America’s Relationship with Alcohol Is Changing: What It Means for the Industry and Consumers

In recent years, a noticeable transformation has taken place in how Americans approach alcohol. More people than ever are choosing to moderate or even eliminate alcohol from their lives, prompting significant shifts in the beverage industry and influencing the broader economy. With nearly half of U.S. adults reporting efforts to cut back, the implications for consumers, producers, and investors are wide-reaching.

Why Are Americans Drinking Less?

The driving forces behind this moderation trend are multifaceted. Health is chief among them: concerns about the physical and mental effects of alcohol have risen dramatically. In 2025, a record number of Americans now believe that even moderate drinking is harmful to health. This perspective is especially pronounced among younger generations, with Generation Z in particular prioritizing wellness and sobriety as part of their lifestyle.

Financial considerations are another factor. As living costs soar, alcohol is increasingly viewed as a non-essential expense—one that is easy to trim from budgets without drastic lifestyle compromise. On top of that, the growing social embrace of sobriety, and the popularity of “sober-curious” lifestyles, have made cutting back not just acceptable but trendy.

The “Sober Curious” and Moderation Movements

Terms like “sober curious” and “Dry January” have entered the mainstream. In 2025, an astonishing 30% of Americans took part in Dry January—a leap of more than a third in just one year. But the shift isn’t limited to January. Nearly one in two U.S. adults claim they are trying to drink less, and almost two-thirds of Gen Z say reducing alcohol is a priority for them this year.

Crucially, the moderation trend is no longer viewed as a temporary experiment or the domain of a specific demographic. Consumers of all ages, regions, and backgrounds are reassessing their relationship with alcohol, increasingly normalizing moderation or abstinence as part of everyday life.

The Rise of No- and Low-Alcohol Alternatives

The industry’s response to this cultural evolution is reflected in the explosive growth of no- and low-alcohol drinks. Whether it’s craft non-alcoholic beers, de-alcoholized wines, or sophisticated distilled alternatives, options for those who wish to drink less (but still participate in social drinking) have never been so abundant or appealing.

Market forecasts support these changes. The no-alcohol category is projected to grow significantly over the next few years, with no- and low-alcohol alternatives forecast to generate over $4 billion in incremental growth by 2028. The trend is most visible in the largest markets, including the United States, where demand for alcohol-light and alcohol-free options is accelerating fast.

Premiumization—But With Changing Priorities

For those who still choose to imbibe, the picture is also evolving. A “less but better” mindset is taking hold, with many consumers choosing to drink less often but opting for higher-quality, premium beverages when they do. High-end tequilas and whiskeys, craft spirits, and specialty wines are gaining popularity, especially among younger drinkers who appreciate unique flavors, brand storytelling, and artisanal craftsmanship.

However, even premiumization is undergoing revision. The once-rapid growth in ultra-premium spirits has slowed, and consumers are shifting their focus to what’s considered “affordable luxury” rather than splurging on top-shelf bottles. Spirits in the $17 to $50 range are now more attractive, while high-end categories above $100 are experiencing marked declines in sales.

Impact on Industry Giants—and What Comes Next

For alcoholic beverage companies, these rapid consumer shifts pose real challenges and opportunities. Established brands are scrambling to diversify product lines, invest in non-alcoholic options, and reimagine marketing for a health- and wellness-conscious generation. Companies that fail to respond risk losing market share, while those that innovate stand to thrive in a reshaped landscape.

Retailers, too, are adapting: shelf space devoted to non-alcoholic and premium options is expanding, and new brands are emerging to serve the sober-curious market.

What Does This Mean for Investors and Consumers?

For investors, the changing alcohol landscape demands flexible thinking. Traditional strongholds—mass-market beer, mainstream spirits—may continue to contract while growth will likely be concentrated in niche categories and emerging brands focused on health, premium quality, or alcohol alternatives.

For the average consumer, it means more options, greater social acceptance of abstinence, and a marketplace geared towards individual choice and wellbeing.

America’s drinking habits are changing, and the economic, cultural, and personal impacts are profound. Whether you raise a glass—filled with whiskey, wine, or sparkling water—the era of drinking on autopilot is ending, ushering in a new chapter for consumers and the industry alike.