Alcohol Trends: Decreasing Consumption Rates with Potential Growth in Innovation and M&A
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 13 2025
0mins
Source: SeekingAlpha
Decline in Alcohol Consumption: The percentage of U.S. adults consuming alcohol has dropped to a multi-decade low of about 54%, with significant declines among younger adults under 35, influenced by changing health perceptions and the rise of no- and low-alcohol alternatives.
Spending Trends: Bank of America reported an 8.6% year-over-year decline in spending at U.S. alcohol stores, with younger generations like Gen-Z and Millennials showing the largest decreases in alcohol-related purchases.
Health Consciousness and Social Changes: Increased awareness of health risks associated with alcohol, along with economic pressures and shifts in social behaviors, such as earlier socializing and online engagement, are contributing to reduced alcohol consumption.
Market Implications and Industry Shifts: The decline in alcohol consumption is affecting major beverage companies, prompting non-alcoholic brands to enter the alcohol market, while traditional alcohol companies explore new product lines, indicating potential for future mergers and acquisitions in the sector.
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Analyst Views on BUD
Wall Street analysts forecast BUD stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 82.090
Low
75.00
Averages
80.00
High
85.00
Current: 82.090
Low
75.00
Averages
80.00
High
85.00
About BUD
Anheuser-Busch Inbev SA is a Belgium-based company. The Company is primarily engaged in the manufacturing of beer. The Company operates through six segments: North America, Middle Americas, South America, EMEA, Asia Pacific, Global Export and Holding companies. The Company's brand portfolio includes global brands, such as Budweiser, Corona and Stella Artois; international brands, including Beck's, Leffe and Hoegaarden, and local champions, such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Cass and Jupiler. The Company's soft drinks business consists of both own production and agreements with PepsiCo related to bottling and distribution arrangements between its various subsidiaries and PepsiCo. Ambev, which is a subsidiary of the Company, is a PepsiCo bottler. Brands that are distributed under these agreements are Pepsi, 7UP and Gatorade.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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