Is Inflation Pushing Us to Drink Less Alcohol?

Is Inflation Pushing Us to Drink Less Alcohol? ...

Although high inflation may be expected on weed and theoverseas vacations, there are times when things get difficult to change. Those Friday night drinks with friends are often the most difficult to break.

The average American adult over the age of 21 spent $34 on alcohol in June, but only $1 more than in 2021.

In August 2021, the number rose to $26 and $38 in May 2022.

Is It Better To Drink Less (Or Just Spending More)?

For anyone who has ever gone out for drinks in a big city, either number might seem unbelievable low, but they represent an average between heavy drinkers and those who refrain from alcohol altogether.

Only 58% of the 368 adults interviewed for the study said they consume alcohol at all, compared to 63% in October 2021.

A further 29% said they started drinking less in July than the month before. The reasons, including health and social habits, have all had to do with how we acted during the summer. One third of those who drank less said they did this to save money.

Breeze, an insurance company, reported that 73 percent of households in the United States have cut back on dining and takeout, while 62 percent have decreased their social expenditure. Another 57% have reduced their groceries expenditure.

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In the report, Emily Moquin, a food and beverage analyst for Morning Consult, cited "save money," "fewer social plans, and managing weight as reasons for this shift in behavior." "Cost pressures in other categories, from gas to groceries, are influencing consumers' buying behaviors in alcohol, despite the fact that price growth has not been as widespread in this category."

Inflation is affecting most people, although, as in the usual case of two Americas, some are navigating the rising cost of alcohol, while others are using nights out to compensate for not being able to vacation or do other activities they could previously afford.

Aperol, a popular Italian aperitif, saw a 72 percent increase in sales in the first three months of 2022, as some bar and restaurant owners purchased entire crates to avoid inflation.

Is Alcohol Consumption the Next Class Divide?

"You cannot treat yourself in difficult situations, maybe you skipped the vacation, but you can always find a nice bottle of Scotch, cognac, or bourbon," Campari's CEO Bob Kunze-Concewitz said back in May.

While 20% of those earning more than $100,000 a year said they drank more in the previous month, only 12% of those earning less than $50,000 said the same. By contrast, 37% of those in the latter earning category drank less.

"Changes in alcohol consumption and drinking behaviors are most noticeable among lower-income consumers, but general stock market volatility and prolonged inflation have the potential to impact consumers across the income spectrum," Moquin wrote.

Relatively even expenditure across the months indicates a range in which some individuals are spending a lot more on alcohol while others are reducing their consumption.

"Even higher-income consumers have experienced decline in financial well-being, so while premium product purchases may not have slipped yet, prolonged pressure might cause this group to make adjustments," Moquin wrote.

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