How GLP-1 is driving a new era of alcohol industry innovation

Consumers are drinking less but with purpose. GLP-1 is accelerating change across portfolios, formats and brand relevance.

In brief

• Shifting health priorities are influencing alcohol choices across demographics, occasions and household dynamics.
• To stay competitive, brands must deliver value through format innovation, functional benefits and relevance to evolving consumer needs.
• Navigating transformation requires agility across product development, supply chain strategy and sustainability commitments.

Step into any store in 2026 and the alcohol aisle tells a new story. Bulk purchases are less common. Premium single serves and lighter options are now taking center stage. Today’s drinkers are not simply cutting back; they are making more intentional choices. GLP-1 medications have accelerated this change, turning gradual trends into lasting habits. In response, beverage companies are rethinking how they create value, focusing less on frequency and more on the quality of each drinking occasion.

Consumers are setting new standards

Moderation is now the norm, especially for GLP-1 users. According to the EY-Parthenon GLP-1 Consumer Survey (March 2025), 44% of users drink less after starting GLP-1 and 82% keep those habits even after stopping treatment.¹ Younger, affluent consumers are driving this evolution. Only half of 18- to 34-year-olds drank alcohol in 2025, down from nearly 60% two years earlier.² Meanwhile, older consumers are slowly adopting clean-label, satiety-supporting drinks. Low/no alcohol is booming, projected to grow at 13.6% CAGR (2024–29) in the US, compared to just 2.1% for traditional alcohol.³

The impact isn’t uniform across segments or occasions. Among drinkers who cut back, wine shows the steepest decline — 52% reduced consumption, compared with 43% for beer and 40% for spirits.⁵ Wine drinkers tend to be older, more female and more affluent.⁶ Behavioral differences between GLP-1 user types are also emerging: weight-management users cut back more than health-management users. Social occasions favor portion-right serves and premium low/no alcohol options, while solitary, at-home occasions lean toward clean labels and calorie transparency.⁷

GLP-1 use often leads to broader changes in household behavior. Grocery spending in GLP-1 households drops by 5.3%, with higher-income homes reducing spend by 8.2%.⁸ Although spending partially rebounds over time, it does not return to previous levels, especially in calorie-dense categories. Alcohol consumption also declines by 1.9%,⁹ suggesting fewer automatic purchases and a shift toward more curated, occasion-specific choices.

Even household members not on GLP-1 adapt toward lower-intensity options. The result is fewer drinking moments, more alternation between alcoholic and non-alcoholic choices within the same occasion, and a premium on products that deliver satisfaction with less volume.

Premiumization is gaining ground, but affordability pressures are reshaping purchase logic. GLP-1 users are more open to discovery and trial, driven by cost sensitivity and the influence of retail media and social platforms. Brand reputation still matters, but loyalty is no longer guaranteed. Calorie content, price per benefit and perceived functionality now weigh more heavily in decisions. Niche, emerging brands with clear benefits and strong taste profiles are challenging incumbents.

Future-proofing the playbook: from moderation to transformation

To compete, alcohol companies must move from disruption management to enterprise transformation. Here’s how to lead in a wellness-first, tech-enabled market:

1. Reframe portfolios

• Focus on formats that deliver more value per serving.
• Retire low-velocity SKUs and invest in moderation-led innovations across categories.
• Use functional ingredients like botanicals and adaptogens to support health-forward reformulation.
• Track ABV and calories as core performance metrics.

2. Redesign revenue models

• Shift growth from volume to value through smarter price-pack architecture.
• Support moderation with single serves, calibrated multipacks and seasonal bundles.
• Use interactive packaging and retail media to deepen engagement and storytelling.
• Stage low-, mid- and full-strength options together across physical and digital shelves.

3. Accelerate innovation

• Shorten innovation cycles using AI for demand sensing, compliance and personalization.
• Launch both governed formats with claims and rapid experiments like GLP-1–friendly mocktails.
• Measure success by repeat purchase and price realization, not just trial.
• Use consumer feedback and behavioral signals to co-create formats and flavors.

4. Expand ecosystem partnerships

• Partner with health platforms, clinicians and wellness influencers to validate claims.
• Co-market with fitness, food and entertainment brands where alternation is natural.
• Engage sober-curious communities and health-tracking apps to expand relevance.
• Fill capability gaps by acquiring or partnering with disruptive startups.

5. Transform supply chain

• Secure flexible co-packing and dual-source key inputs.
• Use modular production and smart logistics to improve speed and reduce risk.
• Shift logistics to smaller, more frequent drops to support trial formats and avoid inventory build-up.
• Leverage predictive analytics to improve inventory accuracy and reduce stockouts.

6. Lead on sustainability

• Innovate with lighter, recycled, and refillable packaging.
• Move beyond compliance; make sustainability a differentiator through brand communication.
• Prioritize and track water stewardship and supplier engagement.

Sanya Juneja, Ankit Bayala, and Aanchal Singhania also contributed to this article.