This podcast episode explores the surprising trend in the global spirits market, which has seen a drop in demand as the world returned to normal after the COVID-19 pandemic. The authors argue that the optimistic belief of a return to mid-single-digit growth in the U.S. spirits market may be misguided due to changes in demographics and consumer behavior. Factors such as sobriety and moderation in alcohol intake, increased use of GLP-1 anti-obesity drugs, and stiffer regulation pose challenges to the volume of alcohol consumption. The rising trends of sobriety and moderation are driven by factors such as increased awareness of health risks, rising costs of alcohol, alternative spending options, and stricter regulations. Additionally, alcohol spending is declining as consumers have more attractive or pressing spending options post-pandemic.
