Economy

2 charts show how spending on most kinds of alcohol has declined in recent decades — especially among young adults

Clinking cocktails
Alcohol consumption trends have been on the decline for years, even before the US Surgeon General said alcohol is a leading cause of cancer. semenovp/Getty Images
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By the time the US Surgeon General dropped its report linking alcohol to cancer on Friday, Americans had already been curbing their spending on booze over the last several decades — especially young people.

Surgeon General Vivek Murthy said in his latest advisory that alcohol consumption is the third leading preventable cause of cancer in the US, following tobacco usage and obesity. He recommended updating warnings on alcohol packages to raise awareness of the harmful effects of drinking. However, doing so requires an act of Congress.

"For individuals, be aware that cancer risk increases as you drink more alcohol," Murthy wrote in a post on X on Friday. "As you consider whether or how much to drink, keep in mind that less is better when it comes to cancer risk."

Do you plan to change your drinking habits in response to the Surgeon General's recommendation? Tell us why in this survey.

Many Americans have already been cutting back. Business Insider analyzed alcohol spending data from the Bureau of Economic Analysis and the Bureau of Labor Statistics to get a sense of how alcoholic beverage consumption has changed. It showed that spending has decreased over the past few decades, especially among Americans under 25.

With spirits and beer in particular, Bureau of Economic Analysis data shows that personal spending as a share of personal consumption expenditures has dropped since 1959. Spending on wine as a share of personal spending, meanwhile, has seen a small uptick.

Additionally, expenditure data adjusted to 2023 dollars using the consumer price index shows that younger adults under 25 years old spent less on average than this age group years prior. Bureau of Labor Statistics data shows that spending on alcoholic beverages by Americans under 25 is similar to people aged 75 and over.

The decrease in alcohol spending among young people is reflective of Gen Z and millennials' shifting habits and priorities compared to other generations. A Gallup survey from 2023 found that 62% of adults under 35 said they drink, compared to 72% two decades ago, with some of them citing health concerns as a key reason.

Gen Z is also favoring more active settings like fitness groups to socialize instead of drinking, marking a shift in younger Americans' behaviors.

It's unclear how the alcohol industry will respond to Murthy's latest report. However, warning labels on alcoholic drinks have not been updated since the '80s, and Murthy urged Congress to take action by updating labels and revising recommended consumption limits to prevent cancer among the US population.

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Madison Hoff
Madison Hoff is a reporter on Business Insider’s economy team. She covers the labor market, inflation, spending, and other data. In addition to covering new estimates and trends, her workforce reporting includes career pivots, job searching, and side hustles.She also covers downsizing, particularly people selling their houses to pursue RV living. She has also reported on how much teachers spend out of pocket and what it’s like being a caregiver.Her stories often cover the state of the economy, what experts are saying, and how people are navigating the workplace or their careers.Previously, she was a junior reporter and data editorial fellow on the Strategy team.
Ayelet Sheffey
Ayelet Sheffey
Ayelet Sheffey is a senior reporter at Business Insider covering education and student loans. She has appeared on shows including C-SPAN, CBS News, NPR, and SiriusXM to discuss her student-loan coverage, including her investigation on private student-loan lending.She graduated from American University in 2020 with a bachelor's degree in journalism. You can reach her via email at asheffey@bjinnox.com or message her securely on Signal at asheffey.97. You can also find her on LinkedIn, and on Reddit at the username u/higheredjourno.