Which demographics have driven increased spending on alcohol over the 20 years studied? Our findings suggest that older Americans increased their alcohol spending dramatically, which resonates with growing public health concerns pertaining to baby boomers and booze. In a related finding, retired professionals spent 186 percent more money on alcohol. Conversely, those younger than 25 spent less in 2016 than in 1996, attesting to a trend in millennials choosing to live sober. Another indicator that Americans are looking for flavor was the tremendous growth of agave-based spirits finishing up +15.9% and Cognac/Armagnac logging volume gains of +20.1%. The growth rate for all other varietals reported decreased between 0.9% (Sauvignon blanc) and 16.9% (Sangria).
To find out, we juxtaposed the typical American’s alcohol expenses with the average price of wine and malt beverages in each year. It turns out that beer prices surged over 61 percent during that time, and wine prices increased by over 150 percent since 1996. NielsenIQ revealed that “less than 5% of households [s]” purchased low and no-alcohol (LNA) beverages, which accounted for 3.5% of the total alcohol market share. Pertaining to product introductions, the NielsenIQ BASES report revealed that “15x the number of non-alcohol launches [were] tested in 2021 compared to 2020.” Additionally, over the 52-week period ending in late October 2021, non-alcoholic beverage sales increased by 33%, and low-alcoholic beverage sales increased by 8%.
But those declines were more than covered by growth in Japanese, Indian, and American brands. While Gallup did not report consumption rates based on generation (e.g., Baby Boomer, Gen X), those who are in the 18 to 34 age category would include the “younger” portion of the Millennial generation and the adult proportion of Gen Z (born between 1997 and 2012). Seventy-six percent of U.S. wine trade members who responded to a Wine Opinions survey “at the end of 2022” expect at least “some growth” in the “better for you” wine category, compared to 64% and 61% who expect the same for “zero alcohol” wine and “lower alcohol” wine, respectively. The following table contains data from two sources with consumption statistics segmented based on age range/generation.
Prevalence of Past-Month Drinking
Across all three grade levels, the shares who said they had drunk alcohol in the 30 days prior to the survey and who reported binge drinking – having five or more drinks in a row during the last two weeks – also declined between 2001 and 2023. At $484, the average annual alcohol expenditure, a person could buy about three bottles of wine each month. Additionally, it’s worth noting that more than a quarter of Americans consume no alcohol at all.
No and low-alcoholic beverages
This share peaked in the late 1970s, when 71% of adults said they drank alcohol. For non-alcoholic beverages, sales for the 52 weeks ending October 7, 2023, compared to the year before, increased activities for substance abuse groups by 32%, while total alcoholic beverage sales for the same period only increased by 1%. Pertaining to share, non-alcoholic beverages accounted for 70%, and low-alcohol accounted for 30% of the combined category. According to a 2022 report published by Audience Collective U.S., when purchasing an alcoholic drink, 58% of consumers “think it’s important that a brand is sustainable or eco-friendly.” When segmented based on generation, 47% of Gen X consumers agreed with the statement, while the percentage increased to 75% for Millennials. When asked if “they would be highly likely to switch to a more sustainable brand” if their favorite alcohol brand “was not using sustainable practices,” 34% of Gen X, 50% of Millennials, and 32% of Gen Z responded that they would do so. More recent data indicates that “63% of drinkers are concerned and active about sustainability/ sustainable products.”
Cosmetics consumer behavior in the U.S.
Additionally, New York and Chicago ranked in the bottom five in terms of average alcohol expenditures. While none of these cities lack for establishments serving or selling liquor, residents spent less than $500 a year on drinking on average. Who knows what the future will bring but for now, consumers are ready to reenter the world with a beverage in hand, which bodes well for the entire alcohol industry.
Premium-priced RTDs also garner attention, especially for spirit-based hard seltzers “which use named spirits…and premium ingredients.” There has been an introduction of USDA-certified organic RTDs, others made with all-natural ingredients and world-class spirits, and “enhancing products with functional ingredients.” While not exactly a “flavor,” packs of multiple flavors were the most popular, followed by iced tea-flavored hard seltzers and black cherry. IWSR indicates that “RTD growth has slowed due to a highly saturated hard seltzer segment.” Between 2022 and 2026, the no-alcohol category is expected to increase in volume by 25%, while the low-alcohol category will increase by 6%.
