Alcoholic Beverage Consumption and Purchasing Trends 2024

An updated article with trends and data from mid-2024 is available: Alcoholic Beverage Trends 2025

Alcohol Consumption

According to Gallup, based on data collected July 3–27, 2023, 62% of U.S. consumers aged 18 and older had "occasion to use alcoholic beverages such as liquor, wine or beer."  Since 2018, excluding data for 2020 (which Gallup did not record because of the coronavirus pandemic), this percentage has ranged from 60% in 2021 to 67% in 2022. 

 Other data that describes alcoholic beverage consumers aged 18 and older in 2023:

• 62% of men and 62% of women
• 79% of those with a household income of $100,000 or more
• 74% of college graduates

When segmented by age:

• 58% of 2023 survey participants between the ages of 18 and 34,
• 66% of those aged 35 to 54 years, and
• 61% of those at least 55 years of age consumed alcohol. 

While Gallup did not report consumption rates based on generation (e.g., Baby Boomer, Gen X), those who are in the 18 to 34 age category would include the "younger" portion of the Millennial generation and the adult proportion of Gen Z (born between 1997 and 2012).  

Average Number of Drinks Consumed

N.C. Solutions reported in January 2024 that, on average, consumers were "having three drinks per week, down from four per week in 2023."  Gallup also reported that alcoholic beverage drinkers consumed "on average…four drinks in the past week," in July 2023.

• The average for those 18 to 34 years of age was 3.66, and 3.61 for those aged 35 to 54 years, compared to 4.24 for participants aged 55 and older. 
• The average number of drinks in the "past week" was higher for those with a high school degree or less (5.56 drinks) than those with some college education and college graduates. 
• Those with an annual household income of $100,000 or more consumed an average of 4.56 drinks in the "past week," which was higher than those with an income of $50,000 to $99,999 and those with an income of $49,999 and less.
• Males and white participants also consumed more drinks, on average, than their counterparts, females and non-white participants, respectively.   

Beverage of Choice

When asked to indicate what their drink of choice was in 2023:

• 42% of 18- to 34-year-olds selected beer, 40% spirits, and 16% wine
• 34% of 35-to-54-year-olds selected beer, and 34% selected spirits, with 31% choosing wine
• 38% of 55 and older consumers selected beer, 23% spirits, and 35% wine

Aside from age range, who was more likely to select beer as their beverage of choice?  Compared to their counterparts, those with an annual household income of less than $50,000 (48%), males (53%), as well as those with a high school level of education or less (52%). 

For wine, a greater percentage of those who were female (44%), college graduates (39%), and those with an annual household income of $100,000 or more (35%) selected the beverage compared to their counterparts. 

Percent differences between and among groups (e.g., gender, education) were not as pronounced for spirits. 

While Gallup data did not report ready-to-drink (RTD) beverage consumption, Nielson reports that "RTDs over-index with women, Millennials and Gen Z consumers, and more importantly, the category resonates with a more racially and ethnically diverse consumer base relative to conventional beverage alcohol, especially wine and beer."

Additional data published by Circana, LLC, revealed for the 52 weeks ending December 31, 2023:

• 25% of their panel purchased beer, wine, and spirits, a decline from the previous year's report. 
• An additional 17.5% consumed only beer, and 11.8% consumed only spirits; both percentages were an increase compared with the prior year
• The percentage of those who only consumed wine, 12.6%, decreased from the previous year. 
• The report also indicated that the "percentage of consumers drinking both wine and beer is down slightly," but the "percentage of consumers who drink a combination of spirits and wine, or spirits and beer, is up modestly."

The 2024 Silicon Valley Bank State of the US Wine Industry Report reports 2022 data, released by the Wine Market Council, showing that 39% of U.S. consumers, aged 21 and older, drank wine.  This is a combination of:

• "Core wine" drinkers, 23% of survey participants, who consumed wine at least once a week, and
• "Marginal consumers," 16% of survey participants, who consumed wine "at least every 2-3 months" and "who drink wine 1-3 times per month."

