Spain's alcohol sales drop as young people quit drinking

Supermarket alcohol sales plunge 8% as youth abandon the glass

The spirits industry in Spain has recorded three consecutive years of declining sales. Revenue dropped 8.1% in supermarkets and up to 1.7% in the hospitality sector, according to industry data, and even a 4.6% price reduction this year has failed to stem the bleeding. The trade association admits that consumption trends are "undoubtedly negative." The collapse is not due to price: it is a matter of volume, and above all, habit.

What the data reveals about the slump

According to the Ministry of Agriculture, Fisheries and Food, cumulative sales fell 3.7% in supermarkets during the first seven months of the year, channels that account for around 30% of total sales. In hospitality, NIQ consultancy reports a 1.7% decline between September 2024 and the same month this year. During summer, sales of whisky, rum, gin, and other distilled spirits decreased by 2.9% compared to the previous season.

The trend is persistent: sales dropped 5.9% in 2023 and another 3.7% last year. Bosco Torremocha, Managing Director of the trade association Espirituosos de España, summarized it bluntly: "I haven't heard anyone say they had a good campaign, and it is very difficult to recover in the second half of the year what was lost in the first."

The lifestyle shift experts acknowledge

Analysts point to a shift toward healthier lifestyles, accelerated since the pandemic, as the primary cause. The Study on Drug Use in Secondary Education (Estudes), conducted by the Ministry of Health, highlights a generational change: in 1995, over 75% of students aged 14 to 18 admitted getting drunk at least once in the past 30 days; today, that figure stands at 51.8%. Looking back one year, 82% admitted drinking heavily three decades ago, while only 70% do so now.

Major companies have responded by launching low-alcohol or non-alcoholic products. Diageo markets Tanqueray 0.0 gin, while Pernod Ricard offers Beefeater Light and Ballantine's Light. The trade association insists that consumption frequency is decreasing, rather than the base of consumers shrinking.

Why do young people drink less? Price and digital dating

Here, the official narrative diverges from public sentiment. Much of the analysis suggests the main driver is economic, not health-related: young people have become poorer, and a night out has turned into a luxury item. A mixed drink costing €10-15 and a beer at €5 in leisure venues force spending of €40-50 just to get started. Fifteen years ago, a mixed drink cost €3-4. In supermarkets, a bottle of well-known brand whisky costs around €23-24, while a shot in a bar is priced at €2.50.

The second recurring factor is the disappearance of alcohol as a social lubricant. Dating has moved to apps, where selection happens before leaving home, and outdoor gatherings (botellón) and clubs have lost ground to screens. If alcohol served to disinhibit and meet people, and that step now occurs on mobile devices, the drink loses its function. This is compounded by stricter breathalyzer controls and the certainty that any accident after drinking becomes a serious problem.

New habits replace old ones: energy drinks, vaping, and gyms

Consumption hasn't disappeared; it has been substituted. Energy drinks, vapes, and digital leisure are taking the place of the bar counter. Some joke that spirits have been replaced by Monster and similar brands, while others note that two energy drinks a day and a vape aren't exactly healthy habits either. The local pub is no longer the hangout spot; it's a digital corner.

The sector is looking abroad for relief. 43% of national production is already destined for international markets. Exports grew 4.7% last year, exceeding €1.04 billion, with more than 137 million liters and approximately 195 million bottles. Key destinations include Mexico, Germany, and France. Spain leads Europe in brandy, rum, liqueurs, and gin; only Ireland surpasses it in whisky.

Key figures from major brands

In the 2023/2024 fiscal year, Pernod Ricard maintained leadership with revenue of €390.7 million, down 2%. Diageo held steady at €285 million, while Zamora Company saw sales fall 3% to €282 million. In terms of margins, Varma (owner of Barceló rum) tops the list with 13.6% and nearly €29 million in profit; trinc by Pernod Ricard at 10.6%, Zamora Company at 7.5%, and Diageo at 4%.

The slump has a positive side for public health but an uncomfortable one for the hospitality sector, which sees its bars emptying. With Christmas approaching, the industry faces a critical period. And here is the disconcerting fact: the decline isn't stopped by lowering prices. If the issue were purely financial, the 4.6% price cut would have reactivated demand. It hasn't.