Alcoholic Beverages in Decline
People, particularly Generation Z, are drinking less alcohol, with sales of beer in Brazil decreasing by 6.5% to 7% in 2025 compared to the previous year.
A noticeable decline in alcohol consumption has been observed among Brazilians, especially those from Generation Z, which includes individuals born between 1997 and 2012. According to the Brazilian Beer Industry Association, the sales of beer, the country’s most consumed alcoholic beverage, plummeted by 6.5% to 7% in 2025 compared to 2024. This trend signifies a broader shift toward healthier lifestyles among younger generations, supported by both national and international research that evidences their diminishing interest in drinking.
The implications of this trend raise concerns for the alcoholic beverage industry, highlighting a crucial moment for transformation as they grapple with changing consumer preferences. If the declining trend continues, it poses a significant challenge for the industry, which has traditionally relied on younger consumers to sustain sales. However, the decline brings encouraging news for public health, as growing evidence from medical literature indicates that there are no safe levels of alcohol consumption, correlating alcohol intake with an increased risk of several cancers and various health issues, as well as societal problems such as accidents and interpersonal conflicts.
In response to these challenges, the alcoholic beverage industry is attempting to adapt by investing more heavily in premium beer segments, which offer higher profit margins, and by launching new products aimed at attracting a health-conscious audience. The estimated annual expenditure of the Brazilian Unified Health System (SUS) to treat illnesses related to alcohol consumption—approximately R$ 1.1 billion—further underscores the importance of this emerging trend and its potential long-term impact on public health and industry dynamics.