A Closer Look at Gen Z

Industry members should not rely solely on generation to build a likely buyer profile; rather, it is essential to consider a consumer's attitudes (i.e., what they think) and behaviors (i.e., what they do) when developing a promotional strategy.  Additionally, all individuals who were born between 1997 and 2012 and categorized as Gen Z do not act or think in the same way, but world/national events are likely to have had an impact on their personalities.  

However, at least one data source indicates that Gen Z consumes 20% less alcohol per capita than other generations. Below are some details that describe those of legal drinking age (LDA) concerning alcohol consumption according to Ipsos:

• Increased interest in a greater variety of beverage categories.
• Greater likelihood to consume "no/low alcohol alternatives or experiential/premium offerings."
• They are interested in the nutritional content of what they drink.

Neilson indicated that in 2023, 45% of Gen Z, aged 21 and older, had not consumed alcohol, a 2% decrease from 47% in 2022.  This percentage is comparatively higher than the percentage of other generations who did not drink alcoholic beverages, which ranged from 32 to 36%.  

Why do Gen Z Consumers Choose Not to Drink Alcohol? 

A few reasons include:

• "Gen Z prioritizes wellness, both mental and physical, more than generations."
• "Fifty percent of Gen Z reports regularly working out, compared to 45 percent of people from other generations."
• To save money

Also, according to Susie Goldspink, the head of no and low alcohol at IWSR Drinks Market Analysis, quoted in a February 2024 Fortune article, these consumers have a "curiosity about other products on the market….stigma and embarrassment around how much older generations drink."  Furthermore, "older people tend to look for like-for-like replacements between products with alcohol and without, younger people are more likely to experiment with things like adaptogen drinks, which claim to offer mood-boosting qualities."

Still, other data indicated that in 2023, 52% of consumers aged 18 to 34 felt that "drinking in moderation is bad for your health," an increase from 34% reported in 2018 for this age group.   Fifteen percent of this age group indicated that alcohol was "not too harmful/not at all harmful" to those who consume it.  When asked about marijuana consumption, 52% of participants aged 18 to 34 years responded that marijuana was "not too harmful/not at all harmful."  

So, What Influences This Generation? 

While not restricted to alcoholic beverages, Gen Z consumers are influenced by "recommendations…preference for unique labels and packaging and wish to impress others with their choices."  Along with visual characteristics and presentation, "who" is promoting the product is vital as "58% [of Gen Z say] that they are likely to be influenced into purchasing food or drink if it has been endorsed by a well-known person."

Compared to some more mature generations, Gen Z consumers are more likely to seek out experiences and spend money on them than purchasing consumable goods.  When building an experience, adapt insights included in a Beverage Dynamics article: 

• "A wide range of wine varieties to create excitement amongst drinkers."
• "Pair food with wines and highlight the wine’s origins."
• "Art or music or having an education session that includes the winemakers."

Premiumization

While trends generally indicate an increased interest and purchasing of premium-priced alcoholic beverages, there is evidence that younger consumers are particularly interested in trading up.

• "54 percent of 18- to 34-year-olds are likely to choose a premium drink versus just 35 percent of those over"
• 2023 Bacardi survey: 41% of U.S. participants "aged 21–44 [are] looking to seek more premium spirits" in 2024.
• "New demographics of consumers, especially those coming into legal drinking age, are drinking less but better,"

For the wine industry, premiumization growth in wine occurs "particularly in the space between $15 and $24.99, which is the only segment of the wine market that is growing."

Regarding spirits, the dollar share of premium and above spirits increased for the 52 weeks ending October 7, 2023, compared to the previous year.  Specifically:

• Ultra-premium-priced spirits grew by 6.7%
• Super premium by 22.8%
• Premium by 35.2%
• Mid and value-price spirits decreased by 20.6 and 1,4.6% respectively.

Specific to tequila, "premiumization in the $30-$40 range remains extremely strong, as consumers that had been drinking tequila priced below $20 trade up into this, and some consumers trade down from the $40 and above tequila space."  This has "been driven by a change in tequila's reputation...[from] a party drink" to a "premium sipping beverage," its use in cocktails, and consumer "demand for premium brands" that offer "unique flavors."

