America’s drinks bill is losing its place in the household budget

The drinks business has an awkward number to absorb. Alcohol accounted for just 0.77 per cent of average US household spending in 2025, a record low in the figures reported by VinePair from the Bureau of Labor Statistics’ Consumer Expenditure Survey.

The average household spent $630 on alcohol, down from $643 a year earlier. That is a decline of roughly 2 per cent in dollars. It is not evidence that the average American drank 2 per cent less: spending reflects prices, purchasing choices and the composition of households as well as the amount consumed.

The share is the sharper signal. A category can lose ground because people buy less of it, because they choose less expensive products or because other bills take more of the budget. The reported figures alone cannot separate those explanations.

Nor should a household average be confused with the typical drinker’s bill. It includes households that buy little or no alcohol. A good bar can still be busy while a national spending category weakens.

For producers and operators, the distinction does not make the pressure disappear. It makes the response more demanding. Another premium bottle is not automatically an answer when the category itself is competing for a smaller place in the family budget. The industry needs to earn the occasion, not merely raise the price of it.

Source: VinePair