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Alcohol Use Falls as Costs Rise and Habits Shift

Higher prices are pushing drinkers to cut back.

Overview

  • Industry data show alcohol volumes fell 2% worldwide in 2025 and 5% in the U.S., signaling a broad pullback.
  • A Gallup survey found only 54% of U.S. adults drank in 2025, the lowest share in the poll’s 90-year record.
  • Aluminum tariffs and pricier energy raised can costs by roughly 25–30% for some brewers, with tensions involving Iran contributing through higher fuel and aluminum costs.
  • Tighter immigration enforcement reduced foot traffic from Hispanic shoppers, which Constellation Brands said hurt beer sales, though some companies signaled early signs of a rebound this spring.
  • Shoppers are buying smaller packs, going out less, and shifting toward ready-to-drink canned cocktails even as overall volumes decline.