Key Takeaways
- U.S. alcohol consumption has plummeted to a record 90-year low, with only 54% of adults reporting they drink, a significant drop from 62% in 2023.
- This decline is largely attributed to a growing public perception that even moderate alcohol consumption is harmful, now believed by 53% of Americans.
- Goldman Sachs (GS) strategists are reportedly advising investors to "buy the dips" in equities, viewing market pullbacks as opportunities despite an increasingly fragile macroeconomic backdrop.
U.S. Alcohol Consumption Reaches Historic Low
New data from Gallup's annual Consumption Habits survey reveals a significant shift in American drinking habits, with U.S. alcohol consumption falling to its lowest level in nearly 90 years. Only 54% of U.S. adults reported consuming alcohol in 2025, a notable decrease from 58% in 2024 and 62% in 2023. This figure marks the lowest point since Gallup began tracking in 1939, surpassing the previous record low of 55% set in 1958.
The primary driver behind this decline appears to be a growing awareness and concern regarding the health implications of alcohol. For the first time, a majority of Americans—53%—now believe that even moderate drinking is detrimental to health, a substantial increase from 45% last year and just 28% in 2015. Public health authorities have increasingly issued warnings, linking even small amounts of alcohol to at least seven types of cancer.
Beyond health concerns, economic pressures such as inflation and rising interest rates are also contributing factors, stretching consumer wallets and potentially impacting discretionary spending on alcohol. The survey also indicates a shift in consumption patterns among those who still drink, with a record-low 24% reporting a drink in the previous day and 40% reporting more than a week since their last, the highest share since 2000. The average weekly intake has fallen to 2.8 drinks, the lowest since 1996, down from 3.8 a year ago and a peak of 5.1 drinks per week in 2003. Interestingly, this trend does not appear to be driven by a shift towards recreational cannabis.
Goldman Sachs Recommends Buying the Dip Amid Market Fragility
Meanwhile, Goldman Sachs (GS) strategists are reportedly advising investors to capitalize on market pullbacks, recommending a strategy of "buying the dips" in equities. This comes as the macroeconomic environment shows signs of increased fragility, with concerns about growth potentially leading to larger equity drawdowns.
According to Goldman Sachs Research, recent market volatility, such as the 8% drop in U.S. equities from their highs in August, serves as a "warning shot," signaling a higher risk of further setbacks. Factors contributing to this fragile backdrop include a softening U.S. labor market, weakening global manufacturing data, a sputtering Chinese economy, and lower-than-expected consumer spending in Europe.
Despite these headwinds, Goldman Sachs maintains that the risk of a major bear market—defined as a drop of more than 20% over 12 months—remains relatively low. However, the likelihood of shorter-term corrections of approximately 10% has increased. Strategists suggest that these declines should be viewed as opportunities for investors to acquire quality companies at more reasonable prices, reinforcing the "buy the dip" approach.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.