Younger adults are drinking less, and that change is starting to show up far beyond the cocktail glass. A 2025 Gallup poll found that 54% of Americans said they drink alcohol, the lowest level in 90 years, while drinking among adults under 35 fell to 50%, down from 62% in 2021 to 2023 and 72% in the early 2000s.
That shift matters because the old assumption in the spirits business was simple, younger consumers would eventually age into steady buyers. Instead, many are forming different habits from the start. Health concerns, higher prices, and a greater willingness to skip alcohol altogether have all contributed to the change, while some drinkers who still go out are choosing fewer occasions and smaller tabs.
The numbers also suggest the decline is not limited to one narrow age group. Gallup reported that adults age 35 to 54 cut drinking by 10 percentage points since 2023, while those 55 and older reduced consumption by 5 points over the same period. In other words, the pullback is broad enough to matter for the entire beverage market, not just the youngest legal drinkers.
For cognac, that changing mood has arrived at an awkward time. The category enjoyed a pandemic era lift when home drinking and premium purchases surged, but the market has since cooled as consumers return to more selective spending patterns. The result is a category that once benefited from prestige and celebration, but now has to compete in a market where even loyal buyers are being more careful.
The pressure is especially visible in export data. Global cognac shipments fell 15.1% to 141 million bottles in 2025, according to BNIC, the industry trade body, while ex cellars revenue dropped 25.3% to €2.24 billion, or about US$2.6 billion. In North America, which remains a crucial market, shipments fell 19.4% to 56.9 million bottles and value declined 34% to €737.3 million, or about US$803 million.
That is a sharp reversal for a category that had long leaned on a premium image. Cognac has often sold itself as a drink for special occasions, but special occasions are becoming less frequent, and when they do happen, many consumers are trading down or choosing a different spirit altogether. Tequila has been one of the clearest beneficiaries, especially among shoppers who still want something premium but less tied to tradition.
The broader spirits market shows the same pattern. In 2025, tequila and mezcal revenue fell 4.1% to $6.4 billion, but lower priced bottles gained volume, while ready to drink cocktails climbed more than 16% to $3.8 billion as consumers looked for convenience and value. That suggests the issue is not simply that people stopped buying alcohol. It is that they are buying differently, often with more attention to price, style, and how a drink fits into everyday life.
Cognac now faces a difficult question that extends beyond one region or one export cycle. If younger consumers are building drinking habits around moderation, health, and flexibility, then the category cannot rely on the old idea that age alone will bring them into the fold. The next phase for cognac may depend less on nostalgia and more on whether it can find a place in a market where indulgence has become more selective.
