In this article, we are going to discuss the 25 countries with the highest alcohol consumption per capita.
There is a substantial amount of evidence that suggests that any alcohol consumption, however moderate, can have negative health consequences. Even low levels of drinking can increase the risk of heart disease, high blood pressure, and even certain types of cancer. Understanding that there is no such thing as risk-free drinking, the Centers for Disease Control and Prevention defines moderate drinking as 2 drinks or less per day for men and no more than one drink per day for women. Still, despite the well-publicized health risks, more than two-thirds of adult drinkers regularly exceed those levels.
READ ALSO: 20 Drunkest States in the US and 20 States with the Most Underage Drinking in the US.
The Global Alcohol Industry:
In 2019, the global alcohol consumption, measured in liters of pure alcohol per person of 15 years of age or older, was 5.5 liters, a 4.7% decrease from 5.7 liters in 2010.
As we mentioned in our article – 20 Most Consumed Alcohols in the World – the global alcoholic beverages market size was valued at $1.62 trillion in 2021 and is projected to reach $2 trillion by 2031, with a CAGR of 2.2% during the forecast period.
The market is likely to be driven by the increasing global young-adult demographic, coupled with high disposable income and consumer demand for premium/super-premium products. Globally, beer drives the market for alcoholic beverages. Regionally, North America and Asia-Pacific are expected to dominate the market during the forecast period.
The Effect of Taxes on Alcohol Abuse:
The booze industry argues that alcohol excise taxes do not reduce heavy drinking because of substitutions to lower-cost products and that these taxes disproportionately burden low-income drinkers. Over the last two decades, a growing number of economists have examined the impact of alcohol beverage taxes and prices on alcohol consumption and heavy drinking. Several of these studies have focused on high-risk populations, such as youth and young adults, including college students.
This research, using a variety of different data and empirical approaches, has generally found that an increase in the prices of alcoholic beverages led to reductions in drinking, heavy drinking, and the consequences of alcohol use and abuse. These findings indicate that a rise in alcoholic beverage taxes could be a highly effective option for reducing alcohol abuse and its consequences.
Increasing alcohol taxes could not only improve public health but also reduce the disparity between alcohol-related costs and total alcohol taxes in states. It could help prevent the reallocation of the societal cost of drinking from those who drink excessively to the general public. Conversely, if specific excise taxes are not increased, these are likely to further erode over time because of inflation, which could result in an even greater disparity between alcohol taxes and alcohol-attributable costs. Due to their higher levies on booze, several of the names in our list of States with the Highest Alcohol and Beer Tax also rank among the States that Drink the Least Alcohol per Capita.
According to a study conducted by the NCD Advisory Council’s signature initiative working group, if countries of the WHO European Region were to introduce a minimum level of 15% tax on the retail price per unit of alcohol, regardless of the type of alcoholic beverage, it would save around 133,000 lives each year.
Recent Shifts in the Global Alcohol Market:
From Japan to the United States, global drinking habits have shifted dramatically over the last few years. While it may look like the alcohol industry is set to achieve a multi-trillion dollar mark in the coming decades, recent changes in consumer behavior suggest that the market, as we know it today, may be in danger of running dry.
The global low and no-alcohol consumer trend is a significant shift in the drinks industry, driven by increasingly health-conscious consumers seeking alternatives to traditional alcoholic beverages. Millennials and Generation Z are the main insurgents, driving a transformation in choice and demanding more from their drinks. These younger generations are adopting a healthier lifestyle and reaping the benefits of going alcohol-free – but they’re not the only ones. From fitness fans and healthy lifestylers to a renaissance in older living, knowing what you’re putting into your body is now a key priority.
To make sure they don’t miss out on the opportunity, several industry behemoths have hopped on the zero-alcohol bandwagon and are now offering products with all of the taste and none of the booze. Launched by Diageo plc (NYSE:DEO) in 2020, Guinness 0.0 ‘boasts the same beautifully smooth taste, perfectly balanced flavor and unique dark color of Guinness, without the alcohol’. The NA offering has achieved massive success in only four years and is already counted among the Best-Selling Non-Alcoholic Beers in the US. In fact, Guinness 0.0 has witnessed an almost 50% increase in sales between the end of February 2023 and the end of February 2024, according to Food Manufacture. As a result, Diageo announced in October that it would invest €30 million ($31.4 million) in the production of its popular alcohol-free stout at St. James’s Gate in Dublin, doubling its total investment in Guinness 0.0 to €60 million ($62.8 million).
The spirits giant is also a global leader in the non-alcoholic spirits category and further strengthened its position this September when it announced that it had acquired Ritual Zero Proof Non-Alcoholic Spirits, the number one NA spirit brand in the United States. The acquisition is in line with Diageo’s ‘Growth Ambition’ to deliver the company’s next phase of sustainable growth.
With a vast array of brands in over 180 countries, Diageo’s portfolio has remarkable breadth across the spirits and beer categories in a range of markets around the world. This provides the company with a buffer against market volatility associated with luxury goods and also enables it to find opportunities to roll out more accessible product lines or bring innovation to the ‘everyday luxury’ segment. Moreover, the London-based company’s evolving strategy revolves around pivoting away from its ‘affordable luxury’ narrative towards a more conventional staples business model, demonstrating that DEO has been adapting to broader industry trends, favoring stability and consistent performance over the potential volatility of luxury markets.