Premium-and-above beer in 2018 "accounted for less than 30% of U.S. beer volumes; in 2022, that figure rose to 35%."  What’s more, "premium-and-above flavoured beers (excluding radlers [two parts beer mixed with 1 part lemonade or lemon-lime soda]) are forecast to grow at a CAGR of +6% between 2022 and 2027, and premium-and-above lagers are expected to grow at a CAGR of +4% over the same timescale."

Premium-priced RTDs also garner attention, especially for spirit-based hard seltzers "which use named spirits…and premium ingredients."  There has been an introduction of USDA-certified organic RTDs, others made with all-natural ingredients and world-class spirits, and "enhancing products with functional ingredients."

Sustainability

According to a 2022 report published by Audience Collective U.S., when purchasing an alcoholic drink, 58% of consumers "think it's important that a brand is sustainable or eco-friendly."  When segmented based on generation, 47% of Gen X consumers agreed with the statement, while the percentage increased to 75% for Millennials.  When asked if "they would be highly likely to switch to a more sustainable brand" if their favorite alcohol brand "was not using sustainable practices," 34% of Gen X, 50% of Millennials, and 32% of Gen Z responded that they would do so. More recent data indicates that "63% of drinkers are concerned and active about sustainability/ sustainable products."

A number of research studies have investigated and determined that container materials, container size, etc., influence purchasing decisions.  In spring 2023, a survey was conducted with 692 U.S. wine consumers to better understand what containers they "believe are the most environmentally friendly."  Of the choices presented, the container options that "reduce harm to the environment and are most easy to recycle" are boxes, Tetra, plastic, and cans.  As with some past consumer research, different container sizes and types convey various signals to consumers. Some perceptions associated with some of the available wine containers used are:

• Regular-weight glass bottle - Suggests higher quality
• Light-weight glass bottle -"Fashionable"
• Plastic bottle - "Average quality at an average price"
• Bag-in-box, Tetra, cans - Lower quality and cheap wines

While, in general, the alcoholic beverage industry is energy-intensive, requiring significant amounts of inputs, specific segments and manufacturers are focusing on becoming more sustainable.  In particular, tequila brands "have developed a state-of-the-art water treatment system to reclaim clean water from our tequila production," "prioritizes fair trade, ensuring that agave farmers are paid a reasonable price for their crops," and grow agave "without pesticides or synthetic fertilizers, and they use traditional production methods to create their tequila."

Bartends and mixologists are also interested in reducing waste and using the entire citrus fruit when making cocktails. Aside from the juice, suggestions for the remaining fruit include:

• Zest (used as a garnish and for infusions)
• Pulp (used in cordials)
• Husk (made into a powder for garnish and mixed with simple syrup)

Flavors

As with general food trends, interest in sweet heat or "swicy" (spicy + sweet) beverages with flavors that include mango habanero, chili lime, and pineapple jalapeno has increased.  This is one of the trends, according to NielsenIQ, that will increasingly become important in the beverage space.  Other flavors of note include:

• Hispanic-influenced flavors (smoky mezcal, tamarind, tropical fruits)
• Indulgent flavors (chocolate, caramel, toasted coconut)

Other flavor trends include coffee. According to one source, in 2023, "coffee as an ingredient appear[ed] in some way in at least 46 cocktails at 26 of North America's top 50 bars." The source indicated that less than half of these cocktails were Espresso Martinis; of these, only three were the "standard" shaken recipe of vodka, coffee liqueur, and espresso."  As bartenders and mixologists become more inventive with using coffee, expect unique and creative offerings.  Brad Nichols, Flavorman’s director of Business Development, indicated that "coffee will also continue to expand flavorings and follow-suit of its symbiotic pollinating friends, via botanical and herbal roots."

