Drinking alcohol has long been a part of American culture, with many people enjoying cocktails with friends or a glass of wine at Thanksgiving dinner. However, it seems that a growing number of Americans are turning away from alcohol, citing reasons such as health concerns or the desire to save money. This trend is particularly noticeable among young people. But is this shift towards sobriety a sustainable trend? Are Americans really drinking less to save money?
When it comes to alcohol consumption, income and age play a significant role. According to the Pew Research Center, 58 percent of adults aged 18-34 drink alcohol, while 66 percent of those aged 35-54 partake. Among adults aged 50 and above, 61 percent consume alcohol. Additionally, those with higher incomes tend to drink more, with 79 percent of individuals earning $100,000 or more per year reporting alcohol consumption. Furthermore, college graduates are more likely to be frequent drinkers, with 74 percent of them enjoying an alcoholic beverage.
So, how much do Americans actually spend on alcohol? According to Nielsen Catalina Solutions, the average American spends around $105 per month on alcohol. This breaks down to approximately $58 spent at the grocery store and $47 spent at restaurants. Annually, this amounts to $1,260. However, the Addiction Group suggests that individuals who drink alcohol every day could be spending $200-300 per month, totaling $2,400-3,600 per year. For heavy drinkers who have three or more drinks per day, the costs can be even higher. Ria Health estimates that these individuals could end up spending $5,475 or more annually on alcohol.
Given the financial challenges many Americans face, it is not surprising that some are choosing to cut back on expenses, including alcohol. In 2022, inflation reached a high of 9.1 percent, leaving many people struggling to recover financially. Although inflation has since decreased to around 3 percent, many Americans are still trying to catch up with their savings and reduce their expenditures. Alcohol is one area where people are making cuts.
Recent data suggests that this trend of drinking less to save money is indeed on the rise. In 2024, one in two adults reported drinking less to save money, and overall drinking rates have decreased since 2023. In 2023, the average American consumed four alcoholic drinks per week, but that number has now dropped to three per week. Millennials have experienced the most significant decline in drinking habits, with a 40 percent decrease since 2023. They have gone from consuming five drinks per week to three. This reduction in alcohol consumption translates to savings for individuals who are looking to cut costs.
However, the expenses associated with alcohol go beyond just the purchase of beer or wine. Many people make online purchases while under the influence of alcohol, with 79 percent of alcohol users admitting to making at least one purchase influenced by drinking. This can add up quickly if someone is drinking regularly. Additionally, those who go out to drink often have to pay for transportation home, such as an Uber or taxi, which can further increase the expenses related to drinking. Furthermore, the time lost from recovering after a night of heavy drinking can have its own costs.
When it comes to alcohol purchases, wine is the most popular choice, followed by spirits and beer. Alcohol sales tend to have certain patterns, with purchases usually decreasing in January compared to December. However, December remains one of the most popular months for buying alcohol, followed by March and May. These trends have shifted from 2022 when alcohol sales were more centered around summer and winter holidays.
While alcohol consumption may be declining, the market for non-alcoholic beverages and mocktails is on the rise. Sales of these drinks have been the third-fastest growing category in the last two years, according to market research firm Numerator. In 2023, overall volumes of non-alcoholic drinks increased by 29 percent compared to 2022. This growth was primarily driven by non-alcohol beer and cider, which accounted for 81 percent of non-alcohol sales and experienced a 30 percent growth. Non-alcohol wines also saw an 18 percent increase in sales. The non-alcohol industry is expected to grow by $500 million in 2024.
In conclusion, while alcohol consumption is still prevalent in American society, there is a noticeable shift towards drinking less, particularly among young people. Factors such as income, age, and education level influence alcohol consumption rates. Many individuals are choosing to cut back on alcohol to save money, especially in the face of financial challenges. However, the expenses associated with drinking go beyond just the cost of the alcohol itself, with additional costs like online purchases and transportation adding up. As a result, non-alcoholic beverage sales are on the rise, offering an alternative for those looking to enjoy a drink without the alcohol content.
