Dry spell or lasting change?

Australia has long been known for its strong drinking culture, with alcohol traditionally playing a central role in social gatherings, sporting events and celebrations. However, research suggests younger Australians are increasingly rethinking their relationship with alcohol, with moderation, health and wellbeing becoming greater priorities than they were for previous generations. Australian wine exports fell in the year to June 2026, with export value dropping 7 per cent to $2.30 billion and volume declining 6 per cent to 598 million litres, according to Wine Australia's latest Export Report. It marked the first time export volumes have fallen below 600 million litres since 2004. The decline reflects a broader downturn in global wine consumption, which has fallen to its lowest level since 1961 as consumers moderate alcohol intake, face cost of living pressures and increasingly opt for alternative beverages. Wine Australia Market Insights Manager Peter Bailey said the trend was not unique to Australia. “Data from multiple sources suggests the decline in wine consumption globally is more than a short-term downturn. It's a reflection of changing consumer behaviour that is reshaping demand around the world,” Mr Bailey said. The latest Australian Drinking Trends Report from DrinkWise found drinking habits are changing nationally, with fewer Australians consuming alcohol regularly and more taking a deliberate approach to when and how much they drink. Research from the Australian Institute of Health and Welfare shows alcohol consumption among Australians aged 18 to 24 has been steadily declining for more than two decades. In 2022-23, 16.3 per cent of young adults reported they had never consumed a full serve of alcohol, more than double the proportion recorded in 2001. Monthly alcohol consumption among 18 to 24-year-olds also fell between 2019 and 2022-23. The DrinkWise report found moderation has become the new social norm, with 96 per cent of Australians using at least one strategy to reduce or manage their alcohol consumption. These include alternating between alcoholic and non-alcoholic drinks, setting drink limits before a night out, volunteering to be the designated driver or leaving social events earlier. Health and wellbeing are among the key factors driving the shift. Cowra Health Club nutritionist and personal trainer Claire Smith said many people are becoming more aware of alcohol's impact on their overall health. “The health aspect of cutting back on alcohol is a big one because it can set back nutrition goals quite a lot if people are drinking often or in excess,” Ms Smith said. She said people are increasingly considering alcohol's effect on fitness, sleep and recovery rather than viewing it solely as a social activity. “People are becoming more aware of what alcohol is doing to their body, not just in terms of calories, but also sleep, recovery and energy levels,” she said. “It's not just about what happens on the night. People are looking at how they feel the next day and whether it's affecting other areas of their lives.” Social media movements such as "sober curious" and "damp drinking" have also helped normalise alcohol-free and low-alcohol lifestyles. A 2025 survey by the Foundation for Alcohol Research and Education found almost 40 per cent of drinkers wanted to reduce their alcohol consumption, while only a small proportion wanted to quit alcohol altogether. Ms Smith said many people experienced wider health benefits after cutting back. “When people start feeling better because they've cut back on alcohol, it often creates a domino effect,” she said. “They have more energy, they're more active and they're making healthier choices in other aspects of their lives.” Economic pressures are also influencing drinking habits. With rising housing costs, rents and living expenses, many younger Australians are becoming more selective about where they spend their money. Instead of drinking regularly, many report saving alcohol for special occasions or choosing fewer, higher-quality drinks. One of the clearest signs of changing behaviour is the rapid growth of the no- and low-alcohol market. According to an ANZ report released in 2024, non-alcoholic beer has become the fastest-growing category in the alcohol sector, accounting for 45 per cent of Australia's non-alcoholic beverage sales in 2023 and around 10 per cent of all beer sales. ANZ forecasts zero-alcohol beer sales will almost double by 2028, increasing from 150 million litres annually to about 300 million litres. The report found the trend is being driven by consumers seeking products that align with health-conscious lifestyles, particularly younger Australians who are drinking less than previous generations. Ms Smith said the growing range of alternatives had helped normalise the decision not to drink. “Ten years ago, finding a zero-alcohol beer was almost unheard of. Now they're on tap in pubs and widely accepted, which shows how much attitudes have changed,” she said. “One of the biggest cultural shifts is that people don't face the same pressure to drink that they once did. "Choosing a non-alcoholic option is becoming completely normal.” She said alcohol-free beers, wines and mocktails allowed people to remain part of social occasions without compromising their personal choices. “People still want to be part of the social experience, and non-alcoholic options allow them to do that without feeling like they're missing out,” Ms Smith said. “You can sit down with a zero-alcohol beer, wine or mocktail and still feel included while making choices that suit you.”