Beer, Wine, and Liquor Stores NAICS 445320

Dec 8, 2025 - Beer’s Affordability Crisis

• An affordability crisis is taking the fizz out of the craft beer market, according to Andrew Heritage, chief economist at the Beer Institute. Heritage says that as Americans struggle financially, they tend to trade down on non-essentials like beer, with more drinkers opting for brands in the economy segment (e.g. Miller High Life or Busch Light), found at discounters like Costco or Sam's Club, over craft brews that can only be found at high-priced breweries. He says that’s proof that consumers are looking for a lower price point. The economy isn't the only thing driving changes in beer consumption. Over the last 20 years, craft beers have been trending, bringing a dizzying array of flavors, options, and alcohol content levels to the tap room. Experts say this explosion of choices may have overwhelmed consumers and left them craving the simplicity of classics like Budweiser.
• New data from drinks data provider IWSR shows that while Americans say they are drinking less, actual consumption has only slightly declined, with weekly averages hovering around 10 to 12 drinks per adult since the 1970s. Still, broader trends, such as fewer adults identifying as drinkers (down to 54% to the lowest in decades) and growing health concerns, signal a slow but steady cultural shift. For liquor stores, this means flat or slightly declining alcohol demand, particularly among younger consumers who are increasingly turning to non-alcoholic alternatives. Wholesalers and retailers may see reduced foot traffic and smaller basket sizes, especially in beer and spirits categories. At the same time, the rise of alcohol-free products presents an opportunity for stores that diversify into non-alcoholic beverages to offset losses. Overall, retailers face a gradual erosion of traditional sales, requiring adaptation to evolving consumer preferences.

• Michelob Ultra is now the top-selling beer in the US, overtaking Modelo Especial, CNBC reports. The light lager claimed the title of the best-selling beer in retail channels in the 52 weeks ended Sept. 14, parent company Anheuser-Busch announced citing data from consumer research firm Circana. The beer was also the top seller in bars and restaurants, according to Nielsen IQ data for the 52 weeks ended July 12. Michelob Ultra’s ascent returns an Anheuser-Busch beer to the top spot. In 2023, the company’s Bud Light brand lost the title to Modelo amid a consumer backlash against the brand and growing cultural cachet for Modelo. Previously, Bud Light had held the title as the US’s top-selling beer for more than two decades. Modelo brewer Constellation Brands recently reported weaker demand from Hispanic consumers, a key segment of its customer base, per CNBC.
• According to PwC’s 2025 Holiday Outlook survey, consumers expect their seasonal spending to decline on average by 5% this year compared to 2024, the first notable drop since 2020. More broadly, 84% of consumers expect to cut back over the next six months, citing rising prices, new tariffs, and the high cost of living, according to PwC. That’s unwelcome news for beer, wine and liquor stores, whose sales peak during the winter holidays. While overall average consumer spending is expected to drop 5%, Gen Z respondents (ages 17 to 28) said they plan to cut their holiday budgets by 23%, much more than their elders. Gen Z is also drinking less alcohol than previous generations, a longer-term concern for liquor retailers. However, AlixPartners 2025 US Retail Holiday Outlook forecasts an increase in spending on at-home holiday food and beverage spending, primarily driven by high-income households.