Key takeaways
- Consumers are drinking less alcohol: as evidenced by new lows in Gallup’s annual drinking survey.
- An increased interest in health and wellness is one of the drivers of this trend: but it’s not the only one.
- Alcohol no longer plays the same key role in social occasions; while financial concerns are prompting people to rein in spending on little luxuries
The percentage of US adults who drink alcohol has fallen to a 90-year low. Today, only 54% of US adults say they drink, according to Gallup’s latest poll.
But why aren’t people drinking alcohol? There are many more factors at play than simple health trends.
Breaking down the health and wellness driver
From 1997 to 2023, at least 60% of Americans reported drinking alcohol. But that figure has been steadily declining: from 62% in 2023 and to 58% in 2024, then down further to 54% today.
Younger adults are even less likely to drink alcohol: with the rate falling from 59% in 2023 to 50% today.
But why? Health and wellness is the most commonly-cited reason for the moderation trend, and with good reason.
Breaking down what that means reveals some shifts in consumer attitudes. In the past, consumers might have been vaguely aware that alcohol is ‘bad’ for you. Today, however, they’re starting to understand specific health concerns. Take, for example, calls for cancer warning labels on alcohol: highlighting a risk that many consumers were previously unaware of.
“People are increasingly health-conscious,” says Amanda Paul-Garnier, vice president of marketing at Bottle Raiders and the founder of New York City’s zero proof festival, Drinks with Benefits.
“With the high cost of healthcare in the US and reports such as the WHO’s declaration that no level of alcohol is safe, awareness of alcohol’s health risks is spreading quickly.”
But it’s not just about health and wellness. The increasingly online component of our lives also has an impact.
“For older Millennials, meeting up in person was the norm, often with alcohol serving as a social ‘lubricant’,” said Paul Garnier.
“Today, younger generations connect through social media and digital platforms, where every interaction leaves a footprint. This shift makes people more self-aware about their behavior and image, reducing the role alcohol once played in easing social interactions.”
Tightening the purse strings
A third factor is also at play: money.
In fact, new data from MMR Research shows that affordability is the key reason people are cutting back alcohol.
Nearly four in 10 UK consumers (39%) say they are cutting back on their alcohol intake because of finances: compared to 22% for health and fitness goals and 14% for a desire for mindfulness.
“Affordability is the main reason people give for cutting back and the cost of living in the UK will certainly be playing a role, but the sum total of more structural, lifestyle changes remain the biggest long-term challenge for the alcohol industry,” said Andrew Wardlaw, chief ideas officer at MMR Research.
“That includes things like health and wellness but also how we spend our time, with the rise of gaming, streaming and scrolling eating into hours that once might have been dedicated to socializing in person.”
In the US, financial concerns are also a driving force in the downwards trend in alcohol consumption.
Market research platform Attest conducted a survey into US Gen Z drinking trends last year. While the survey found that health was, indeed, a factor: researchers also found that cost-of-living challenges and inflation are biting.
In fact, 31% of consumers said they’d changed their alcohol purchasing behavior to help manage spending: and a quarter had stopped drinking entirely.
Many other factors also play into this financial cut-back: the rise of AI, for example, means people feel less secure in their jobs and less certain about long-term financial security.
But even if life becomes financially easier for consumers, the turmoil of recent years could have lasting implications on how people drink. If financial concerns lead to people cutting back and adopting healthier habits, they’ll be keen to embrace moderation and continue those new and healthier lifestyle choices.
