Share of alcohol in US household spending dropped to record low

The share of U.S. household spending on alcohol fell to a record low last year, the latest sign that Americans are continuing to retreat from drinking.

Alcoholic beverages made up just 0.77% of average spending in 2025, or $630 per household, according to the Bureau of Labor Statistics’ annual Consumer Expenditure Survey released Thursday. This was the lowest figure since 1984 and just below the 0.78% figure recorded in 2020 during the Covid pandemic lockdown.

Alcoholic drink makers are struggling with a post-pandemic slump in sales as alcohol consumption continues to fall out of favor. Consumers’ increased focus on wellness in recent years has coincided with changing public health guidelines on the negative effects of alcohol.

Overall, the share of Americans who reported drinking alcohol fell to a record low of 54% last year and has remained at that level this year, according to the latest Gallup poll. The number of drinks per week in 2026 increased slightly on average, but remained low compared to recent years.

Investors in the sector weakened due to the gloomy outlook. Shares of liquor giants Diageo PLC and Brown-Forman Corp. have fallen more than 50% over the past five years, while beer makers Constellation Brands Inc. and Molson Coors Beverage Co. they fell by 40% and 11% over the same period.

To combat the more subtle trends, alcohol companies have jumped on pre-made cocktails that offer an affordable price and a greater variety of flavors to appeal to younger drinkers. Others continue to offer premium versions of their products to cater to people who drink less but may be willing to spend more when they drink.

This article was generated from an automated news agency source without text modification.