Italy’s spirits industry is undergoing a profound transformation. At the 80th annual assembly of Assodistil, the country’s association of distillers, industry leaders identified diversification as the key strategy for navigating a rapidly changing market.
Domestic consumption continues to decline as Italian drinking habits evolve. In 2025, spirits consumption fell to approximately 125 million liters, down 10 percent compared with 2019 levels. Exports also slowed, generating €1.7 billion in revenue, a decrease of 5 percent from the previous year.
Yet while overall volumes are shrinking, a clear trend has emerged: consumers are drinking less but choosing higher-quality products. Premium brands and top-tier spirits are increasingly favored over lower-priced alternatives.
Consumption patterns are changing as well. Traditional neat grappa is losing ground to international spirits such as rum, while cocktail culture continues to expand. The growing popularity of ready-to-drink beverages among younger consumers has further accelerated this shift.
Against a backdrop of weakening domestic demand, many Italian distilleries are looking beyond the beverage market for future growth. One of the most promising opportunities lies in bioethanol production.
According to Assodistil President Antonio Emaldi, bioethanol offers a viable pathway for both industrial diversification and environmental sustainability. Already widely used in 19 European Union countries, the renewable fuel is considered one of the most effective tools for reducing emissions from gasoline and hybrid vehicles.
Despite current market challenges, more than 75 percent of companies surveyed by Format Research remain optimistic about the next five years. For many distilleries, the future may depend not only on what is poured into glasses, but also on what goes into fuel tanks.