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November 21, 2024
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Are Americans Drinking Less to Save Money?

Are Americans Drinking Less to Save Money?

Since the end of Prohibition (1920–33), drinking has been part of many Americans lives. From cocktails with friends to wine at Thanksgiving dinner, drinking is around. In fact, 62 percent of Americans say they drink alcohol. But that may be changing.
Many Americans are turning their backs on booze. Although some cite health reasons, many others are saying no to alcohol to save money. This is especially true among young people. But is this a viable trend? Are Americans starting to drink less to save money?

Who’s Been Drinking

Income and age are factors when determining who is drinking alcohol. According to the Pew Research Center, 58 percent of adults 18–34 drink while 66 percent of those age 35–54 drink alcohol. Sixty-one percent of adults 50-plus drink.

People with higher incomes also drink more. Seventy-nine percent of those with a household income of $100,000-plus drink alcohol.

And, finally, college graduates ring in as frequent drinkers: 74 percente of them enjoy an alcoholic beverage.

What Do Americans Spend on Alcohol?

Nielsen Catalina Solutions reports that Americans say they spend approximately $105 on alcohol per month. That breaks down to $58 at the grocery store and $47 at restaurants. That equates to $1,260 annually.

But according to Addiction Group, Americans could be spending $200–300 monthly if they drink alcohol every day. That can add up to be $2,400–3,600 annually.
Ria Health estimates it’s even higher for some drinkers. Heavy drinkers who have three or more drinks per day could end up spending $5,475 or more per year. The company’s website has an alcohol cost-saving calculator you can use to determine how much your drinking is costing.

Stopping Drinking to Save Money

In 2022, inflation went as high as 9.1 percent, and many people haven’t financially recovered from that. Inflation is now hovering around 3 percent, but many Americans are playing catch-up with their savings and are still cutting expenses. Alcohol is one of those expenses.

One in two adults are drinking less in 2024 to save money. And the numbers show that overall drinking is down from 2023.

In 2023, Americans had on average four alcoholic drinks weekly. Those same people are now drinking three drinks per week. And with this reduction in drinking comes a savings.

Millennials had the biggest downward shift in their drinking habits. They decreased by 40 percent since 2023. They went from drinking five drinks a week to three per week.

Spending Related to Alcohol

But there are other monetary costs to drinking than just buying beer or wine. There are also those online purchases that were fueled by that glass of wine. Seventy-nine percent of alcohol users made at least one purchase when influenced by alcohol. If you’re drinking nightly or weekly, this can add up fast.

Many who go out to drink end up paying for an Uber or Taxi to take them home. If you’re out one or two nights a week, it could be doubling your drinking expenses.

And although it’s not spending money, the lost time of recovering from a night of drinking can be costly.

Alcohol Purchase Habits

The most popular alcohol is wine followed by spirits and beer. Alcohol has ebbs and flows to purchasing cycles. For example, purchases are usually down in January compared to December. But considering December is a higher party time, that’s not a surprise.

In 2023, December was one of the most popular months to buy alcohol, followed by March and May. That changed from 2022 when alcohol sales were centered around summer and winter holidays.

Non-Alcohol Beverages Trending Upward

Dating back to the Prohibition era, non-alcoholic drinks and mocktails aren’t new. But they didn’t become commercially successful until the late 1970s.

According to Numerator, a market research firm, sales of non-alcohol drinks and mocktails are growing. Over the last two years, these drinks have been the third-fastest growing category.
IWSR, a leader in data, analytics, and insights for the beverage alcohol industry said that in 2023 overall volumes of non-alcohol drinks rose 29 percent compared to 2022. Growth was driven by non-alcohol beer and cider. They accounted for 81 percent of non-alcohol sales and had a 30 percent growth. Non-alcohol wines grew by 18 percent.

In 2024, the non-alcohol industry is expected to grow by $500 million.

Alcohol Consumption Trends Downward

There’s still drinking. But many Americans are taking Nancy Reagan’s advice and just saying “No” to to that wine and beer.

Millennials are especially taking heed to that philosophy, since their drinking has decreased by 40 percent. Overall, the younger generation is thinking twice before reaching for that cocktail.

College graduates outperform everyone when it comes to imbibing. They ring in at 74 percent.

But Americans as a whole, are reaching for that non-alcoholic beverage.

The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.

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