The alcohol consumption market in the United States covers a wide range of products, trends, and shifts in consumer habits. Younger adults are driving the trend away from beer and toward craft beers and ready-to-drink cocktails.
Our data indicates that spending and volume continue changing each year, impacted by ever-evolving health trends, state legislation, and social drinking culture.
Alcohol: A Comprehensive Exploration from Molecule to Society
What’s Driving Alcohol Market Shifts?
So much is shifting in the alcohol world, not just on the shelf but behind the counter. Economy, culture, law, public health. We are witnessing shifts from many directions. Let’s explore some of these major drivers in more detail.
Economic Ebb and Flow Effects
When times are tough financially, consumers don’t necessarily stop drinking, but they do adapt. Shrinking disposable income leads more people to choose value brands or forego a night out altogether. While inflation is impacting everyone’s pocketbook and raising prices across the board, consumers react to rising costs by changing purchasing behavior.
Once the economy recovers, consumers’ spending on premium spirits increases. This is why we are seeing the growth of categories like tequila and mezcal, both in value and volume. Consumers are willing to pay a premium for quality and find ways to do so when they can.
Cultural Currents Reshaping Norms
Younger generations are driving the most significant shifts toward healthier drinking patterns. That’s right— Millennials and Gen Z are driving nearly two-thirds (65%) of non-alcoholic beverage sales in the US! They’re health conscious, too, choosing to leave out alcohol in favor of lower- or no-alcohol beverages.
Social media influences alcohol market trends. Social media is a key driver in the alcohol market, with RTDs and experiential marketing increasing in popularity. The culture of remote work changes when and how people shop, as well.
The Public Health Conversation
Today, health campaigns can quickly spread their message to millions of people, and attitudes around drinking are shifting at lightning speed. By 2023, just 10% of Americans viewed moderate drinking as healthy, a decrease from 19% in 2016.
The growth in non-alcoholic options is enormous, with beer and cider accounting for the majority of NA servings. The market for these drinks exploded by 20% in 2022, and the growth shows no signs of slowing down.
Key Shifts Shaping Today’s Drinking Habits
Today’s alcohol market looks incredibly different than just even a decade ago. We’re witnessing a fundamental shift in what, how and why people consume alcohol. New trends, new products, new values, new lifestyles — these are all influencing the changes that are happening. This is perhaps most strikingly true in urban areas across North America and Europe. Here’s a look at the key changes driving today’s drinking habits.
1. Ready-to-Drink Revolution Continues
Ready-to-drink (RTD) cocktails aren’t a trend. From the grocery store to the gas station, they’re everywhere. The biggest appeal is convenience—no mixing, no hassle. You can pick up a 4-pack to throw in the cooler or head to the tailgate party.
Big brands and craft makers alike are slinging more flavors, from spicy margaritas to berry spritzers. Pressure to share memorable moments is evident as ads depict drinkers enjoying life in social, group settings—an approach that resonates strongly with young adults seeking both variety and convenience.
The RTD market is projected to double by 2029, demonstrating just how hungry people are for convenient solutions.
2. Premium Spirits Gain Ground
We’re witnessing a shift towards quality over quantity, with consumers gravitating towards premium import spirits. They’re looking for less volume but higher quality. Craft distilleries make even the cheeriest spirits a little more special.
Specialized blends, small-batch releases, and sweet bottle designs help to elevate the experience. Social media certainly plays a role, too, as posting a photo of your drink has become part of the new status quo. This trend is most evident in countries where the overall amount consumed has not increased, but where consumers are spending more on alcohol.
3. Agave Spirits’ Star Ascends
Tequila and mezcal are hot right now. A lot of this is being driven by younger drinkers who appreciate their unique taste, strong stories, and heritage. Now they can go into bars and enjoy a wider variety of agave-based cocktails.
They’re being exposed to the culture and craft of making agave spirits. Producers talk more about how they grow and harvest agave in eco-friendly ways, which matters to buyers who care about the planet.
4. Sober Curious? Non-Alcoholic Boom
A huge demographic, largely consisting of Gen Z and Millennials, are consuming less alcohol. Some are choosing to skip alcohol altogether. Monthly non-alcoholic beer drinkers in the U.S. Increased by 16% since 2018.
The drinks market with no alcohol spiked 20% last year and is expected to continue increasing. This wide variety of alternatives offers more consumer choice than ever, from spirits to craft sodas and everything in between.
Brands are savvy enough to create targeted ads and use social media to ensure that these options feel fresh, entertaining, and exciting rather than boring.
5. Niche Spirits: Winners and Losers
The field is open for the quirky, unique, unusual, and niche brands. Others win simply by having a good narrative or impressive history. While some overtake their competitors and thrive, others cannot even find the attention in a saturated market.
Unique flavors and small runs can help these brands stand out, but it’s still tough unless they tap into trends or build loyal fans.
6. Health Consciousness Takes Center Stage
Consumers are increasingly aware and concerned about what’s in their glass. Low-calorie, low-alcohol, and transparent labeling are all major selling points today.
More than four in ten Americans say that alcohol is bad for health. Consequently, brands need to reformulate their recipes and rework their labels. The demand for transparency around ingredients and source information continues to drive the future of the market.
How Different Generations Drink Now
What today’s drinking looks like by age group Millennials and Baby Boomers have very different experiences—and therefore very different attitudes—when it comes to alcohol. Additionally, we see big differences in what they shop for and how brands market to each group. In the U.S. Europe, these changes are driven by cultural shifts in values, technology, and, most importantly, by the market itself.
Gen Z’s Mindful Moderation Approach
Gen Z knows how to have fun. They drink 20% less than the preceding age cohorts. 45% of Gen Z adults, almost half, didn’t drink at all in the past year.
When they do drink, they prefer drinks that are lower in alcohol and calories. They are incredibly passionate about brands who compete on social/eco values. Social media influences how they drink, as well.
People are concerned about their appearance on social media, so they’re choosing beverages that portray a health-conscious image. They opt for alcohol-free or low-cal beverages. Spirit-based seltzers are particularly popular here, with 21–34-year-olds accounting for 25% of that market.
Gen Z gives a fair shot to brands that speak about values, beyond just flavor.
Millennial Preferences: Exploration vs. Tradition
Millennials are split. Older Millennials drink more than younger ones, but both like to try new things. Craft beers and artisanal spirits stand out with this crowd.
Tequila is a top pick. Storytelling draws their interest—brands that share how they make their drinks or tie to travel, culture, or local roots get more attention.
Experiences matter, so drinks that fit into social or travel plans get picked up more often.
Gen X and Boomer Loyalty Tested
Gen X and Boomer loyalty tested Members of Gen X and Boomers have a reputation for being brand loyal. Approximately 65% of Boomers remain boozers, and consumers over the age of 65 are drinking 25% more than the national average.
New brands and drinks, especially ready-to-drink cocktails, are causing enough to switch. Gen X loyalty Nostalgia is a powerful force.
Not surprisingly, a lot gravitate toward beverages they associate with childhood, but there is interest in trying new versions. The market has come full circle to mix comfort with innovation.