Hard cider
While the domestic beer category finished the year down -4.4%, the import side continues to attract consumers finishing the year up 3.1%. This led to imported beer finishing the year at a market share of 21.8%, up +1.2% from 2019. The non/low alcohol beer segment did align with the trends shown in the other categories with forecasts to grow with a compounded annual growth rate volume of +23.6% from 2021 to 2025. But when I say I have a couple of drinks probably three nights a week, some people might think that to be quite a lot, while others would just shrug, considering that to be pretty normal. I also have to take into account that my drinking habits fluctuate depending on other things going on in my life.
For instance, I started dating my boyfriend almost a year ago, and much of the time we spent together was over drinks. Now that a lot of our time consists of nights spent in one of our respective apartments, we both consume less alcohol (which sometimes takes a concerted effort on both of our parts — we are both somewhat social enablers who love beer) and more television, and spend less money. The average cost of alcohol per year is a particularly interesting to me, because it’s obviously not a “necessary” spending category, but at this point in my life, I know so few people who have cut it out of their lives. N.C. Solutions reported in January 2024 that, on average, consumers were “having three drinks per week, down from four per week in 2023.” Gallup also reported that alcoholic beverage drinkers consumed “on average…four drinks in the past week,” in July 2023. Several industry sources mention consumer willingness to spend more on alcohol and are trading up and purchasing premium beverages.
Per-capita alcohol consumption appears to be highest in the West and lowest in the South, based on the NIAAA data. On the state level, it appears to be highest in New Hampshire and Delaware, and lowest in Utah. However, state-level consumption estimates can be affected by such factors as sales to people from neighboring states (especially when there are significant differences in alcohol tax rates) and alcohol consumption by tourists (think Nevada, Florida, and Washington, D.C.). Some say staying sober can lead to significant savings in the long run, especially for those who go out often.
- Some say staying sober can lead to significant savings in the long run, especially for those who go out often.
- To meet our team of clinicians or learn more about our resources and programs, explore our website today.
- If you or someone you love is struggling with a drinking problem or the use of other substances, the personal price you pay can be severe.
- Per-capita alcohol consumption appears to be highest in the West and lowest in the South, based on the NIAAA data.
- While 66% of beer sales were attributed to “large, non-craft domestic” companies in 2021, imports accounted for 21% and craft beer at 13%.
It bottomed out in the late 1990s at 2.45 gallons per person, or about 523 drinks. For this project, we tapped into the Bureau of Labor Statistics’ Consumer Expenditure Survey which is conducted each year. Data were collected from 1996 to determine the average price of alcohol over the last decade, along with a more granular look at 2016 alcohol expenditures for various demographics. Pertaining to price, those is salvia addictive priced at $15 and above experienced positive growth in sales compared to 2020, with the greatest growth for wines at the $25 and high price tier.
One of the main items highlighted in the report is the rapid ascension of the RTD market, poised to become the second-largest alcohol category in the US in terms of volume consumption by 2021. Hard seltzers represent a 56.7% share of the total RTD category in the US, followed by flavored alcoholic beverages (FABs) (25.9% share) and ready-to-drink cocktails/long drinks (6.9%). In 2021, Gallup, Inc. reported that 60% of U.S. adults drank alcoholic beverages, which decreased from 65% as reported in 2019. The average number of drinks consumed in the previous seven days also decreased. In 2019, consumers aged 18 years and older drank, on average, 4.0 drinks in a seven-day period, but in 2021 that average was 3.6 drinks.
According to Numerator, 90% of Millennials purchased alcohol during the 52-week period ending in May 2021, compared to 84% of 21 and older Gen Z shoppers. Gen Zs reasons for not buying included “alcohol’s impact on their mood, level of alertness, and even image on social media.” Another source, T.Hasegawa, indicates, “Consumers are looking for limited-time flavors such as holiday and seasonal, nostalgic, and internationally inspired ones. Margarita, fetal alcohol syndrome face celebrities piña colada, and gin & tonic flavors dominate RTD launch activity, while mango, lime, and watermelon flavors lead the fruit, citrus, and berry fruit flavor subcategories.” Additionally, expect to see whiskey from Japan, Korea, Taiwan, and other up-and-coming producing countries such as Italy, Wales, Netherlands, and Singapore enter or become more prominent in the U.S. market. Other trends include using alternative barrels, such as cherry wood and acacia, to age whiskey and cask crossbreeding, which is the process of “blending whiskey from different cask types…[such as] bourbon barrels with…sherry or wine casks.”
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