Young Americans Drinking Less Alcohol Amid Health and Economic Concerns

Young Americans are increasingly turning away from alcohol, raising questions in the beverage industry about whether this trend is temporary or permanent. A Gallup survey highlighted that young adults in the U.S. are more aware of the health risks associated with alcohol, leading them to drink less. Bill Shufelt, CEO of Athletic Brewery, a nonalcoholic beer company, noted that perceptions of alcohol have shifted more than the industry realizes. He mentioned at a UBS conference in New York that half of Americans express a desire to reduce their alcohol consumption, a sentiment particularly strong among millennials and Gen Z. These younger generations are more informed about health issues and have more alcohol-free options available.

Surveys by IWSR, a global insights firm, found that half of millennials and 60% of Gen Z avoided alcohol for a week or more over six months in 2024. Shufelt believes these changes in perception are just beginning and have not yet fully impacted the industry. He also pointed out that economic pressures and rising alcohol prices might be influencing these trends. Despite this, Shufelt believes that traditional alcohol companies can still engage consumers, as alcohol has been a part of human culture for thousands of years.

Lawson Whiting, CEO of Brown-Forman, noted that alcohol spending has decreased among younger Americans, but he attributes this more to economic factors than health concerns. He explained that young adults, often fresh out of college, face financial constraints, leading them to buy less alcohol. Michel Doukeris, CEO of Anheuser-Busch InBev, suggested that the shift might be a temporary effect of the COVID-19 pandemic. He noted that the pandemic disrupted the lives of those who are now of legal drinking age. However, he expects behaviors to normalize as people reach their mid-20s.