Right now, many people are cutting back during ‘Dry January’, a trend that has gained traction in recent years. The US is also seeing a broader shift toward reduced alcohol consumption.
The volume of alcohol consumed in the US fell by 8% from 31 billion liters in 2021 to 28.4 billion liters in 2025, according to the market research company Euromonitor.
The So What
“Alcohol companies are closely watching these shifts, trying to understand what is driving them and how to respond,” says Chris Goodchild, a BCG managing director and senior partner in the US who leads BCG’s beverage alcohol sector.
“Cyclical factors such as inflation clearly matter, but longer-term changes in how people socialize—and how much they prioritize health and wellness—cannot be ignored."
BCG surveys of alcohol drinkers in the US conducted in October and November 2025 shed more light on these two key trends: a focus on wellness and health, and changing social habits.
When it comes to wellness:
- 55% of respondents said they had seen or heard health warnings about alcohol in the past year.
- Health and wellness is the most important reason given by US adults who said they were drinking less alcohol than a year ago.
When it comes to socializing, there has been a continued shift away from large, high-energy social events such as parties and clubs toward smaller, more relaxed gatherings, which often take place at home. This is especially true of younger generations, which are more likely to enjoy digital-first leisure activities such as gaming or online dating apps.
- 63% of people surveyed at the end of 2025 said they drank at home, up from 54% in the 2015 survey.
- 16% of people said they drank in bars or restaurants, down from 27% in the 2015 survey.
- 21% said they drank while doing activities out of the home, such as sport, travel, or attending a concert. This is up from 6% in the 2015 survey.
“While alcohol firms are undeniably facing challenges, there are also many opportunities for innovation, both when it comes to new products and the way products are marketed,” says Nicol Zhou, a BCG managing director and partner who focuses on growth-oriented transformation in the consumer sector.
Stay ahead with BCG insights on the consumer products industry
“Alcohol companies need to deeply understand where the customer is going, especially younger generations. While older generations still account for most of the spend on alcohol, the preferences of Gen Z will become increasingly critical as time goes on.” Some of these opportunities include:
- The growth of no-or low-alcohol wine, beer or spirits. These have seen CAGR of 7% between 2015 and 2025.
- Pre-mixed cocktails or punches. While growth is now slowing, the ready-to-drink sector is the only category that has not experienced a decline in volume sales over recent years.
- Innovative alcoholic products, for example with new colors or flavor combinations. 17% of people who are increasing their alcohol consumption cite “new, exciting alcoholic products,” as a top reason.
“Alcohol has long been part of social gatherings in the US. As customer behaviors have shifted, both the role and the place of alcohol have evolved, along with the consumer journey and the type of alcohol being consumed on different occasions,” says Clément Richet, BCG’s director of insights for alcoholic beverages.
Now What
Beverage alcohol firms can adjust their playbook to respond to changing habits in the US:
Re-evaluate portfolios to optimize opportunities. This could include the prioritization of drinks that are most likely to appeal at gatherings in the home. Younger customers also increasingly see their choice of alcohol as a form of self-expression and want personal relevance and brands that reflect their lifestyle and values. They are also more category agnostic, raising the bar for innovation and portfolio strategy. This may also mean re-setting product-specific growth strategies or seeking out M&A opportunities.
Reimagine marketing approaches. Many brands were created around on-premise drinking occasions. With shifting consumption patterns, building engagement requires a more expansive playbook. Brands should seek out more consumer touchpoints and strengthen digital engagement, while increasing authentic brand positioning and storytelling with an emphasis on personalization. The alcohol industry as a whole has been less active on emerging media channels and slower to adapt to the realities of how technology is changing shopping dynamics.
Maximize pricing and promotional opportunities. These levers are all the more essential given that growth is harder to come by and customers are still concerned about value in the short term. More broadly, however, there may be opportunities to re-allocate spending in meaningful ways to support innovation, while the changes in where and when people are drinking may also require a re-set of promotional activity (including pricing and pack size) to better reflect changing customer behavior.
