Alcohol Spending Hits Record Low for Households

The portion of household budgets spent on alcohol fell to 0.77 percent in 2025, marking the lowest level on record.

Updated on Oct. 30, 2026 in Spending

Gouache-painted editorial illustration of a sparkling water glass with lime, symbolizing the shift toward health-conscious consumption trends. — U.S. household spending on alcohol dropped to 0.77 percent in 2025, reaching the lowest recorded level since 1984 amid shifting wellness trends. AI Illustration. Upload story photo >

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In 2025, U.S. household spending on alcohol fell to 0.77 percent of total expenditures, the lowest level recorded since 1984. This shift represents an average annual household spending of $630 as health consciousness and social influence reshape drinking habits across the country.

Why it matters

The decline in spending is driven by a broader trend of health-conscious consumer choices and shifting social habits, particularly among younger generations. As individuals prioritize wellness, these changes in consumption are impacting industry sales and prompting companies to pivot toward premium or pre-mixed products.

Average household spending on alcohol hit $630 in 2025, accounting for just 0.77 percent of total budgets. While the overall percentage of adults who drink remained steady at 54 percent in 2026, wine and spirit sales volume dropped by 6.5 percent over the 12 months ending in June 2026.

The players

Bureau of Labor Statistics

The federal agency that tracks national labor and economic data, including household spending habits.

Diageo

A global alcohol producer whose stock price has dropped by more than 50 percent over the past five years.

Brown-Forman

A spirits company whose stock price has declined by over 50 percent in the last five years.

The details

Alcohol companies are responding to this reduced demand by shifting their strategies to focus on high-end premium products and pre-mixed canned or bottled cocktails. This transition aims to capture a more selective market as heavy drinking rates have declined among key demographics aged 30-49. Meanwhile, the industry faces a surplus, with American whiskey inventory reaching 1.5 billion proof gallons by the end of 2024.

1939: Gallup began conducting alcohol consumption surveys.
1984: The Bureau of Labor Statistics began tracking alcohol spending data.
2020: Household spending on alcohol was 0.78 percent.
2025: U.S. household alcohol spending reached a record low of 0.77 percent.
2026: The drinking rate among American adults remained at 54 percent.

Money Landscape

The 2025 spending data reflects a notable departure from historical norms established by the Bureau of Labor Statistics' Consumer Expenditure Survey. This cooling in alcohol expenditure aligns with a broader shift in consumer health preferences observed over the last several years.

Households re-evaluating their discretionary budget may find that reducing or eliminating alcohol consumption offers a significant opportunity for savings. If you are tracking your spending, consider reviewing your bank and credit card statements to see how alcohol purchases affect your monthly budget.

The takeaway

The decrease in alcohol spending signals that many households are realigning their habits with wellness goals rather than purely financial constraints. Reviewing your annual discretionary spending categories, including dining and entertainment, can help you identify areas where your costs may be shifting.