The Drinks Association recently partnered with NielsenIQ (NIQ) to present a timely webinar exploring one of the biggest forces shaping the drinks industry today: moderation. Presented by Tom Graham, Industry Insights Lead for Beverage Alcohol at NIQ, the session unpacked how shifting consumer behaviours, health trends and financial pressures are changing the way Australians engage with alcohol.
“Moderation is driving change, not abstention,” Tom explained. “People are generally still drinking, just differently. That can mean fewer occasions, fewer drinks per occasion or choosing different formats and categories altogether.”
Defining moderation
The session began by clarifying what moderation means to consumers. While government guidelines recommend no more than 10 standard drinks per week, Tom noted that moderation is increasingly shaped by mindset. “Some people take a quantitative approach, deciding in advance how many drinks they’ll have. Others are more mindful, alternating with non-alcoholic options or reserving alcohol for big occasions.”
Who is moderating and why
NIQ data shows overall alcohol penetration and purchase occasions have declined in Australia, particularly among middle-aged groups. While 18–34s are more engaged in on-premise occasions, both they and 35–54s are drinking less often. In contrast, over-55s remain a strong demographic for retailers.
Motivations for moderation are varied. “For younger consumers, it’s about self-improvement, sleep quality and social media influence,” Tom said. “For parents in their 30s and 40s, avoiding hangovers and staying in control are key. For older demographics, cost and health reasons dominate.”
Financial pressures are especially pronounced. Australians rank among the highest globally for citing ‘saving money’ as the main reason for drinking less. This trend highlights both a short-term challenge and a long-term opportunity for suppliers to deliver value without compromising experience.
Category shifts and new opportunities
The moderation trend is most visible in category dynamics. Low- and no-alcohol beer continues to grow, with mid-strength also gaining share at the expense of full-strength. Wine is now following this path with innovation in mid-strength varietals. On-premise, soft drinks and non-alcoholic alternatives are increasingly chosen alongside traditional categories.
Tom highlighted the rise of “zebra striping” – alternating alcoholic drinks with non-alc or soft drinks – as an emerging behaviour across demographics. “The opportunity is to make moderation feel easy and enjoyable,” he said. “From pack formats to menu design, suppliers and venues can play a key role in supporting consumer choice.”
Looking ahead
Tom concluded by urging suppliers and retailers to avoid blanket assumptions. Instead, strategies must be segmented by age, occasion and moderation style. Supporting moderation behaviours with innovative formats, premium experiences and retailer partnerships will be essential.
“There are pockets of opportunity, pockets of growth,” he noted. “Moderation is not the end of drinking, it’s about doing it differently and that opens the door for less but better."
NIQ is a Platinum Partner of the Drinks Association.