Beer sales are going flat nationwide, raising another red flag that higher gas prices are having an impact on consumer spending. According to new sales data from Nielsen, annual beer sales volumes were down 6.3 percent in the four weeks to May 2.
The data shows that sagging sales at convenience store chains like 7-Eleven and gas stations are a big part of the slide, thanks to expensive gasoline denting demand for beer purchases. But it was California that led the nation with the biggest statewide decline in beer sales, according to Nielsen, with a 16 percent slide in annual volume.
California has the most expensive gas in America, thanks to charging the highest state gas taxes and requiring gas stations to sell a unique blend of cleaning-burning gasoline. AAA reports the average gasoline price in California has hit $6.147, not far from the all-time high of $6.438 in June 2022.
Wall Street analysts warn that convenience stores are highly sensitive to gas station traffic and purchases of things like beer that are tied to commuting and travel - all of which is under pressure as average gas prices surge higher. Beyond California, the states of Arizona and Texas have also seen notable drops in beer sales, with volumes down 10 percent and nearly 7 percent, respectively, over the same time.
While the impact of gas prices is a compelling driver of lower beer sales right now, broader trends are also hard to ignore. According to an August 2025 Gallup survey, only 54 percent of US adults drink alcohol, a record low in 90 years of data. Gallup’s findings marked a big decline from the 62 percent of Americans who said they drank alcohol in 2023 - and the deeper data shows that 53 percent of people see even moderate drinking as harmful.
Beer consumption in the US is on a long-term decline, hitting its lowest levels in over a generation as consumers shift toward spirits, wine, and non-alcoholic alternatives. In February, global brewing giant Heineken reported a 1.2 percent decline in total sales volumes in 2025, while AB InBev reported that Bud Light and Budweiser continue to post double-digit volume declines. Constellation Brands - which distributes Mexican brands Corona and Modelo in the US - is a rare standout, continuing to grow sales despite the industry’s broader weakness.
