New market research suggests Americans are consuming less alcohol than they have in decades, sparking a complex debate over whether the nation is genuinely turning away from drink or simply tightening its belt.
A Decline, But Not a Historic Collapse
Data from the drinks market research firm IWSR indicates that the number of weekly alcoholic drinks per US adult is currently at its lowest point since 1995. This represents a decline of roughly 1.1 servings per person per week from a recent peak of 11.5 drinks in 2021.
However, the firm is cautious about declaring a seismic cultural shift. IWSR's long-term data shows that weekly consumption has remained remarkably stable, hovering between 10 and 12 drinks per adult since 1975. "We're not at any sort of historic low," stated Marten Lodewijks, president of IWSR.
Economy vs. Lifestyle: What's Driving the Drop?
The discussion centres on what is behind the recent dip. While public surveys and falling sales volumes have fuelled narratives about a health-conscious movement, particularly among younger generations, IWSR suggests short-term economic conditions are a bigger driver.
Lodewijks pointed to high interest rates, inflation, and political turbulence as huge pressures on consumer finances that likely affect spending habits. This view is supported by analysts like Laurence Whyatt at Barclays, who note that Gen Z's spending on alcohol as a portion of their income indicates economic pressure plays a significant role.
Furthermore, steep declines in the total volume of alcohol sold appear less dramatic when converted to drinks per person. This metric better accounts for a market shift away from high-volume drinks like beer toward stronger, lower-volume spirits.
The Gen Z Paradox: Drinking Less or Spending Less?
The behaviour of younger consumers sits at the heart of the debate. While some surveys register declines in drinking among Gen Z, separate IWSR survey data showed an increase in the number of Gen Z respondents who reported recent drinking between 2023 and 2025.
This data indicates that, despite being widely portrayed as leading a sober-curious charge, this cohort may not be shunning alcohol more than older generations. The evidence suggests their consumption might be more sensitive to cost than principle.
US alcohol sales volumes hit their lowest since 2005 last year, but IWSR concludes it will likely take years to determine if the current downturn is a permanent change in consumer habits or a cyclical reaction to economic hardship.
