Global beer is entering 2026 under pressure, but not without options. According to preliminary data from IWSR, beer volumes in the world’s 21 leading markets fell by 1% in 2025, while value still increased slightly as consumers bought fewer serves but continued to trade up to premium-and-above products.
Among the largest contributors to the global decline were the USA and Brazil, while South Africa and India were among the strongest growth markets. No-alcohol beer remained the clearest winner: volumes rose by 8% in 2025, compared with a 1% decline for beer overall. Its premium-plus share also climbed to 29% of volumes, up from 20% in 2019.
Roisin Vulcheva, Senior Beer Insights Manager at IWSR, said brewers’ investment in premium-plus propositions was paying off in developed markets such as the UK, France and Canada, as well as in South Africa, India and Latin America. The trend is especially visible in no-alcohol beer, which continues to grow in almost all tracked markets.
Brewers are reacting with restructuring, innovation and diversification. Asahi is expanding into Africa (inside.beer, 18.12.2025), Tilray acquired BrewDog operations in the UK, Ireland, the USA and Australia (inside.beer, 17.3.2026), Diageo sold its stake in Guinness Ghana Breweries to Castel Group (inside.beer, 29.1.2025), and Heineken divested its brewing operations in the Democratic Republic of Congo (inside.beer, 10.4.2026) while winding down large-scale production in Singapore (inside.beer, 24.3.2026).
Innovation is increasingly moving toward flavoured beer, no-sugar and low-calorie variants, functional drinks and no-alcohol beer blended with soft drinks. Fruit-forward flavours such as peach, apple, pear, cherry and berry are gaining traction across beer, spirits and RTDs, according to IWSR’s Radius innovation tracker. Heineken’s Outd00r Brewing, a functional, alcohol-free beer brand specifically designed for active and health-conscious consumers (inside.beer, 7.5.2026), was cited as one example of brewers addressing health and wellness trends.
Asia remains central to beer’s future, with Asia Pacific accounting for around one-third of global beer consumption. In China, packaging formats such as one-litre cans and full-open-top cans are helping premium beers stand out in modern retail. IWSR’s Bevtrac research found that more than 80% of Chinese Gen Z drinkers consume beer, with some shifting away from spirits.
India is also gaining importance, helped by brewers using major sports sponsorships to build premium beer visibility. However, higher marketing spending and expected price increases linked to the Middle East crisis could limit future gains.
The crisis is already affecting input costs. Disruptions around the Strait of Hormuz have pushed up liquefied natural gas costs, raising glass production expenses. Fertiliser, aluminium and CO2 prices have also increased, meaning cost pressure could last through 2026 and possibly into 2027.
Martin Belchev, Senior Econometrician at IWSR, said the current shock differs from Covid-19 and the war in Ukraine because it combines supply-side disruption with fragile consumer sentiment. Still, beer may be more resilient than wine or spirits because production and distribution are often more local.
One possible bright spot is premium beer as an “affordable treat”: consumers trading down from more expensive alcohol categories may still choose premium beer as a relatively accessible luxury.
