LONDON — Diageo confirmed further cost-cutting and a strategic review of underperforming brands on Tuesday, as the world's largest spirits maker reported continued declines in volume driven by falling alcohol consumption among younger consumers.

The announcement accompanied the company's first-quarter trading update. Rival Pernod Ricard, owner of Absolut and Jameson, has also flagged weaker sales in North America and China at recent investor briefings.

Moderation now appears a structural shift rather than a passing phase. Industry bodies including the Wine and Spirit Trade Association have reported widespread closures among independent wineries and breweries, which owners have described as the most difficult trading conditions in generations.

Diageo, maker of Johnnie Walker and Guinness, has expanded its no- and low-alcohol range, including Guinness 0.0 and Seedlip, in response to softening demand for traditional products. The company is betting that these products will help offset volume declines elsewhere in its portfolio.

Analysts at Bernstein and Jefferies have warned that per-capita alcohol consumption in key Western markets continues to fall, led by consumers aged 18 to 34. The IWSR drinks data firm has forecast that no- and low-alcohol volumes will keep growing even as overall category sales shrink.

A Wine and Spirit Trade Association spokesperson said the sector faced a prolonged period of adjustment, with smaller producers least able to absorb rising costs and shifting tastes.