This December, while holiday crowds continue to pack bars and restaurants across the U.S., a shift in consumer behavior is becoming increasingly apparent—fewer drinks and desserts are being ordered, signaling a change in how Americans are spending their money during the festive season. Business owners are beginning to feel the effects of these altered indulgence habits, particularly in the wake of inflation’s ongoing impact.
Dessert Spending Moves to Home
A recent report by Technomic highlights that dessert prices on U.S. restaurant menus rose by 3.2% from 2023 to 2024. Despite this, Americans’ desire for sweets remains strong, though their purchasing habits have adapted. The data reveals that sales across various dining segments have been affected differently. Fast-casual restaurants have experienced the steepest decline, with a 6% drop in dessert sales, compared to a 3% decrease at fast-food chains and a mere 1% reduction at casual-dining establishments.
This shift suggests that while demand for dessert is still present, many consumers are opting to indulge at home rather than at restaurants, potentially due to higher menu prices or a preference for cost-saving strategies.
Less Alcohol, More Socializing
When it comes to alcohol, the story is similar. While bar and restaurant traffic remains strong in December, industry professionals are noticing a shift toward more budget-conscious choices. Meaghan Dorman, a director and partner of several New York City bars, explained to Reuters that her venues are busy as usual but that customers are increasingly opting for less expensive drinks over craft cocktails, which typically come with higher price tags.
“We are still packed all night, but revenues are down compared to previous years,” Dorman said, noting that many customers are choosing lower-cost liquor brands or cutting back on alcohol altogether to save money and improve their health.
As consumers seek alternatives, non-alcoholic (NA) beverages are becoming more popular. Today, a wide range of non-alcoholic options are available, from alcohol-free bitters to ready-to-drink cocktails and zero-proof spirits like rum and whiskey. The surge in innovative non-alcoholic offerings has captured the attention of those looking to moderate their drinking or quit altogether.
The Rise of Non-Alcoholic Beverages
In 2023, U.S. sales of non-alcoholic beer, wine, and spirits surpassed $565 million, marking a 35% increase from the previous year, according to data from NielsenIQ. This growth is expected to continue, with Grand View Research projecting a compound annual growth rate (CAGR) of 7.4% through 2030.
Among the various non-alcoholic categories, NA beer maintained the largest market share, representing 86.1% of total sales in 2023. However, NA spirits emerged as the fastest-growing segment, with sales increasing by 94% year-over-year.
The trend toward moderation is not limited to younger generations. While Generation Z, which comprises just 6% of alcohol buyers, is driving much of the shift toward reduced alcohol consumption, other demographics are also embracing non-alcoholic beverages. According to NielsenIQ, individuals aged 45-54 and those earning over $100,000 annually are among the most significant consumers of NA drinks.
As inflation continues to impact spending, more Americans are making adjustments in their holiday indulgences—opting for more affordable and health-conscious choices both at home and in social settings.
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