Australian Alcohol Consumption Falls as Breweries Close

Wineries and breweries face widespread closures as consumers increasingly opt for non-alcoholic alternatives and manage costs.

Updated on Oct. 25, 2026 in Beer

Flat opaque gouache-painted illustration featuring a copper vat and a glass of water, symbolizing Australia's shift in beverage consumption. — Australian alcohol consumption dropped 10 percent over three years, forcing widespread brewery closures as consumers pivot toward non-alcoholic beverage alternatives. AI Illustration. Upload story photo >

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Total alcohol consumption in Australia dropped 10 per cent in the three years to 2024, leading to the closure of over 80 breweries since June 2023. This shift coincides with a notable rise in non-alcoholic beverage sales across the country.

Why it matters

The decline in alcohol demand is driven by persistent cost-of-living pressures and a broader lifestyle shift toward non-alcoholic options. Businesses are now pivoting their production models to adapt to these changing consumer preferences.

In 2023, non-alcoholic beer captured 45 per cent of all non-alcoholic beverage sales. Projections indicate these sales will reach 300 million litres by 2028, reflecting a significant change from historical consumption patterns.

The players

Coles

This major Australian retail corporation reported a 3.3 per cent drop in liquor sales for the 2026 financial year.

Endeavour Group

As a leading retail drinks company, it saw a marginal increase of 0.7 per cent in sales during the 2026 financial year.

The details

Businesses are aggressively cutting staff and reducing production levels to mitigate falling demand, while some wineries are shifting focus to new vineyard plantings. Meanwhile, retail entities show mixed results, with liquor sales at Coles falling 3.3 per cent in the 2026 financial year compared to a 0.7 per cent increase for Endeavour Group.

Over 80 breweries have closed since June 2023.
Non-alcoholic beer accounted for 45 per cent of non-alcoholic sales in 2023.
Total alcohol consumption fell by 10 per cent between 2021 and 2024.
Wine exports reached their lowest level in 22 years in June 2026.
Non-alcoholic beer sales are expected to hit 300 million litres by 2028.

Culture Shift

This contraction represents a departure from traditional Australian drinking culture as consumers prioritise non-alcoholic alternatives. It parallels international trends where wellness-focused living and economic constraints significantly disrupt legacy manufacturing sectors.

Consumers can expect a wider variety of non-alcoholic options on supermarket shelves as manufacturers retool their production lines. However, the closure of local breweries and hotel bars may reduce social venues in specific regions like Hobart.

The takeaway

The Australian beverage industry is undergoing a structural realignment as non-alcoholic alternatives become a standard consumer choice. Households should prepare for a transition where product availability increasingly mirrors this health-conscious and budget-aware market.