Read our full analysis for a more in-depth look at these trends.
Raising the bar or last call?
Inspired by social media trends or pressured by rising prices elsewhere consumers, especially Gen Z, cut back on alcohol.
February 2025
Key takeaways
- Consumers are heading to the bars rather than imbibing at home, according to Bank of America aggregated card data. Spending at bars was up 1% year-over-year (YoY) in January 2025, an improvement since last fall, but significantly slower than the 26% YoY growth rate two years ago. Meanwhile, spending at alcohol stores decreased 5% YoY in January.
- The drop in at-home drinking could be due to more consumers abstaining, inspired by social media trends like 'Dry January.' Gen Zers are leading the charge, spending 15% less on alcohol this January than two years ago.
- Another reason could be that people are still destocking their liquor cabinets after over-purchasing during the pandemic when many bars were closed. Spending at alcohol stores made up 4.8% of total food and beverage spending in January 2025, down a full percentage point from three years ago.
- Perhaps surprisingly, Baby Boomers are behind the increase in bar spending, up 4% YoY and higher than any other generation, according to Bank of America internal data. And some appear to be more readily choosing the bar instead of traditional restaurants.
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