Beer and cider sales across the United States have fallen sharply, with new data pointing to rising petrol prices triggered by the Iran war as a key factor. Volumes dropped by 6.3% in the four weeks to May 2, according to Nielsen, accelerating from declines of around 3% between November and mid-April.
The steepest falls were recorded at convenience stores and petrol stations such as 7-Eleven, Wawa, Shell and Exxon, where volumes were down about 9% year on year in the fortnight from April 26. Analysts say motorists are cutting back on impulse purchases as fuel costs rise.
Bernstein analyst Nadine Sarwat said there was a negative correlation between the absolute price of petrol in a given state and the sequential change in beer, malt and cider volumes. California saw the biggest drop in sales, down 16%, with average petrol prices around $6.147 per gallon owing to high taxes and stricter fuel rules. Arizona and Texas also recorded declines of 10% and 7% respectively.
The Midwest is bearing the brunt of the oil shock, with petrol prices in Ohio up roughly 72% since the conflict began ten weeks ago—double the increase in California. Indiana, Illinois, Michigan and Wisconsin have also seen steep rises, while the national average now hovers around $4.52 per gallon, up 52% since the start of the Iran war.
Longer-term demographic shifts are compounding the trend. A Gallup survey published in August found only half of adults aged 18 to 34 drink, down from 59% in 2023, helping push 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 earlier and 28% in 2018.