Other indications of changing tastes include the Caprese Martini, named the 2024 Drink of the Year, and a mention of cocktails with ingredients such as beef tallow, chicken bouillon, and monosodium glutamate to "add an umami taste."  On the other end of the spectrum, floral and fruit flavors such as elderflower, lavender, hibiscus, yuzy, and tamarind are increasingly listed as ingredients for cocktails made with sparkling wine, tequila, and whiskey. 

Also, expect more cocktails and beverages made with natural ingredients, as "43% of younger respondents in the U.S. intend to consume more cocktails made with natural ingredients in 2024."  This, along with "sustainably sourced" aromatics, florals, botanicals and oils…create cocktail experiences uniquely rooted in nature” with become more evident as well as "an infusion of more aromatic and botanical oils for that "better for the environment, better for you" feeling."

White Spirits

In 2023, vodka accounted for 27% of total spirits volume, and flavored vodkas accounted for 21% of all vodkas sold.  One source indicates that flavored vodkas "are trending" due to the variety of flavors available (e.g., traditional fruit flavors to bacon, jalapeño, and wasabi flavors), and "high-quality" vodkas use "natural ingredients," with premium brands using "only the finest fruits, herbs, and spices to create their signature profiles." 

For cocktails made with tequila, 39% of the 3,110 alcohol consumers aged 21 and older prefer sweet, and 23% prefer spicy concoctions. 

Across the more popular white spirits, flavored options tend to be of greater interest to younger consumers. Of 810 internet users aged 22 and older who drink white spirits (Kantar Profiles/Mintel, August 2023):

• 56% of participants aged 22-34 responded that they drank flavored vodka, 49% drank flavored tequila, and 42% drank flavored rum.   
• While percentages were similar for the percent of participants aged 35–44 who drank flavored vodka and rum, only a third drank flavored tequila. 
• Forty-two percent of participants aged 45–54 drank flavored vodka, but only a third or less drank flavored tequila and rum.  Lastly, for age 55 and older, 21% drank flavored vodka, 8% drank flavored tequila, and 15% drank flavored rum.   

Whiskey

Since 2003, mezcal and tequila "volumes have grown 273 percent – an average rate of 7.2 percent per year."  Another source indicates that mezcal volume and value will increase at an 18% compound annual growth rate between 2022 and 2026, while tequila will experience an 8% increase in volume and 11% in value during the same period. 

According to SevenFiftyDaily’s State of Whiskey report, 39% of whiskey drinkers are "between the ages of 21 and 35, and only 17 percent [are] over the age of 55."  While unflavored whiskeys grew by 3% between 2017 and 2022, flavored whiskeys increased by 11% during that period.  More recently, for the 52 weeks ending September 2023, flavored whiskey sales grew by 1.9%.  One factor contributing to an increased interest in flavored whiskeys has to do with, "in general" they are "going to skew a bit younger," with some brands noticing an increase in consumers from aged 21 to their mid-30s being "drawn" to the product compared to more mature consumers.

Other trends include using alternative barrels, such as cherry wood and acacia, to age whiskey and cask crossbreeding, which is the process of "blending whiskey from different cask types…[such as] bourbon barrels with…sherry or wine casks."

Additionally, expect to see whiskey from Japan, Korea, Taiwan, and other up-and-coming producing countries such as Italy, Wales, Netherlands, and Singapore enter or become more prominent in the U.S. market.  Some brands are targeting the U.S. market with unique products.  In particular, Kavalan Distillery in Taiwan is creating a whiskey "specifically formulated for the U.S. market, Distillery Select was designed [for use in cocktails]…. Instead of [using cask originally filled] with the port, sherry, bourbon, or rum…Distillery Select only saw the insides of second- or third-use barrels resulting in a smoother, more delicate, and unadulterated taste."

Wine

According to Sevenfifty.com, it is expected that co-fermentation will become "increasingly common" in 2024.  Instead of blending wines post-fermentation, "different grape varieties have to be fermented together at the same time.  This leads to drastically different results than your regular, everyday blend."  In addition to co-fermenting grapes, producers also co-ferment grapes with other fruits. 

