Americans are still drinking, but they are doing it differently. Across the U.S., people are reaching for less expensive beer and wine more often, and many are either cutting back on alcohol altogether or treating it as an occasional purchase instead of a routine habit. This shift is not just about a few frugal households, it shows up in national sales data and in the way big beverage companies talk about the future. The story is no longer about which brand is the trendiest, it is about price tags, budgets, and how much value someone feels they are getting from each drink.
Revenue from Constellation Brands (NYSE: STZ), a U.S. beverage alcohol company that imports Corona and Modelo among other brands, reflects this mood. In its latest full-year results, the company reported that beer sales were down about 3%, while wine and spirits revenue fell sharply, by around 51% after divestitures. The company also pulled back on earlier guidance, signaling that management expects consumers to remain cautious about what they spend on alcohol in the year ahead. This is consistent with broader industry data that show U.S. beverage alcohol volumes slipping by about 5% in 2025, with beer down 5%, wine down 6%, and spirits down 4%.
At the same time, consumers are becoming more deliberate about where they spend every dollar. A recent survey from research firm NCSolutions found that nearly half of Americans say they intend to drink less in 2025, up from about 41% the year before. This trend is even stronger among younger adults, with well over half of Gen Z saying they plan to cut back, and many considering a completely dry year. The idea of “moderation” is no longer just a buzzword, it is turning into a default mindset for a large share of drinkers. When combined with steady inflation in everyday goods, including housing and groceries, alcohol becomes an easy category to scale back.
Cost is now one of the main reasons Americans say they are drinking less. Industry research from IWSR’s Bevtrac consumer work shows that around 31% of U.S. drinkers cite cost as the primary reason for moderating their alcohol use. Instead of blindly trading down to the cheapest option, many people are hunting for a better price-to-quality balance, paying more only when they feel a brand clearly justifies the premium. This behavior helps explain why the super-premium segment is one of the few parts of the market that has held up, with volume in that tier actually rising slightly in 2025 even as the overall market shrinks.
Beer prices themselves have climbed sharply over the past decade. The average price of a 12-pack has risen by roughly 41% since 2015, and even budget staples like Pabst Blue Ribbon and Miller High Life have seen prices jump by more than 40% over that period. When the same brands people once treated as “cheap” now carry noticeably higher tags, it changes the psychology of the purchase. Many consumers respond by choosing smaller packs, cheaper brands, or skipping the beer run entirely. In other words, the inflation that hit grocery bills and electric bills also quietly reshaped the six-pack aisle.
Wine is facing a similar squeeze, but with an added layer of structural change. The average price of a U.S. bottle of wine shot up about 11% in 2025, the largest jump since the early pandemic years. That increase is colliding with a sharp drop in volume for lower-priced wines, particularly those under about $15. Shipments of sub-20-dollar bottles have fallen in many channels, even as the share of higher-priced wines continues to grow. The result is a market where the affordable entry point into wine is shrinking, and many casual drinkers either switch to other categories or drink less often.
If anything, the U.S. beer and wine industry in the next 1–2 years looks less like a straight-line recovery and more like a period of adjustment. Forecasts from IWSR and other market analysts suggest that beverage alcohol volumes will remain under pressure, as economic conditions and shifting consumer habits keep people focused on value, convenience, and moderation. Ready-to-drink cocktails and no-alcohol options are emerging as the areas where growth is more likely, because they hit the sweet spot between lower-cost experimentation and a way to socialize without spending as much or feeling the same level of health risk.
What this all adds up to is a quiet but meaningful rewiring of American drinking culture. People are not abandoning beer and wine, but they are approaching them more like calculated treats than automatic purchases. For the companies that sell these products, the challenge is no longer simply about marketing or innovation, it is about understanding how small changes in price, perception, and health awareness can quickly reshape what people reach for in the aisle or order at the bar.
