Beer sales in the United States have dropped 6.3% in the four weeks to May 2, according to Nielsen data, as surging petrol prices curb consumer spending. The decline is most pronounced at convenience stores and petrol stations like 7-Eleven and Shell, where volumes fell about 9% year-on-year in the two weeks from April 26.
The slump marks a sharp deterioration from earlier in the year, when declines averaged around 3% between November and mid-April. Bernstein analyst Nadine Sarwat noted a negative correlation between state-level petrol prices and beer sales growth, with California experiencing the steepest fall of 16%. The state’s average petrol price of $6.147 per gallon, driven by high taxes and stricter fuel regulations, is the highest in the nation.
Arizona and Texas also saw notable declines of about 10% and nearly 7%, respectively. Meanwhile, the Midwest is bearing the brunt of the Iran-related oil shock, with Ohio seeing petrol prices rise roughly 72% since the conflict began 10 weeks ago—about double California’s increase. Indiana, Illinois, Michigan and Wisconsin are also experiencing steep jumps.
Analysts say convenience stores are particularly affected as they rely on commuter traffic and impulse purchases, both of which are slowing with average US petrol prices hovering around $4.52 per gallon—up about 52% since the start of the Iran war. The trend is compounded by a broader decline in alcohol consumption, especially among younger adults.
A Gallup survey found that only 50% of adults aged 18 to 34 drink, down from 59% in 2023, pushing the national drinking rate to a record low of 54%. For the first time, a majority of Americans (53%) said moderate drinking is bad for health, up from 45% a year ago and 28% in 2018.
