Alcohol consumption is declining in America. Its biggest impact is on the restaurant business. According to a 2025 Gallup poll, the share of alcohol drinkers in America is at a low level. Only 54% people said that they drink alcohol. Even those who drink are drinking less than before. The biggest reason for this is believed to be the impact on health and increase in the prices of liquor. 31% of US operators predict a serious decline in alcohol sales by 2025. Damon Wise, who runs a restaurant in Montclair, New Jersey, said that earlier his earning formula was 40% food and 60% alcohol. First it was 50-50. Then 70% of the income started coming from food and only 30% from alcohol. Millennials reduce alcohol consumption, Gen-Z turns away According to Technomic’s 2026 report, Millennials (31-45 years), who were the biggest lovers of alcohol, are now staying away from it. At the same time, Gen-Z youth are not able to fill that void. They are often limited to just one drink and a photo at the restaurant. According to experts, the new generation does not want to spend money on alcohol due to inflation or alternatives like cannabis. Health, habits and GLP-1 drugs are also a big reason. In January 2025, US Surgeon General Vivek Murthy’s report also linked light or moderate alcohol consumption to cancer risk. Apart from this, increasing awareness about health, changing habits of generations and use of GLP-1 medicines by about 6% of Americans are also considered to be the reasons. These medicines have shown signs of reducing the desire for alcohol. Expensive liquor and unemployment have broken the backs of youth. According to Los Angeles businessman Dustin Lancaster, rising costs are driving youth away from alcohol. Earlier whiskey and beer were available for 8 dollars i.e. around Rs 730, the price of which has now reached 20 dollars i.e. Rs 1,800. According to Technomic report, due to 9.2% unemployment rate, the pressure on the pockets of Gen-G has also increased.
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Liquor consumption declined in America, big blow to earnings: Survey 31% operators said decline in liquor sales
