eToro review: Investors shift toward non alcoholic drink makers

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EToro highlights beverage sector shift

Non-alcoholic brands outperform across time frames

eToro compared two equal-weighted baskets of publicly listed beverage companies. The alcohol-focused basket included Diageo, Heineken, Pernod Ricard, Carlsberg, and Anheuser-Busch InBev, while the non-alcohol basket comprised Coca-Cola, PepsiCo, Monster Beverage, Celsius Holdings, and A.G. Barr.

Over the past five years, non-alcoholic stocks rose by an average of 69%, while alcohol producers declined by 26%. The divergence is also visible in shorter periods. Over one year, non-alcohol brands gained 24%, compared with a 6% drop for alcohol producers. Over three years, non-alcohol stocks rose 18%, while alcohol stocks fell 29%.

Within the alcohol group, performance has remained weak. Diageo and Pernod Ricard are both down more than 40% over five years, and none of the alcohol producers delivered positive returns over a three-year period. Beer makers showed some resilience in the past year, with Carlsberg up 21% and Anheuser-Busch InBev up 14%, but not enough to reverse longer-term declines.

Shifting consumer behavior drives market reallocation

The analysis aligns with broader lifestyle trends. Data from Alcohol Change UK shows participation in Dry January more than doubled from 4.2 million people in 2019 to 8.5 million in 2024, with 17 million planning to take part in 2026. Academic research published in the BMJ found that adults using low- or no-alcohol drinks to reduce intake rose from 35.0% in 2020 to 43.9% by 2024.

According to Maximilian Wienke, Market Analyst at eToro, investors are reallocating capital toward categories offering clearer growth prospects, stronger pricing power, and relevance to evolving consumption habits. Energy and functional drink producers have been key drivers, with Celsius Holdings up 211% over five years and Monster Beverage gaining 71%.

Platform context and outlook

eToro provides retail investors with access to global equities, thematic portfolios, and analytical tools designed to identify long-term trends across sectors. The beverage sector, eToro notes, is not in decline but undergoing a shift in where growth originates.

As consumer preferences continue to evolve, investors may remain selective, favoring companies aligned with health, functionality, and innovation rather than relying solely on established brand strength.

As a reminder, eToro previously expanded its range of euro-denominated investment instruments by adding 10 new assets, as part of broader efforts to improve accessibility for European investors.

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