AB InBev sees weight-loss drugs as a threat to beer demand

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, with normalised earnings before interest, tax, depreciation and amortisation rising 4.9%. Underlying profit reached $7.41bn. However, volumes fell 2.3%, reflecting softer consumption in several markets in which the group operates. It flagged rapidly changing consumer preferences, including health trends and the 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.

While AB InBev and other major brewers have not yet reported a material effect on overall sales volumes, the group said it may not “be able to fully anticipate or respond to such changes in consumer behaviour”.

In South Africa, the use of weight-loss drugs is rising rapidly. Though exact figures are not publicly available, spending on Ozempic has rocketed. Mediscor’s 2024 Medicines Review showed Ozempic jumped from position 170 in 2023 to position 12 in 2024 among the top drivers of medicine spending by medical schemes and beneficiaries, Medical Brief reported. With about half of South African adults overweight or obese, the potential market for such treatments is expanding.

Globally, beer demand is already under strain. Weak consumer purchasing power, inflation and economic uncertainty have reduced discretionary spending. Meanwhile, younger consumers are drinking less alcohol and shifting toward moderation. In the US, alcohol consumption recently hit its lowest level since 1939, according to 2025 reports.

Major brewers including Heineken and Carlsberg have reported declining volumes in key markets such as Europe and North America, with some cutting jobs and lowering profit forecasts. Beer is also losing market share to spirits, wine and ready-to-drink cocktails. AB InBev has cited the rapid growth of the spirit-based ready-to-drink category in certain countries as a competitive threat.

“Innovation faces inherent risks and the new products AB InBev introduces may not be successful, while competitors may be able to respond more quickly to the emerging trends, such as the growth of the spirit-based ready-to-drink category in certain countries,” it said.

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. The brewer said it is the market leader in this category in several key 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.

Still, mainstream beer, which accounts for about half of the group’s revenue, posted no growth, with gains in Africa and South America offset by a weaker performance in Europe and North America.