Bar Alcohol Sales in the U.S. Rise 4% as Americans Return to Social Drinking

Alcohol sales at bars in the United States have risen steadily since January 2025, according to a new report from Bank of America. The bank’s analysis of credit and debit card spending shows that on-premise alcohol purchases—drinks bought and consumed at bars—have increased by 4% year over year. This growth follows a period of decline in 2024, when bar sales dropped amid changing consumer habits and economic uncertainty.

The report highlights a clear shift in where Americans are choosing to drink. While bar sales are climbing, retail alcohol purchases for at-home consumption continue to fall. From January 2024 through early 2026, spending at liquor stores has dropped by about 5%. The most significant decrease occurred around the start of 2025, when retail alcohol expenditures fell by 10%. Despite the higher cost of drinks at bars compared to stores, consumers are showing a preference for social drinking experiences.

Bank of America’s data suggests that the increase in bar sales is not driven by price differences. On-premise drinks remain significantly more expensive than those purchased for home use. Instead, the report points to socialization and the desire for shared experiences as key factors behind the trend. As pandemic-era restrictions faded and people returned to public spaces, bars have regained their role as gathering spots.

The report also examines changes in drinking habits across age groups. Among adults aged 21 to 49, there has been a noticeable pullback in moderate to frequent drinking—defined as consuming four to five drinks in one occasion. Data from the US Substance Abuse and Mental Health Services Administration shows that between 2014 and 2024, the number of frequent drinkers aged 21 to 34 fell by about 4 million. In contrast, regular drinking among people aged 65 and older increased by 2.8 million during the same period.

Younger generations, particularly Gen Z and Millennials, are shifting their spending toward fitness and wellness activities. Bank of America’s card data reveals that year-over-year purchases related to gyms, country clubs, and golf grew by more than 8% among Gen Z cardholders and over 4% for Millennials heading into 2026. This trend suggests that younger consumers are prioritizing health and social experiences outside traditional drinking venues.

Industry experts have debated whether younger Americans are moving away from alcohol entirely or simply moderating their consumption. The Bank of America report indicates that while Gen Z and Millennials are not abstaining from alcohol altogether, they are drinking less frequently than previous generations. Their focus appears to be on balance—spending more on fitness while still participating in social drinking occasions.

The divergence between on-premise and retail alcohol sales reflects broader changes in American lifestyles since the pandemic. As people seek out experiences and connection, bars are benefiting from renewed interest in communal activities. At the same time, liquor stores face ongoing declines as at-home drinking loses ground to other forms of entertainment and wellness pursuits.