Key takeaways
- The world’s biggest brewers are reporting volume and value declines in beer, as drinkers turn away from the category
- Brewers are tightening their belts with cost-cutting and increased focus on efficiences
- They’re also exploring areas of innovation: such as alcohol-free beer, premium brews and beyond beer categories
The world’s biggest brewers are facing huge challenges. The global beer industry is now in a phase of long-term structural stagnation: with volumes declining 1% to 2% across the US and Europe.
Heineken saw volumes decline in 2025, announcing a tranche of job cuts. AB InBev reported volume declines of 2.3% over the year. Molson Coors also saw volumes decline.
The beer industry does not look too healthy in value terms, either. Constellation Brands, which will report its FY results in April, anticipates net sales in its beer business to decline 2% - 4% and operating income to decline 7% - 9%.
So how are global beer giants reacting?
Strategies focus on innovation in premium brews, alcohol-free and beyond beer. And brewers are also eyeing up the potential of emerging markets outside traditional US and European strongholds
Tightening the belts
Cost saving measures now form a key part of major brewers’ strategies.
Heineken, for example, has announced it will cut 5,000 – 6,000 jobs over the next two years: representing around 6% of its global workforce.
Brewers are also more cautious about where they spend their money on innovation: wanting to know exactly where and when they’ll see ROI on their spending.
Going on the offensive
2026 is going to be a big year for sport. There’s already been the Super Bowl and Winter Olympics; with the FIFA World Cup yet to come in June and July.
For big brewers such as AB InBev, these are key marketing moments: with Budweiser and Michelub Ultra leading its efforts this year.
“The World Cup always presents a unique opportunity for us,” says Michel Doukeris, CEO, AB InBev.
“With 104 games across three countries, each game is an opportunity to bring beer and sports together to create unforgettable moments for fans around the world.”
Premiumization is another key strategy. All major brewers have seen premium brews perform far better than mainstream ones: as people seek to drink ‘less but better’.
Emerging markets
With people in the US and Europe drinking less, brewers are turning their attention further afield. Latin America, Africa and parts of Asia Pacific all offer opportunities for growth.
Many markets, such as Indonesia and Nigeria, are now characterised rise in urban populations and people with increased disposable income: and offer an increased opportunity for beer.
Diversification strategies
All major brewers are now ramping up their focus on two key areas: alcohol-free beer and ‘beyond beer’ portfolios.
Alcohol beer is a thriving category and one with higher margins than traditional beer.
Now, nearly all big name brands have an alcohol-free counterpart. There’s Heineken 0.0, Guinness 0.0, Budweiser 0.0, Corona Cero... to name just a few.
And beyond beer allows brewers to get into adjacent spaces such as RTD cocktails.
Just this week, Molson Coors has acquired Monaco Cocktails: currently the top independently RTD singles cocktail brand in the US.
The brewer has also gone further outside its alcohol comfort zone with the purchase of an 8.5% stake in Fever Tree. And it’s also acquired Zoa Energy: the brand built up by Dwayne ‘The Rock’ Johnson.
The best strategies
So where are the strongest opportunities for today’s brewers? Carlos Munoz, analyst at credit agency Scope Ratings, says it’s important to remember that - despite the excitement around new areas of innovation such as beyond beer - brewers’ key business remains in brewing.
“Traditional beer categories still represent around 85% of AB InBev and Heineken revenues and presumably a higher percentage of operating profits, hence the emphasis on premiumisation and exposure to emerging markets are more important to their credit profiles,” he said.
In practical terms, the biggest area for brewers to focus on is disciplined financial policies and being cautious around taking on incremental debt to support shareholder returns. Similarly, deciding how to spend capital will be critical: there’ll be little interest in debt-funded acquisitions, continued Munoz. M&A activity is far more likely to be reserved for small, bolt-on transactions that can be financed within existing balance-sheet capacity.
Effective cost-management optimisation and sustained efficiency and rationalisation programmes will remain essential, he added.