This increase was much higher than the average sales growth of 7.14% in the previous five fiscal years. Similarly, Cumberland County saw a nearly 14% increase in sales, from $39.9 million to $45.5 million. The overall beer market declined by 1.2% in volume in 2024, while the craft beer industry’s share of the market remained flat at 13.3%, the same as in 2023. This decline in the craft beer industry has resulted in financial distress, with popular brewers shutting down breweries and laying off employees.
Additionally, consumer tastes and preferences are shifting, with a backlash against certain advertising campaigns and a growing interest in imported beer and craft beer. While beer sales have declined, the ready-to-drink category, including cocktails, spirits, and hard seltzers, has seen significant growth, with a 26.8% revenue increase in 2022. Alcohol-free drinks are also becoming increasingly popular, with sales growing by 35% for a retail total of $565 million in 2023. While beer sales have declined, the ready-to-drink category, including premade cocktails, spirits, and hard seltzers, has experienced significant growth. Vodka remains the top-selling spirit, with tequila and mezcal gaining popularity and outpacing whiskey sales. Of the 22 major metropolitan areas tracked by the Bureau of Labor Statistics’ Consumer Expenditure Survey, 18 reported a year-over-year increase in average alcohol spending.
How much do Americans spend on soft drinks?
While buying alcohol and drinking it in your house might cut this cost down, it’s still a ton of money. According to the Bureau of Labor Statistics, Americans spend about 1 percent of their gross annual income on alcohol. For the average household, that’s $565 a year, $5,650 in 10 years, or a whopping $22,600 over a 40-year period. Of course, I can’t be representative of every single person in my age bracket. So, I took to asking some peers — all of whom are in their 20s and 30s, and all of whose names I’ve changed — about theiraverage weekly spend on alcohol. Keep in mind almost all of these people live in urban areas, so it’s still not a completely accurate snapshot (though really, what is?), but I think their answers provide some interesting insight into how we approach this particular area of spending.
Beer sales vs ready-to-drink beverages
On average, Americans spent $583 on alcohol in 2022, with beer sales declining. However, this varies depending on the city, with average spending ranging from $512 to $1218 per person per year. For instance, North Carolina liquor sales jumped by nearly 12% in the fiscal year that ended on June 30, 2020, reaching a record of $1.37 billion.
Average Number of Drinks Consumed
On average, Americans spent $583 on alcohol in 2022, with a general slowdown in alcohol consumption. However, this figure includes all types of alcoholic beverages, and beer sales have been on a decline. However, nowhere has revenue growth in alcohol been more noticeable than with ready-to-drink cocktails and mixes. The ready-to-drink category had a staggering 26.8% revenue increase over 2022 numbers, while spirits-based ready-to-drink beverages have also started to outgrow and outpace the previously popular malt-based beverage field (bolstered by the growth of hard seltzers). There’s also been a growing popularity of non-alcoholic beer, wine, and cocktail beverages. In 2023, the US beer industry sold approximately $135 billion worth of beer and malt-based beverages to US consumers through retail establishments.
According to the Bureau of Labor Statistics, Americans spent an average of $583 on alcohol in 2022. For example, in 2019, average annual personal alcohol spending in 22 major metropolitan areas ranged from $512 to $1,218. Alcohol spending in the United States as a percentage of total expenditures has been lower only once than it was in 2022. In 2022, alcohol accounted for just 0.80% of American household spending, the lowest since 2020, the first full year of the COVID-19 pandemic. While Americans are spending less on alcohol as a percentage of their total expenditures, spending is up dollar-wise in 2022, at an average of $583.
Beer sales dropped during the pandemic
- Washington, D.C., on the other hand, ranks 10th among 22 cities in terms of alcohol spending, with an average annual expenditure of $662 per person.
- The top two advertising spenders among beer manufacturers in the United States in 2019 were Anheuser-Busch InBev (AB InBev) and Constellation Brands.
- The market has been shaken by movements like Dry January and shifting consumer preferences.
- In a year, such drinking habits would cost over $5,000 for men, and nearly $3,000 for women.
- According to the Bureau of Labor Statistics, Americans spent an average of $583 on alcohol in 2022.
- The spending habits in these cities contrast with those of other cities in the United States.
However, the average spending on alcoholic beverages varies, ranging from $512 to $1,218 per person per year. San Diego and Washington, D.C., are among the cities with the highest alcohol spending. The high cost of living in these cities may contribute to higher alcohol prices and, consequently, higher consumer spending. While I can’t give you a precise figure, I can tell you that beer accounted for 42.2% of the US alcohol market in 2023. Americans spent an average of $583 on alcohol in 2022, and total retail spending on alcoholic beverages in 2023 was $89.8 billion. While beer sales have declined, the market has seen noticeable shifts in consumer tastes and preferences.
