If last week’s Gallup survey suggesting Americans are drinking less has you ready to hit the panic button, maybe back away.
Although there are declines in consumers’ expressed drinking behaviors, market research firm NIQ notes several opportunity areas for suppliers, retailers and on-premise operators.
“The latest consumption numbers may carry shock value at first pass, but if you look behind the headline, the drinker that is forgoing alcohol was already engaging with the on-premise infrequently,” Drew Hummel, CGA director of the bev-alc vertical, said in a recent thought leadership piece. “All three tiers can lean into what’s working: premium out-of-home experiences that guests are willing to trade up for, as well as non-alcohol (NA) options for inclusivity.”
Kaleigh Theriault, NIQ director of bev-alc thought leadership, added that the survey’s results are “a reminder to focus on what we can control.”
“What once felt like a slow, steady moderation trend has quickly become uncharted territory for suppliers and retailers,” she wrote. “But even as fewer consumers report drinking alcohol, off-premise remains an opportunity. Many households still purchase for gifting, entertaining, and that special treat occasion, often led by a primary shopper who may not be the drinker.
“This is our opportunity to meet shoppers and consumers where they are, offer inclusive alternatives, and make the aisle an enjoyable experience for drinkers and non-drinkers,”
The 2025 Gallup survey found that 54% of U.S. consumers reported having an occasion to drink alcoholic beverages – the lowest number in the poll’s near 90-year history and a third consecutive year of decline. Gallup attributed the decline to “a growing belief among Americans that moderate alcohol consumption is bad for one’s health, now the majority view for the first time.”
However, other factors may be at play, from a small sample size (just over 1,000 respondents) to the inclusion of consumers under the legal drinking age, as Brewers Association president and CEO Bart Watson noted in a LinkedIn post.
There is also a gulf between stated and real preference.
NIQ offered several insights into U.S. consumers’ bev-alc purchasing patterings, including:
- 111 million households purchase alcoholic beverages at off-premise retailers;
- 86% of U.S. households purchase bev-alc products;
- And the average bev-alc buying household spends more than $500 annually on alcohol, with more than 22 shopping occasions throughout the year.
Notably, NIQ shared that the primary shopper for those households may not be the drinker. As such, suppliers should ensure that packaging is inclusive of those consumers.
Meanwhile, shelf space for adult non-alcoholic (ANA) beverages across beer, wine and spirits is increasing, NIQ wrote. That’s helping drive 22% dollar sales growth for ANA products compared to last year. The vast majority of those ANA buyers (more than 92%) are also buying alcoholic beverages, meaning these products are creating additional occasions, including in bars and restaurants where those drinks are becoming important menu items.
Focusing on the on-premise channel, 28% of U.S. consumers go out for a drink at least once a week. That number increases to 45% for the key 21- to 34-year-old demographic.
Spending on food and drink increased around 40% compared to a year ago, CGA reported.
Premiumization remains a key factor in the on-premise, as “consumers associate value with quality in combination with price,” NIQ shared.
“Consumer preference favors ‘less, but better,’ with 67% preferring one to two high quality drinks over five value drinks,” the firm wrote.
Those drinkers are also seeking experiences away from home, with “experiential bars, stadiums and festivals” cited as attractive destinations. Drink-led occasions in the on-premise are being driven by social occasions such as catching up with friends and celebrations.
“Even in a shifting landscape, strategic pricing to drive value and bartender advocacy to recruit incremental brand and category loyalists are key to focus on to find growth,” Hummel said.