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: 82.460
Low
75.00
Averages
80.00
High
85.00
Current: 82.460
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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See More
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- Impact of Young Consumers: Generation Z's preference for non-carbonated beverages is significant, with many believing carbonation leads to bloating, prompting beverage companies to innovate more in fizz-free products to meet this generation's health and functionality demands.
- Intensifying Brand Competition: Brands like Surfside have rapidly emerged as key players, with Surfside becoming the fastest-growing alcohol brand in the U.S. in 2024, showcasing strong demand for non-carbonated options in the alcoholic beverage market.
- Packaging and Marketing Innovation: As non-carbonated drinks gain popularity, aluminum cans have become a new trend, with brands like Liquid Death and Celsius successfully attracting young consumers by emphasizing fizz-free attributes and health-conscious branding, driving sales growth.
See More
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- Historic Brand: With a brewing history of 177 years, Schlitz was the largest brewer in the world during the 1950s; however, cost-cutting measures that altered its recipe led to a decline in brand loyalty and sales.
- Market Impact: The cessation of Schlitz production marks the end of an era and reflects broader changes in the U.S. beer market, where many century-old brands face similar challenges, potentially affecting consumer perceptions of traditional brands.
- Cultural Legacy: Schlitz has a rich history in Chicago, having provided drinking water to residents after the Great Chicago Fire of 1871, and its disappearance signifies a significant loss to local culture and history.
See More
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- Technical Training Center: The investment will also fund a new technical skills training center aimed at upskilling employees, with plans to enhance the skills of over 90% of the manufacturing workforce over the next five years, thereby boosting the company's overall competitiveness.
- Veteran Employment Support: Anheuser-Busch continues its collaboration with the Manufacturing Institute to provide career resources for veterans, with nearly 20% of the Williamsburg workforce being veterans or active service members, reflecting the company's commitment to veteran career development.
- Long-term Economic Impact: Over the past five years, Anheuser-Busch has invested nearly $50 million in Williamsburg, demonstrating its role as an economic driver in Virginia and its commitment to the sustainable development of American manufacturing in the future.
See More
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- Capacity Enhancement Investment: Anheuser-Busch's $5.8 million investment in the Williamsburg brewery aims to boost production capacity for Michelob ULTRA, the nation's top-selling beer, thereby reinforcing its leadership in the rapidly growing beer market.
- Technical Training Center Development: This investment will also fund a new technical skills training center, with plans to upskill over 90% of the manufacturing workforce over the next five years, ensuring the company's competitiveness in technical and management systems.
- Veteran Employment Support: Anheuser-Busch collaborates with the Manufacturing Institute to facilitate veteran entry into manufacturing, with nearly 20% of the Williamsburg brewery's workforce being veterans or active service members, highlighting the company's commitment to veteran career development.
- Long-term Economic Impact: Over the past five years, Anheuser-Busch has invested nearly $50 million in Williamsburg, demonstrating its role as an economic driver in Virginia and laying the groundwork for the future of American manufacturing.
See More
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- Strong Market Performance: In Q1 2026, AB InBev achieved all-time high revenues and volume growth, with Corona's sales outside its home market growing by 16%, indicating its increasing influence in global markets, particularly due to its role as the first global beer sponsor of the Winter Olympics.
- Portfolio Advantage: According to Kantar BrandZ 2026 rankings, AB InBev holds 8 of the top 10 beer brands globally, including Budweiser and Modelo, which not only solidifies its market leadership but also demonstrates the diversity and competitiveness of its brand portfolio.
- Long-term Growth Strategy: AB InBev's Global Chief Marketing Officer, Marcel Marcondes, stated that the brand's ongoing success stems from long-term brand building and market strategies, which not only enhance brand recognition but also lay a foundation for the company's future sustainable growth.
See More
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- Convenience Store Struggles: Sales in convenience stores like 7-Eleven and Wawa dropped approximately 9% year-over-year in the two weeks since April 26, highlighting the adverse effects of high gas prices on impulse purchases, particularly as average gas prices reached $4.51 per gallon.
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See More
