American drinking habits are changing significantly, Datassential reported, with many people starting to drink less—or not at all.

The market research company reported that one in five drinkers said they skip alcohol more often when out, with a similar share intentionally limiting how much they drink per outing. Additionally, the share of drinkers who enjoy alcohol at least a few times per year has declined by 6%, with many reporting drinking less often both at home and away from home.

“Despite two-thirds of legal-age Americans still drinking alcohol at least occasionally in 2025, the trend is clearly downward, with incidence highest among men, Gen Z, millennials, and higher-income consumers,” Datassential wrote.

There are several factors influencing the shift away from drinking, the company said. Health and wellness are a greater priority for consumers, with nearly a third of drinkers believing there’s room for more mindfulness and moderation in their alcohol consumption, while 6% are actively cutting back or quitting.

Cost is also a reason consumers are cutting back. Datassential reported that more than two-thirds of drinkers agree that alcoholic beverages have gotten noticeably more expensive. Additionally, over a third of those drinking less in 2026 point specifically to higher alcohol prices as a key reason for reducing consumption.

Nearly half of drinkers, especially Gen Z and millennials, say alcohol feels less appealing than in the past. Two in five perceive drinking as less common nowadays, and more than 40% don’t view alcohol as an important part of their lives.

Gen Z is at the forefront of the “sober-curious” movement—nearly half reported planning to reduce alcohol consumption and the cohort is the most likely to question alcohol’s role in enhancing experiences. Meanwhile, millennials are motivated by stress management and wellness, seeking beverages that support mental health without alcohol’s downsides.

There are also more options and alcohol alternatives for consumers coming to the market. Nearly 40% of drinkers also consume cannabis, CBD or THC, and over 60% of them say their cannabis usage directly impacts how often they drink alcohol. Datassential also highlighted low-alcohol cocktails, non-alcoholic mood-boosting beverages, CBD-infused beverages, better-for-you options like functional beverages and tea as alternatives consumers are choosing.

Tea is emerging as the beverage of choice for mindful drinking occasions. Approximately 58% of consumers believe tea is healthy, making it an attractive base for both alcoholic and non-alcoholic beverages. Tea consumption during happy hour is notably higher among Gen Z (23%) compared to older generations, reflecting younger demographics’ preference for non-alcoholic social beverages.

“The question is no longer whether non-alcoholic options exist, but which of the many innovative, flavorful choices will gain market share,” Datassential wrote.

Women are leading the next round of adult beverage sales, with females representing 40% of beer drinkers. Read more about the evolving beverage drinker in the August 2024 feature “The Drink-Driving Demographic.”