The U.S. surgeon general has issued a warning regarding the health risks associated with alcohol consumption. Interestingly, this message seems timely, as statistics reveal that many Americans—especially younger individuals—are already gravitating towards lower alcohol consumption rates.
Alcohol sales volume in the U.S. fell 2.8 percent in the first seven months of 2024, according to the beverage industry analysis firm IWSR. Notably, this decline spans across nearly every major category, with beer sales down 3.5 percent, spirits decreasing by 3 percent, and wine dropping by 4 percent. Major industry players, including Pernod Ricard, Molson Coors, and Anheuser-Busch InBev, have similarly reported sales declines in their recent quarters.
The trend among younger Americans is prominent, with multiple surveys indicating a significant drop in alcohol consumption. The Bureau of Labor Statistics’ Consumer Expenditure Survey highlighted that individuals under 25 spent over 60 percent less on alcohol in 2023 compared to 2003, when adjusted for inflation. A Gallup poll conducted in 2024 showed that the proportion of younger adults who reported drinking beverages fell from 72 percent to 59 percent over the past two decades.
Pushing this cultural shift further is the observation that 45 percent of those from Generation Z, aged 21 and older, reported abstaining from alcoholic drinks in 2023 according to a NielsonIQ survey. Kasey Creswell, an associate psychology professor at Carnegie Mellon University, attributes this change to evolving social norms where younger individuals prefer activities that are not centered around alcohol and place a greater emphasis on health.
The onset of the pandemic also provided individuals the opportunity to reevaluate their drinking habits. Creswell noted, ‘People had the chance to step back and reassess their relationship with alcohol, giving them clarity on their triggers and what it meant for them.’ She emphasized the desire for informed and deliberate drinking behaviors.
Additional data from Gallup suggested that views on moderate drinking have shifted as well; between 2016 and 2024, the percentage of respondents considering moderate drinking as beneficial for health dropped from 19 percent to 8 percent, while the perception of it being harmful increased from 26 percent to 45 percent. Alarmingly, 65 percent of Americans aged 18 to 34 now view moderate drinking as detrimental to health.
Individuals like Kim Gonzales, 28, epitomize this shift. Gonzales, who used to drink multiple times weekly during college, recognized her decreasing alcohol consumption as she progressed through her twenties. After listening to a thought-provoking podcast, she reconsidered her drinking habits and set a target for 2024 to minimize her alcohol intake to just 12 occasions, restricted to special events such as weddings and birthdays. Gonzales reported feeling an improvement in focus and stamina as she reduced her alcohol consumption.
Interestingly, the push for healthier drinking alternatives has led to a surge in nonalcoholic spirit sales, which soared by 29 percent between 2022 and 2023. The global nonalcoholic beverage market is projected to grow by over $4 billion by 2028.
Although a portion of alcohol consumption appears to have remained stable, with annual spending increasing since the pandemic, data indicates that growth predominantly results from older generations. Spending on alcoholic beverages has notably dropped by 11 percent among those aged 25 to 34 and nearly 3 percent among 35 to 44, signaling a definitive shift away from alcohol among younger Americans.
Laurence Whyatt, a beverage industry analyst, clarified that many in Generation Z may yet develop their drinking habits later in life rather than abstaining permanently—asserting ‘People have been waiting until legal drinking age and then consuming a fairly normal amount.’
While alcohol may seem less relevant for younger generations, analysts indicate that it doesn’t equate to a lifetime of abstinence, suggesting that this demographic may opt for quality over quantity in the future when drinking socially.
In a recent statement, Pernod Ricard acknowledged ongoing challenges within the alcohol industry, including the impact of inflation and interest rates but remained optimistic about a gradual normalization post-pandemic: ‘We remain confident in the gradual improvement of the U.S. spirit market, returning to growth in due course.’
Comments are closed