Alcohol’s Share of US Household Spending Falls to Record Low
The share of US household spending devoted to alcohol fell last year to a record low, the latest sign that Americans continue to pull back from drinking.
The share of US household spending devoted to alcohol fell last year to a record low, the latest sign that Americans continue to pull back from drinking.
Alcoholic beverages accounted for just 0.77% of average expenditures in 2025, amounting to $630 per household, according to results of the annual Consumer Expenditure Survey published Thursday by the Bureau of Labor Statistics. That was the lowest in data from 1984, and just below the 0.78% reading recorded in 2020 during the Covid pandemic lockdowns.
Producers of alcoholic beverages have been contending with a post-pandemic slump in sales as alcohol consumption has increasingly fallen out of favor. A heightened focus on wellness among consumers has in recent years coincided with changing public health guidance on the negative impacts of booze.
Overall, the share of Americans who reported consuming alcohol fell to a record low of 54% last year and stayed at that level this year, according to the latest Gallup poll. The number of drinks per week on average edged higher in 2026, but remained low relative to recent years.
Investors have soured on the sector amid the gloomy outlook. Shares of liquor giants Diageo PLC and Brown-Forman Corp. have fallen more than 50% over the last five years, while beer producers Constellation Brands Inc. and Molson Coors Beverage Co. are down about 40% and 11% over the same period.
To combat softer trends, alcohol companies have rushed into pre-made cocktails, which offer an approachable price point and greater diversity of flavors that appeal to younger drinkers. Others have continued to offer premium versions of their products that cater to people who are drinking less, but maybe willing to spend more when they do.
©2026 Bloomberg L.P.
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