The world’s largest brewer, AB InBev, says changing consumer habits, including the rise in the use of weight-loss drugs, pose a growing threat to its beer demand.
This signals a structural shift in drinking habits as, if consumers drink less, the group may be forced to cut prices, spend more on marketing and accept lower margins.
In its annual report on Thursday, the brewer reported a 2% increase in revenue, but added that volumes fell 2.3%, reflecting softer consumption in several markets.
It flagged rapidly changing consumer preferences, including health trends and new medications that may alter drinking patterns.
Among the biggest concerns are the GPL-1 receptor agonists, Ozempic, Wegovy and Mounjaro, which were originally developed to treat diabetes, but during trials it was found they also worked as appetite suppressors.
According to reports by the NPR and Beverage Daily, they also reduce alcohol craving.
Studies show that about half of patients taking them report drinking less alcohol.
Some research suggests consumption can fall by as much as two-thirds, amounting to about three fewer drinks per week on average.
Users frequently describe a reduction in “alcohol noise”, similar to the way the medication reduces constant thoughts about food. Many also report lower alcohol tolerance, meaning they feel the effects quicker and choose to drink less.
In SA, the use of weight-loss drugs is rising rapidly.
Spending on Ozempic rocketed, jumping from position 170 in 2023 to 12 in 2024 among top drivers of medicine spending by medical schemes and beneficiaries, Medical Brief reported.
About half of SA adults are overweight or obese.
Globally, beer demand is already under strain. Younger consumers are drinking less alcohol and shifting toward moderation. In the US, 2025 alcohol consumption hit its lowest level since 1939.
Beer is also losing market share to spirits, wine and ready-to-drink cocktails.
Even with the pressure, AB InBev is attempting to adapt. Its no-alcohol beer portfolio posted a 34% revenue increase in the past financial year, led by Corona Cero, which recorded double-digit volume growth. It is market leader in its category in several countries, including the US, Brazil and Belgium.
Its broader “balanced choices” portfolio, which includes low-carb, sugar-free, gluten-free and no-alcohol options, grew revenue by 8.9%.
The company’s Beyond Beer segment, which includes products such as Cutwater and Brutal Fruit, increased revenue by 23% and now accounts for 3% of total revenue.
Mainstream beer, which accounts for about half of the group’s revenue, posted no growth, with gains in Africa and South America offset by weak numbers in Europe and North America. - Business Times