Due to interest among females and Gen Z consumers, wine preferences are expected to shift from red to white.  Additionally, Gen Z consumers "show a preference for sparkling wine and those with fruity/sweeter flavor profiles."  The change in consumption, in part, is due to perception shifting from sparkling wines being reserved for "formal events and special occasions" to becoming a "relaxing drink [consumed] at the end of the day" and "with an informal meal at home." IWSR also provides consumption data:

In 2023:

• "Roughly one-quarter of all adults are now sparkling wine consumers."
• "Almost two in five (38%) now consume sparkling wine on a weekly basis," compared to 22% in 2019.
• "Three in 10 sparkling wine consumers [in 2023] consider it suitable for a relaxing drink at the end of the day at home, up from 23% in 2019."

Other reasons for an increased interest in sparkling wine include an "International palate shift toward higher acid, lower alcohol wines," the beverages used in "cocktails and lower-ABV libations such as spritzes," and "diversity of the category…with force-carbonated and ancient method/pét-nat wines offering a wide range of flavor profiles and carbonation levels alongside traditional method and tank method styles."

Beer

In one of their category-specific flavor reports, T.Hasegawa indicated that "[f]lavor not only tops the selection factors, more flavored options would inspire increased consumption. Beer drinkers aged 22–34 were twice as likely to say more flavors would lead to increased engagement."  "Emerging" beer flavors include:

• Caramel
• Lemonade
• Graham
• Key Lime
• Hazelnut
• Plum
• Blue Raspberry
• Cream
• Nut
• Coffee (Mocha)

Ready-to-Drink

Based on several reports, including data published by Circana, "ready-to-drink/hard seltzer sales growth may be softening but remains a strong contender."  The report indicates that though sales of RTDs "more than tripled since 2018" when sales were $3.3 billion, sales have been more modest from 2021 to 2022, an increase from $9.3 billion to $9.7 billion, and for 2022 to 2023, with sales reaching $10.3 billion.  

According to IWSR, when asked to select all the factors that influenced the RTD they chose:

• 53% of consumers select an RTD based on flavor,
• 36% based on the alcohol base,
• 35% type of cocktail/long drink
• 31% the ABV
• 27% the brand is well-known.

The "top" RTD flavors, according to Circana, are: Variety pack, iced tea, black cherry, lemonade, margarita, and mango.

Another source, T.Hasegawa, indicates, "Consumers are looking for limited-time flavors such as holiday and seasonal, nostalgic, and internationally inspired ones. Margarita, piña colada, and gin & tonic flavors dominate RTD launch activity, while mango, lime, and watermelon flavors lead the fruit, citrus, and berry fruit flavor subcategories."

Synergy Flavours has launched a "natural whiskey flavor range" for alcoholic and no/low alcohol RTDs. Flavors include: "Bourbon, Tennessee, fruity and peaty whiskey flavors, as well as a traditional 'old-fashioned' cocktail flavor."

So, what is expected for the future growth of RTD products?  Is the RTD market maturing?  According to IWSR, the number of new RTD products peaked in 2021 at approximately 3,000.  During the "first half of 2023, that slowed to just 1,000." Other data that the source released includes projections for 2022 through 2027.  During those five years, the volume of these products is projected to increase at a compound annual growth rate (CAGR) of 1%, while RTDs share of the total beverage market will increase from 2.7% in 2018 to 7.9% in 2027.  While more, 45%, of RTD drinkers consumed these beverages weekly in 2023, compared to 38% in 2022, there has been a "decline in the number of new entrants" to the RTD market. 

As malt-based seltzer sales decline, spirits-based seltzers, RTD cocktails, and flavored malt beverages are expected to increase, and "rising RTD cocktail consumption is likely to take quite a bit of share from spirits."  According to Andrew Esstman, Director of RTD strategy for Beam Suntory, RTDs differ from a spirit offering, as "they are products that people are buying every day so you really have to be agile."

What might be next for spirit RTDs? Growth will likely be driven by:

• "Favor quality, variety, and demographic shifts"
• "Capturing current and hot trends (like espresso martini)."

