Per capita alcohol consumption in Australia - Data and Analysis (1961-2032)

IBISWorld forecasts that per capita alcohol consumption will decline by 0.7 % in 2024-25, falling to 10.37 litres per capita. Rising health consciousness and ongoing cost-of-living pressures are the principal drivers. Consumers are increasingly adopting moderation strategies, shifting discretionary spending away from full-strength alcohol towards low- and no-alcohol alternatives in beer, wine and spirits.Over the past five years, Australia has largely resumed its long-term downward trajectory in per capita consumption, as social attitudes around drinking continue to evolve. There was, however, a temporary uptick in at-home consumption during COVID-19 lockdowns, especially in Melbourne and Sydney, driven by government stimulus payments and the absence of other spending outlets. The Australian Institute of Health and Welfare's 2022-23 data show that total alcohol available for consumption fell back to around 10.46 L of pure alcohol per person, down from a pandemic-era peak of 10.85 L in 2021. In that period, per capita beer volumes dipped further, while spirits recovered from their 2018 trough and wine volumes remained flat compared to the immediate pre-pandemic years.Low- and no-alcohol products have continued to gain market share, reflecting both heightened health awareness and cost sensitivity. Separately, premiumisation trends have driven stronger demand for craft spirits, such as gin made from native Australian botanicals and quality wines. Premiumisation has especially benefited the spirits category, where consumers pay more per litre to access small-batch, artisanal labels. Wine producers also saw higher average spending per bottle, even though total wine volume per capita did not climb above its mid-2010 levels.As a result, the alcohol volume purchased per person is expected to continue edging lower, even if total spending on premium bottles remains elevated. For beer, the rise of craft and small-brewery labels did not reverse an overall volume decline, as consumers bought less liquid but often paid more per unit. In the wine category, quality-conscious drinkers kept value-per-litre high but generally consumed fewer litres than five years ago. The spirits category posted a net volume increase from its low in 2018, peaking around 2.55 L per capita in 2023, mainly on the back of premium gin and ready-to-drink (RTD) cocktails.While per capita consumption is falling, total alcohol available for consumption continues to rise, driven by Australia's growing population aged 15 and over. In other words, population growth is offsetting part of the drop in per-person volumes, so total alcohol sales in litres remain roughly flat (or climb slightly) despite the per-head decline. IBISWorld notes that over the five years through 2024-25, per capita alcohol consumption is projected to climb at around a 0.6 % compounded annually. Taken together, these data points confirm that, even with a brief pandemic-related spike, Australia's underlying shift towards moderation and premium, lower-alcohol options has reasserted itself.