How Much Does the Average American Spend on Alcohol?

How much does the average American spend on alcohol? This question offers insights into household budgets and economic trends. Understanding these patterns provides a clearer picture of how a portion of discretionary income is allocated. This article explores overall spending, purchase categories, influencing factors, and data collection methods.

Overall Alcohol Spending Figures

In 2023, the average American household allocated approximately $637 annually to alcoholic beverages. This figure represents an overall average, combining both on-premise and off-premise consumption. When considering spending per individual, estimates suggest an annual per capita expenditure of around $1,007.6 in 2025.

While the total retail spending on alcoholic beverages in the United States reached $89.8 billion in 2023, representing a modest 1.1% increase over 2022, the volume of alcohol consumed has seen a decline. For instance, the total beverage alcohol volume declined by 2.6% in 2023 and an anticipated 3% in 2024.

Spending Variations by Category

Household spending on alcoholic beverages varies significantly depending on the consumption venue. In 2023, American households spent an average of $294 on alcoholic beverages consumed at home (off-premise) and $343 on alcoholic beverages consumed away from home (on-premise). This indicates that on-premise consumption accounts for a larger portion of household alcohol expenditure.

Regarding types of alcohol, the market has experienced shifts in recent years. While beer and wine have generally seen declines in volume, spirits have demonstrated positive growth in value, primarily driven by ready-to-drink (RTD) beverages. For instance, total spirits revenue fell 1.1% in 2024 to $37.2 billion, while volumes rose slightly by 1.1%. Wine was a particularly challenged category in 2024, with sales declining 3.5% in value and 5.3% in volume.

Factors Influencing Alcohol Expenditures

Several demographic and behavioral factors contribute to the diverse spending patterns on alcohol. Age plays a significant role, with younger demographics often exhibiting different consumption habits than older groups. Younger adults between 21 and 34 years old indicate a higher propensity to increase their spending in on-premise venues. This contrasts with a broader trend of declining alcohol consumption rates among young adults over the past two decades.

Income levels also influence alcohol expenditures, with higher-income consumers potentially less affected by economic pressures and more inclined towards premium products. Regional differences are also observable, with certain states showing variations in consumption trends, often linked to local economic conditions and preferences. The frequency and quantity of consumption directly impact individual spending totals, as does a growing trend towards moderation in alcohol consumption.

Data Collection and Context

The primary source for consumer spending data, including alcohol expenditures, is the Consumer Expenditure Survey (CE) conducted by the U.S. Bureau of Labor Statistics (BLS). This program consists of two main components: the Interview Survey, which captures large or recurring purchases, and the Diary Survey, which focuses on smaller, more frequently purchased items.

Data collection for the CE program is carried out by the U.S. Census Bureau on behalf of the BLS. This dual-survey approach allows for a complete picture of consumer unit expenditures, income, and demographic characteristics. When viewed within the broader context of household budgets, alcohol spending, while notable, is a relatively smaller category compared to major expenses such as housing, transportation, and food. For instance, in 2023, housing accounted for 32.9% of total household spending, transportation for 16.8%, and food for 12.9%, whereas alcohol represented a much smaller percentage.