Almost half of all Australians have reduced their alcohol consumption or stopped drinking entirely over the past year, reflecting a significant ongoing shift in national drinking habits.

A new report by consumer group Shop! ANZ and insights platform Vypr found that 47 per cent of Australians had cut back or quit drinking during the past year. Cost-of-living pressures were identified as the main reason for this change by 58 per cent of respondents, followed by health and wellness factors at 49 per cent.

The report suggests these changes may reflect a long-term behavioural shift rather than a temporary response to economic challenges.

Among those who continue to drink, brand loyalty has weakened considerably, creating a more competitive market for beer, wine, and spirits, each now sharing a similar proportion of customers.

“Australians choose their alcohol based on occasion, mood, or price, but ultimately taste remains the key deciding factor for most wine (78 per cent), beer (71 per cent), and spirit (68 per cent) drinkers,” Shop! ANZ general manager Carla Bridge said.

“At the same time, nearly two-thirds (66 per cent) of consumers say price is the most important factor when buying alcohol at bottle shops, outweighing brand story, packaging, or origin. People want both taste and value — and they’ll switch brands quickly if they don’t get it.”

Brand loyalty remains relatively low, with only 22 per cent of wine drinkers and 28 per cent of spirits drinkers sticking to a single brand. Beer drinkers show higher loyalty, with 50 per cent favouring a go-to brand.

Vypr international chief revenue officer Sam Gilding noted that shoppers are increasingly drawn to clear savings and discounts.

“‘Buy one, get one free’ offers (50 per cent) and simple price reductions (47 per cent) have the greatest impact,” he said. “Free gifts, competitions, or in-store tastings have far less influence. In a shrinking market, brands that offer clarity, value, and visibility will come out on top.”