No and Low-Alcoholic Beverages

The no and low-alcoholic beverage categories continue to grow in terms of sales and consumer interest. Though growth has slowed "after a peak in 2020 to 2021…the category is poised for robust gains in the coming years, spearheaded by no-alcohol and persistently strong recruitment levels." The CAGR for no and low-alcoholic beverages from 2019 to 2023 was 25%.  The forecasted CAGR for 2023 to 2027 is 15%. 

For wine products, the growth of low-alcohol wine has been due to "better-for-you wine attributes, such as fewer calories, reduced carbs, lower alcohol content, and, in many cases, zero residual sugar."  While no-alcohol wine consumption is growing, these beverages are "struggling to attract consumers due to negative perceptions around quality and taste."  Due to "lower levels of availability in some markets… some consumers [choose] to migrate into other no/low categories, such as beer and RTDs."

Who is the primary consumer of no and low-alcoholic beverages?  According to IWSR, Millennials account for 43% of those who consume these products. 

Non-alcoholic Beverages

For non-alcoholic beverages, sales for the 52 weeks ending October 7, 2023, compared to the year before, increased by 32%, while total alcoholic beverage sales for the same period only increased by 1%. Pertaining to share, non-alcoholic beverages accounted for 70%, and low-alcohol accounted for 30% of the combined category. 

Compared to wine and spirits, non-alcoholic beer "dominates" the no-alcohol category.  Of the non-alcoholic beer available, non-alcoholic craft claims 28% of the share, and non-alcoholic domestic premium has a 16% share.

While beer may currently dominate, sales growth for the 52 weeks ending April 8, 2023, off-premise sales of non-alcoholic beverages were as follows:

• Non-alcoholic spirits: +88%
• Non-alcoholic beer: +26%
• Non-alcoholic wine: +19%

Data indicate that consumers who purchase non-alcoholic products are also purchasing beverages with alcohol, and the percentage is increasing. In 2022, "82% of non-alcoholic drink buyers are also still purchasing drinks that contain alcohol."  In 2023, 94% "of those who are buying non-alcoholic products continue to buy…products with alcohol."

What do non-alcoholic beverages provide consumers?

• 57% of survey respondents indicated that they "feel more confident in social situations where they did't want to drink alcohol."
• 67%, "Help them prioritize their physical health while not missing out on social opportunities."
• 74%, It is "easier for everyone to enjoy social occasions together"

Mocktails

Gen Z consumers aged 18 to 24 are more likely to have made or purchased a mocktail, 33% of those surveyed, than other age groups and more likely to buy a mocktail at a restaurant than older generations. 

Reasons for selecting non-alcoholic drinks when out include:

• "To be healthier," 41%
• Save money, 35%
• "Try something new," 31% 

Results from a November 2022 survey of 418 U.S. adults aged 21 and older (69% who consumed alcohol and 31% who did not consume alcohol, revealed "what" consumers miss most when drinking non-alcoholic cocktails? (November 2022):

• 43%, Mood-enhancing effects
• 39%, The flavor
• 30%, Variety of choices
• 28%, Enhanced sociability

Dry January

Since 2020, the percentage of U.S. adults aged 21 and older who participated in Dry January has increased, with expectations that participation will grow.  In December 2023, it was anticipated that 27% of adults aged 21 and older who drank alcohol would be "very likely" to participate in Dry January 2024, and an additional 18% were "somewhat likely” to do so.  Of those intending to do so, 46% "rarely drink," and 41% "drink between one to five alcoholic beverages weekly."

When Civic Science released data that reported who participated in Dry January 2024, 25% of adults surveyed indicated that they had "avoided alcohol during the month of January," with 35% of those aged 21 to 24 years indicating that they participated, followed by 31% of both 25 to 34 and 35- to 54-year-olds, and 14% of respondents aged 55 and older.  Whether these survey participants will continue to refrain from alcohol "moving forward":

• 28% of Dry January participants, aged 21 and older, "plan to return to [their] normal drinking habits,"
• 37% "plan to drink less, but not eliminate alcohol completely," and
• 25% "plan to stop drinking alcohol altogether"