Also, despite the challenges, the company generated a strong free cash flow of $2.6 billion in FY 2024 (ending June 30th), up $0.4 billion from the previous year. Diageo plc (DEO) also stood up to its reputation as a very reliable dividend payer for decades and increased its full-year dividend by 5%, maintaining its track record of dividend increases since fiscal year 2000.
Aristotle Capital Management, LLC, an investment management company, said the following about DEO in its Q3 2024 investment letter:
“Headquartered in London, England, Diageo plc (NYSE:DEO) is a global leader in the alcoholic beverages industry. The company has a vast portfolio of over 200 well-recognized premium spirits (~80% of FY 2024 sales), beers (~15% and mostly Guinness) and other beverages (~5%) that are sold in nearly 180 countries. Led by its Johnnie Walker brand, Diageo is the world’s largest exporter of Scotch whiskey—its largest category at ~25% of sales—followed by other spirits such as tequila and vodka (~10% each). Diageo also owns a ~34% stake in the premium champagne and cognac maker Moët Hennessy (a subsidiary of LVMH Moët Hennessy Louis Vuitton).
The company is the product of the 1997 merger between Grand Metropolitan and Guinness and the subsequent divestiture of its food-related businesses. M&A continues to be a part of Diageo’s strategy, as regional brands often dominate local markets (which provides further opportunities for mergers and industry consolidation). Over the last decade, Diageo has also meaningfully increased its presence in the rapidly growing tequila market with the acquisitions of Don Julio and Casamigos…” (Click here to read the full text).
With a market cap of over $66.7 billion as of the writing of this article, Diageo plc (NYSE:DEO) is included among the Most Valuable Alcohol Companies in the World.
While we acknowledge the potential of DEO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DEO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
With that said, here are the Drunkest Countries in the World.
Pixabay/Public Domain
Methodology:
To collect data for this article, we have referred to The Global Health Observatory of the World Health Organization, looking for Countries that Consume the Most Alcohol in the World. The following countries have been ranked by their per capita consumption of pure alcohol for people aged 15 and over in 2020 (the latest year for which the WHO data is available). Since a country’s drinking habits can generally take a long time to change, the relative ordering of our list should still be valid today. When two or more countries had the same overall consumption, we used the alcohol consumption per capita of their respective male populations as a tiebreaker.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
25. Australia
Alcohol Consumption per Capita: 10.3 liters
The Aussies are certainly known for their drinking. The most popular tipple in the Land Down Under remains wine, with the country also being home to some of the Best Wine Brands in the World.
24. Montenegro
Alcohol Consumption per Capita: 10.3 liters
Young people in Montenegro live in an environment where alcohol is part and parcel of everyday life – of cultural, religious, and social customs. Aside from its famous wine culture, Montenegro is also known for its Rakija.
23. France
Alcohol Consumption per Capita: 10.3 liters
Wine is deeply embedded in the French culture, so much so that it is, in fact, the Country that Drinks the Most Wine in the World. There are vineyards scattered throughout the European country, responsible for producing around 7-8 billion bottles of wine a year.
22. Slovenia
Alcohol Consumption per Capita: 10.4 liters
Slovenians love their Schnapps, also known as Zganje in the local language. Although you can find factory-made bottles of the fruit liquor in stores and supermarkets, it’s the locally made Zganje made in someone’s garage that’s usually the best.
21. Russia
Alcohol Consumption per Capita: 10.5 liters
As the Country that Consumes the Most Vodka in the World, Russia’s position on the list does not come as a surprise. However, the Putin administration has taken several steps to reduce alcohol consumption over the last decade or so, including further increasing excise taxes, raising the minimum unit price of alcohol, and substantially reducing the availability of retail alcohol.
20. United Kingdom
Alcohol Consumption per Capita: 10.7 liters
Compared to other European countries, the United Kingdom is near the average in terms of overall alcohol consumption. However, it is consistently among the highest for binge drinking. In fact, British women are the biggest female binge drinkers in the world, with 26% of them indulging in binge drinking at least once a month.
19. Slovakia
Alcohol Consumption per Capita: 10.7 liters
Drinking is very much a part of Slovak culture, with beer and wine being especially popular. The standard shot glass size in the Central European country is 50 ml, while it is usually around 44 ml around the world.
18. Estonia
Alcohol Consumption per Capita: 10.7 liters
Drinking is a serious problem in Estonia, as it is also ranked among the Countries with Highest Rates of Alcoholism. According to the WHO, the lowering of the alcohol excise duty in 2019 and the changes in society accompanied by the coronavirus pandemic are some of the major contributing factors to the high alcohol consumption in the Baltic country.
17. Ireland
Alcohol Consumption per Capita: 10.8 liters
The Irish are among the most prolific drinkers in the world, often preferring to spend their time in pubs rather than casual cafes and restaurants. The Emerald Isle is also famous for producing some of the finest stouts and whiskeys available today.
