Ready-to-drink spirits sales were up 12.9% across Europe’s six biggest grocery markets last year, bucking a trend where spending on alcohol was down 0.8%, new research shows.

According to new analysis of the Fast-moving consumer goods (FMCG) market by Circana, spending on alcohol fell by 0.8% in France, Germany, Italy, the Netherlands, Spain and the UK, while sales of low- and no-alcohol alternatives grew by 7.3%.

The increase in popularity of RTDs fell on a backdrop where beer, cider, wine and spirits sales were down 0.9%, 1.2%, 1.5% and 2.2% respectively.

The consumer data business said that 43% of shoppers, and half of 25- to 39-year-olds, told Circana they were cutting back on alcohol by buying less, postponing purchases or giving up altogether.

Ananda Roy, senior vice president of strategic growth insights at Circana, said: “Alcohol has been declining in popularity in the five or six years since the pandemic and this has now led to a wider range of alternatives and healthier products, which give us much more choice about what we drink at home and when we socialise.

“Younger people in particular are drinking much less alcohol and there is no evidence this will change as they get older, as the growing mix of adult soft drinks and lighter alternatives is simply becoming an increasingly normal part of everyday drinking.

“It’s not game over for alcohol manufacturers, but they need to do much more than cut prices and instead look at lighter, lower-sugar and lower-calorie products that can help beer, wine and spirits stay relevant as our drinking habits change.”

Circana also found new beverage products generated an extra €242 million in sales last year, including €161 million from dairy drinks and €32 million each from low- and no-alcohol products and bottled water.

UK beverage sales rose by 3.2% to €54 billion, accounting for 30% of spending across Europe’s six biggest markets but just 19% of the amount sold. Higher prices also pushed spending up by 2.9% in Italy and 2% in the Netherlands, despite the amount bought remaining flat in both countries.