Fewer Spaniards are drinking, and it’s costing the Treasury millions

Drinking culture in Spain has changed significantly in recent years. The combination of rising living costs and growing wellness trends has created a generation that prioritises sobriety over excessive drinking.

According to a 2023 Ministry of Health report, 31 per cent of the population consumed alcohol at least once a week, down from 48.4 per cent in 2006. The report also found that younger generations are driving the trend, with habitual alcohol consumption among 15 to 24-year-olds falling by almost 60 per cent over the last two decades. Health officials say the figures reflect a long-term shift towards healthier lifestyles and changing social habits.

However, this shift towards sobriety isn’t good news for the Treasury.

Last year, the Treasury collected €1.1 billion in tax from alcohol sales, marking its lowest annual haul since 2016. In just four years, alcohol tax revenue has fallen by 10 per cent, with the largest decline coming from spirits. The drop has coincided with lower consumption across almost every category of alcoholic drink.

Spirits see the sharpest decline in Spain

Consumption of spirits like whisky, rum and vodka has been falling steadily in recent years. Sales dropped from 94 million litres in 2022 to 89 million in 2023, 87 million in 2024, and finally 85 million in 2025. As a result, the Treasury collected only €793 million from spirit sales, 12.37 per cent less than in 2021.

Beer consumption has also declined, but not to the same extent. In 2025, 3.67 billion litres of beer were consumed in Spain, down only 2 per cent compared with four years earlier, with the Treasury collecting €336 million.

Changing social habits behind lower alcohol sales

The fall in alcohol consumption is also being linked to changing leisure habits. Industry figures suggest more Spaniards are opting for tardeo, or socialising earlier in the day, rather than traditional late-night drinking sessions. Consumers are also spending less on nights out,  with many choosing alcohol-free alternatives or reducing the amount they drink as the cost of living remains high.

It’s not that the younger generation has given up on going out, they’re simply being more financially responsible when they do so. According to a study commissioned by Fritz-Kola, seven out of ten Spaniards spend less than €40 when they go drinking. Gone are the days of spending the last cents in your bank account. Instead, young people are properly budgeting instead of blowing their entire monthly salary.

Could a decline in consumption led to a tax increase?

Following such a low collection year, the Spanish Treasury was quick to note that alcohol tax has always been relatively low compared with the rest of the EU. Tax on beer, for example, has remained at €0.09 per litre since 2006, despite inflation and rising prices elsewhere.

As such, it is estimated that each Spaniard pays around €25 per year in alcohol tax, well below the EU average of €80 per person. With consumption continuing to decline, economists have suggested that increasing excise duties may become one option for maintaining tax revenues, although no changes have yet been announced.