16. Luxembourg
Alcohol Consumption per Capita: 10.8 liters
According to a study by the Luxembourg Institute of Health, 43% of the country’s population over 15 drinks alcohol weekly, with 9% reporting daily consumption. Since alcohol is relatively cheaper in Luxembourg, a large number of Belgians also travel regularly to their neighboring country to buy their favorite drinks.
15. Laos
Alcohol Consumption per Capita: 10.8 liters
Alcohol plays an important role throughout Lao society, putting it among the Drunkest Countries in Asia. Drunk driving is a serious problem in Laos, with over a thousand people killed in road accidents every year.
14. Tanzania
Alcohol Consumption per Capita: 10.9 liters
Although the alcohol industry is a significant source of revenue for the Tanzanian government, estimates show that unregulated informally produced alcohol constitutes 86% of all booze consumed in the East African country.
13. Moldova
Alcohol Consumption per Capita: 11.1 liters
Moldovans love their local wines and the country is now home to wine estates of all sizes, showcasing its diverse terroirs, microclimates, and grape varieties. Moldova’s wine industry employs almost 10% of the national workforce, with homemade wine also being especially popular.
12. Burkina Faso
Alcohol Consumption per Capita: 11.3 liters
Burkina Faso is a victim of an underdeveloped political system that extends to its alcohol laws. The West African country does not have a written national alcohol policy and not even a legal minimum age limit for off-premise alcohol purchases. In bars and restaurants, Burkinabé as young as 13 are legally permitted to purchase alcohol.
11. Uganda
Alcohol Consumption per Capita: 11.3 liters
With a per capita annual consumption of 11.3 liters, Uganda is among the African Countries with the Most Alcohol Consumption. Domestically produced spirits account for 63% of Uganda’s alcohol market, which is largely unregulated and unrecorded.
10. Austria
Alcohol Consumption per Capita: 11.5 liters
Unlike some other European countries, purchasing alcohol in Austria is regulated at a regional level. Essentially, there are two different age requirements – either 16 or 18 years – and these depend on the region and the percentage of alcohol content. Usually, 16 is the legal drinking age for non-distilled alcohol, while 18 is for distilled liquor.
9. Bulgaria
Alcohol Consumption per Capita: 11.6 liters
Consistently ranked among the Top 10 Countries that Drink the Most Alcohol, Bulgaria is famous for its rakia – a clear, powerful fruit brandy prepared from fermented grapes, plums, or apricots.
8. Belarus
Alcohol Consumption per Capita: 11.6 liters
Home to some of the Heaviest Drinkers in the World, Belarus once topped the world in drinking and the annual per capita consumption reached a staggering 17.5 liters of pure alcohol. However, the situation has significantly improved over the last decade, thanks to government initiatives like an increase in the excise tax on booze.
7. Poland
Alcohol Consumption per Capita: 11.7 liters
The alcoholic beverage market in Poland is worth approximately $12 billion, with beer and vodka being especially popular. In 2021, the Central European country was the largest market for vodka in the EU, representing over 35% of all sales in the region.
6. Germany
Alcohol Consumption per Capita: 11.8 liters
One of the Best Beer Countries in 2024, Germany’s love affair with the beverage has existed for more than 1,000 years, spawning many types of brews and flavors. Beer is so integral to German culture that the country even came up with its own purity law as far back as 500 years ago.
5. Czech Republic
Alcohol Consumption per Capita: 12 liters
Although it is still the Country that Drinks the Most Beer in the World, the consumption of the brew in the Czech Republic has dropped significantly in the last few years. As the country battled with economic uncertainty, the soaring taxes on draught beer have certainly taken a toll.
4. Lithuania
Alcohol Consumption per Capita: 12.1 liters
Lithuania has recently taken some radical measures to curb its high alcohol use, including doubling the excise tax for wine and beer in 2017, nearly banning alcohol advertising altogether in 2018, and also reducing the hours of sale, especially on Sundays. The Baltic country even increased its minimum legal drinking age from 18 years to 20 in 2018.
3. Latvia
Alcohol Consumption per Capita: 12.9 liters
In 2021, Latvia was the number one country in Europe for household spending on alcohol, with its residents spending almost $1 billion on booze, or roughly 5% of their total consumption expenditure.
With an annual per capita consumption of 12.9 liters, Latvia is included among the Top 3 Alcohol Drinking Countries in the World in 2024.
2. Georgia
Alcohol Consumption per Capita: 14.4 liters
Georgia’s rich wine-drinking culture sets it apart from other ex-Soviet countries, where people prefer to drink spirits. The heavy-drinking country boasts over 525 different grape varieties, diverse soils, and topography, and exported over 140 million bottles of wine to more than 65 countries in 2022.
1. Romania
Alcohol Consumption per Capita: 16.8 liters
Romania’s hard-drinking culture is taking a serious toll on its society, with alcohol use causing more than 4,000 deaths due to cancer and over 6,000 deaths due to liver cirrhosis every year. Romanian men retain the title of the heaviest drinkers in the world, with a per capita consumption of 27 liters of pure alcohol in 2020.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
