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 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.”
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 eco sober house 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.
Dry January
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.
People Tell Us Their Money Spent On Alcohol Each Week
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, 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.”
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 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.
How has spending changed?
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%.
Alcoholic Beverage Consumption and Purchasing Trends 2024
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.
Furthermore, while multi-cultural consumers (African American, Hispanic, Asian, and Others) accounted for 37% of those of legal drinking age, they accounted for 39% of the beer volume and 41% of the spirits volume consumer, but only for 33% of wine volume consumed. The year saw a reversal in the volume declines from previous years seen in the wine category. While imported wines grew +2.5%, the tariffs placed upon certain EU states by the Trump administration saw growth from markets not affected by them.
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.
Which demographics have driven increased spending on alcohol over the 20 years studied? Our findings suggest that older Americans increased steven tyler injured 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).
Alcoholic beverage preferences and purchases
Among those ages 35 to 54, the shares who do these things have remained relatively stable over what foods contain alcohol time. Among adults who don’t drink, the most common reason given is that they just don’t want to, the Gallup survey found. About a quarter of nondrinkers (24%) say in an open-ended question that they have no desire to drink or do not want to. In fact, you’re welcome to share our images and information with your own audience for any noncommercial use. When it comes to your health and hard-earned money, it’s certainly an experiment worth trying. According to our data, recent decades have seen a definite surge in spending on alcohol, particularly in some places and populations.
- You may wonder, “How much is a premium-and-above bottle of wine or spirits?” The following table provides price bands as published by IWSR, Forbes.com, Winefolly.com, and IRI.
- Brad Nichols, Flavorman’s director of Business Development, indicated that “coffee will also continue to expand flavorings and follow-suit of its symbiotic pollinating friends, via botanical and herbal roots.”
- Additionally, New York and Chicago ranked in the bottom five in terms of average alcohol expenditures.
- Pertaining to price, those 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.
The percent change in total volume for certain beverages and the percent change in premium-and-above alcohol volume in 2022, as reported by IWSR are listed below. NielsenIQ researchers did find that it was not an “all or nothing” decision regarding non-alcoholic purchases, but rather 78% of those who purchased non-alcoholic beverages also purchased beer, wine, and spirits with an alcoholic beverage content. Consumer data published by Drizly in 2021 revealed that sales for non-alcoholic wine, beer, and spirits “place among Drizly’s fastest-growing subcategories year-over-year” and that “[n]on-alcoholic beer was the platform’s biggest non-alcoholic seller.” Of the three categories, non-alcoholic liquor grew 200% year-over-year.
One area of interest was low-alcohol wines which doubled their volumes in 2020, with many major brands entering the category. U.S. consumer demand for beer continues to shift to “premium options and new and exciting alternatives” when selecting the beverage to consume off-premise. Such offerings that have garnered consumer attention include craft beers (annual production of fewer than 6 million barrels) and imported and domestic super-premium beers (which were categorized in 2012 as priced at $22 and higher per case).
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.