Alcohol Consumption in 2025: How Health, Home, and Generational Shifts Are Reshaping Drinking Habits

Alcohol consumption in the United States continues to evolve, shaped by health concerns, economic pressure, and changing social norms. ThinkNow’s 2025 Alcohol Consumption Report, based on a nationally representative survey of U.S. adults age 21+, offers a clear picture of how, where, and why people are drinking today—and how those behaviors vary sharply by generation and cultural background.

Download the full report here.

Millennials Remain the Most Engaged Drinkers

Across generations, Millennials stand out as the most active alcohol consumers. They are the most likely to drink weekly or more often and show the highest participation across nearly every beverage category, including beer, wine, cocktails, hard liquor, and hard seltzers. Unlike older cohorts, Millennials’ drinking occasions span both everyday relaxation and special celebrations, reinforcing their role as the industry’s most versatile consumer segment.

Gen X follows closely behind in frequency, while Boomers show steadier, less variable habits. Gen Z, in contrast, is notably less likely to drink frequently and more likely to report cutting back altogether.

Drinking Has Shifted Home

Regardless of age or ethnicity, alcohol consumption is now primarily an at-home activity. Nearly three-quarters of drinkers say they most often consume alcohol at home, far exceeding restaurants, bars, or social gatherings. This shift reflects lasting changes from recent years, including cost control, convenience, and lifestyle reprioritization.

While Millennials remain the most likely to associate drinking with celebrations, Gen Z is the least likely to drink at home, suggesting a looser attachment to alcohol as a routine behavior rather than a default social accompaniment.

More Consumers Are Drinking Less Than More

A critical takeaway from the report is that moderation is rising. More adults report decreasing their alcohol consumption over the past year than increasing it. Health and financial considerations dominate the reasons for cutting back, with improvements in physical health and saving money cited most often.

These motivations vary by age. Younger adults, especially Gen Z, are more likely to consciously reduce consumption, while Boomers largely report no change, indicating that habits stabilize with age.

Among Millennials specifically, avoiding hangovers is a disproportionately strong driver of reduced drinking, highlighting growing awareness of alcohol’s short-term physical costs even among heavy participants.

Stress Still Drives Increases

For those who are drinking more, stress is the dominant factor. Roughly half of adults who increased their alcohol consumption cite stress or anxiety as the primary reason, followed closely by discovering new beverages they enjoy. Socializing more often and having greater disposable income also contributes to a lesser extent.

This contrast, health-driven reduction versus stress-driven increases, underscores the polarized role alcohol continues to play: both a potentially unhealthy choice and a coping mechanism.

Preferences Are Changing, Especially Among Younger Drinkers

About half of alcohol consumers say their preferences have changed in the past year, whether in brands, flavors, or beverage types. These shifts are most pronounced among younger consumers, particularly Gen Z and Millennials, who are far more likely than older adults to experiment.

Two-thirds of drinkers overall say they are open to trying new brands or flavors, but openness declines sharply with age. Boomers overwhelmingly prefer familiar options, while Millennials and Gen X occupy a middle ground between exploration and brand loyalty.

What Drives Purchase Decisions

When buying alcohol, trusted brands and social enjoyment matter most across the board. Affordability, alcohol content, and perceived quality also rank highly. However, Millennials consistently evaluate more factors than any other generation, placing greater emphasis on brand prestige, recommendations, packaging, and trend relevance.

This suggests a more complex decision-making process, where functional attributes and social signaling intersect, especially for younger and mid-aged consumers.

Global Events Matter More Than Expected

Just over one-third of alcohol consumers say global events, including economic shifts or trade changes, have a moderate or significant impact on their access to or preference for imported alcohol. Sensitivity to global influence is highest among Asians, Gen Z, and Millennials, indicating that international supply chains and pricing dynamics increasingly shape consumer choice.

The Bottom Line

Alcohol consumption in 2025 is defined by moderation, experimentation, and context. Consumers are not abandoning alcohol, but they are thinking more carefully about when, why, and what they drink. Health concerns are pushing behavior in one direction, while stress and discovery pull in another. For brands and retailers, understanding generational and cultural nuance is central to staying relevant in a market that is becoming more selective, more intentional, and more fragmented.

Download the full report here.