Among adults who don’t drink, the most common reason given is that they just don’t want to, the Gallup survey found. About a quarter of nondrinkers (24%) say in an open-ended question that they have no desire to drink or do not want to. The “seltzer boom brought variety and flavor to customers,” which encourages them to be more willing to try new flavors in other beverage categories.
While both beer and wine experience volume declines, new categories like ready-to-drink beverages (which include everything from premade cocktails to spirits seltzers to hard sodas) have experienced impressive growth. The market for alcoholic beverages is dynamic, with beer sales declining in recent years. Conversely, new categories like ready-to-drink cocktails, spirits, and hard seltzers have experienced significant growth. Alcohol-free drinks are also gaining popularity, with sales increasing by 35% in 2023.
Alcoholic Beverage Preferences and Purchases
They weren’t promising they’d never drink again, but they weren’t going to make it a regular part of their social life anymore. Heavy drinkers can stop without withdrawal and are not physically dependent on alcohol. Sudden change in the drinking pattern may also lead to negative health issues. Prolonged excessive alcohol consumption can lead to stroke, heart disease, liver cancer, and high blood pressure.
Not all forms of alcohol experienced the same increase or post-pandemic decrease in sales. For instance, beer and wine have experienced different sales trajectories from hard alcohol. Yet, while beer sales have been down lately, it’s important to realize that the decline in beer’s market share has been a long time coming rather than a direct result of the pandemic.
The following table contains data from two sources with consumption statistics segmented based on age range/generation. By the early 1930s, the American government had to concede prohibition wasn’t working. It was too difficult to enforce, was leading to criminalization and the advancement of organized crime, and was preventing the government from collecting taxes on alcohol sales during a period of severe economic struggle — the Great Depression.
The COVID-19 pandemic significantly impacted alcohol sales in the United States. During the pandemic, retail alcohol sales surged, with a 20% increase from March to September 2020 compared to the previous year. This growth can be attributed to virtual happy hours and celebrity-endorsed cocktail recipes, which contributed to drinking becoming a shared experience during lockdowns.
While Millennials did engage in these youthful antics in much larger numbers, they also have to contend with this new, streamed reality as they age. This, combined with the fact that the generation is maturing to a how much does the average american spend on alcohol point where their bodies are experiencing physical health consequences, may also be a contributing factor — especially because they’re aging during a global pandemic where the focus on mortality is so acute. It was also the period when criminals like Al Capone built their wealth through bootlegging.
There were many dramatic scenes, including one led by the president himself in Washington, D.C. In that disorienting year, PocketSmith’s Global Spending Map revealed a 28% increase in year-over-year alcohol spending when controlled for inflation. It is considered alcoholic for men who take more than fifteen drinks and women who take more than eight drinks per week. Compared to wine and spirits, non-alcoholic beer “dominates” the no-alcohol category. Of the non-alcoholic beer available, non-alcoholic craft claims 28% of the share, and non-alcoholic domestic premium has a 16% share.
Consumer tastes and preferences have evolved, and a notable backlash against a Bud Light advertising campaign featuring transgender influencer Dylan Mulvaney pushed Modelo into the top spot among American consumers for the first time. This shift in brand preferences further contributed to the decline in beer’s market share. Furthermore, the increasing cost of living in major cities across the US has influenced consumer spending habits, with certain cities reporting higher alcohol spending due to higher prices and greater consumption. According to data from the Distilled Spirits Council of the United States, beer accounted for 55.5% of the total alcohol industry market share in 2000 but has been slowly declining to 2023’s market share of 42.2%. Even within the existing market share, there have been noticeable upsets that have shifted consumer tastes and preferences. Specifically, the backlash against a Bud Light advertising campaign featuring transgender influencer Dylan Mulvaney pushed Modelo into the top spot among American consumers for the first time.
- On the state level, it appears to be highest in New Hampshire and Delaware, and lowest in Utah.
- The net positive change for Cabernet Sauvignon and Red Blends was 26% and 33%, respectively, for men and 10% and 40% for women.
- The drinking habits in the United States vary, and while some individuals choose to consume alcohol regularly, the overall perception of whether the U.S. drinks a lot depends on cultural, regional, and individual factors.
- While alcohol sales boomed during the pandemic, with United States sales increasing by 20% to 40% in some states, post-pandemic sales have been mixed.
- In 2023, the US beer industry sold approximately $135 billion worth of beer and malt-based beverages to US consumers through retail establishments.
Alcohol spending in the US is influenced by both the price of alcohol and the volume purchased. While the average American spent $583 on alcohol in 2022, this varies across cities, ranging from $512 to $1218 per person per year. During the pandemic, alcohol sales increased by 20-40% in some states, with retail alcohol sales from March to September 2020 totalling $41.9 billion. While beer sales have been declining, the market for ready-to-drink beverages, such as premade cocktails and spirits seltzers, has been growing. The average annual expenditure on wine consumed at home in 2022 amounted to $112.97 per consumer unit.