evident in the rise of categories like tequila, spritz, and aperitifs – lower ABV options that offer a refined experience without the excess.
The bottom line: A new kind of drinker
Today’s Australian liquor consumer is cautious but curious, driven by health, value, and experience over volume. For brands and retailers, the message is clear: adapt to this changing mindset or risk being left behind.
