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IBISWorld forecasts that per capita alcohol consumption will decline by 0.9% in 2026-27, falling to 9.43 litres per capita. Rising health consciousness and cost-of-living pressures remain the principal drivers, as consumers shift discretionary spending away from full-strength alcohol towards low and non-alcohol alternatives.Over the past five years, Australia has resumed a steeper downwards trajectory than previously estimated, following a significant revision to the historical data series. IBISWorld expects that over the five years through 2026-27, per capita alcohol consumption is projected to decline at a compounded annual rate of around 2.6%, a sharper contraction than earlier editions anticipated. This follows the Australian Institute of Health and Welfare's 2023-24 data, showing total alcohol available for consumption fell to 9.79 litres per person, down 6.4% from 10.46 litres in 2022-23 and well below the pandemic-era peak of 10.859 litres in 2020-21. Beer and wine volumes both declined sharply, while spirits and RTDs recorded the steepest per-capita decline in 2023-24, following several years of growthLow- and no-alcohol products continue gaining market share, reflecting health awareness and cost sensitivity. Premiumisation supports higher per-litre spending in spirits and wine, even as total per-capita volume contracts; Wine Australia estimates that domestic wine sales volume fell a further 3% in 2024-25. For beer, growth in craft and low-alcohol labels hasn't reversed the overall decline, with on-premise volumes down 3.4% to December 2024 as consumers are drinking less but paying more per unit. Spirits and RTDs, grouped in the data, posted a sharp net volume decline through 2023-24, as weakness in conventional spirits offset continued RTD demand.While per capita consumption is falling faster than previously forecast, total alcohol available for consumption is still partly supported by Australia's growing population aged 15 and over, at roughly 22.7 million by early 2025. This population growth continues to moderate the decline in total litres available even as the per-head figure falls. Overall, these trends confirm Australia's shift towards moderation and reduced drinking frequency, with the pace of change exceeding earlier estimates following the AIHW's downwards revision of the data.
Curious about what drives these trends? IBISWorld's analyst coverage on the per capita alcohol consumption includes detailled analysis on the current performance, outlook and industries affected.
1961-2034
This report analyses per capita alcohol consumption, including beer, wine, spirits, cider and Ready-to-Drink (RTD) beverages. Consumption per capita is measured as litres of pure alcohol available for consumption per person aged 15 years and older. This population is consistent with global standards for measuring alcohol consumption. The data for this report is sourced from the Australian Institute of Health and Welfare and is reported in financial years.
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The per capita alcohol consumption in Australia in 2027 was 9.43 litres.
The per capita alcohol consumption in Australia declined by -2.59% in 2027.
IBISWorld’s data and analysis on per capita alcohol consumption in Australia includes forecasted growth rates over the next five years.