Where Have All the Beer Consumers Gone?
Where Have All the Beer Consumers Gone?
Where Have All the Beer Consumers Gone?
Significant shifts in consumer behavior and lifestyle choices are contributing factors behind the drop in beer sales.
March 16, 2026
By Chrissy Blasinsky
The convenience industry’s right to sell beer was under threat in the 1980s. Forty jurisdictions in California had imposed beer-gas bans that prohibited the sale of alcoholic beverages and gas from the same location. These bans stemmed from a nationwide concern about drunk driving and were spreading to other state capitals.
Something had to be done, and NACS responded. The association brought on Teri Richman as its first in-house lobbyist, and she led the successful fight to stop the spread of beer-gas bans and protect the industry’s ability to compete with other retail channels. Defeating beer-gas bans is one of the biggest achievements in the convenience industry’s history.
Today, beer has solidified its position as an important customer traffic and sales driver for convenience stores—the channel of choice for nearly 43% of beer sales, according to NIQ.
In recent years, however, a new threat has emerged that’s impacting beer sales in convenience stores, and it’s not coming from regulations or prohibitions. It’s consumer behavior.
Beer Consumption Drops to 20-Year Low
According to NIQ data, beer consumption within the c-store channel declined in 2025, while liquor and wine posted the strongest year-over-year sales growth across all convenience store categories at 10.8% and 5.4%, respectively. That said, beer is still the dominant segment, generating nearly three times the unit sales of wine and liquor combined.
NIQ noted that wine and spirits growth within the c-store space largely came from younger Gen Z shoppers—the eldest within this generation will turn 30 this year—while the decline in beer was most significant among Gen X and millennials.
Generations aside, beer consumption overall in 2023 fell to its lowest level in over 20 years, according to Beer Marketer’s Insights (BMI). This trend continued in 2025, with beer shipments dropping to 139 million barrels from 147.7 million in 2024, according to the Brewers Association and Beer Institute. The groups attributed the falling demand to “younger generations drinking less, increased health concerns and inflation.”
NIQ data supports this change in behavior, noting in its 2025 Year in Review report that shifts in consumer preferences are reshaping the entire alcohol beverage landscape: “Winning strategies hinge on aligning with moderation occasions, premium value perception, format flexibility and RTD innovation while navigating ongoing volume pressure and cautious consumer spend. Brands and retailers that balance accessibility with elevated experiences will be best position for recovery as this category recalibrates.”
Convenience isn’t alone in this trend: NIQ notes that all brick-and-mortar channels—grocery (-3.6%), convenience (-1.4%), liquor (-4.3%), mass merch, dollar and club (-4.8%)— faced dollar declines across beer, wine and spirits in 2025.
Where Do We Go From Here With Beer?
Well, that sure sounded like doom and gloom. And, unfortunately, the 2025 recap may not be super rosy when the latest industry data is revealed at the upcoming NACS State of the Industry Summit in April.
Yes, both sales and units are down for the beer category, but some bright spots remain.
Craft brews have expanded a bit, a subcategory that does really well with a thoughtfully curated local product assortment.
Beer is occasion-based and does well around holidays, and on a Friday around 4:00 p.m. and 5:00 pm when consumers get off work. This is a great opportunity to reinforce habitual shopping (the core brands) and impulse purchasing (what’s new) with singles.
Economy/budget beers are also showing growth, particularly as economic factors continue to influence consumer spending.
If there’s one thing I’ve learned in the past 21 years of working at NACS, this industry is always up for a good old-fashioned challenge. Convenience stores have a nearly 100-year history of competing for market share and customer counts.
Beer might be down, but it’s far from out. I call dibs on 2026-2027 being the comeback years.
The convenience industry’s right to sell beer was under threat in the 1980s. Forty jurisdictions in California had imposed beer-gas bans that prohibited the sale of alcoholic beverages and gas from the same location. These bans stemmed from a nationwide concern about drunk driving and were spreading to other state capitals.
Something had to be done, and NACS responded. The association brought on Teri Richman as its first in-house lobbyist, and she led the successful fight to stop the spread of beer-gas bans and protect the industry’s ability to compete with other retail channels. Defeating beer-gas bans is one of the biggest achievements in the convenience industry’s history.
Today, beer has solidified its position as an important customer traffic and sales driver for convenience stores—the channel of choice for nearly 43% of beer sales, according to NIQ.
In recent years, however, a new threat has emerged that’s impacting beer sales in convenience stores, and it’s not coming from regulations or prohibitions. It’s consumer behavior.
Beer Consumption Drops to 20-Year Low
According to NIQ data, beer consumption within the c-store channel declined in 2025, while liquor and wine posted the strongest year-over-year sales growth across all convenience store categories at 10.8% and 5.4%, respectively. That said, beer is still the dominant segment, generating nearly three times the unit sales of wine and liquor combined.
NIQ noted that wine and spirits growth within the c-store space largely came from younger Gen Z shoppers—the eldest within this generation will turn 30 this year—while the decline in beer was most significant among Gen X and millennials.
Generations aside, beer consumption overall in 2023 fell to its lowest level in over 20 years, according to Beer Marketer’s Insights (BMI). This trend continued in 2025, with beer shipments dropping to 139 million barrels from 147.7 million in 2024, according to the Brewers Association and Beer Institute. The groups attributed the falling demand to “younger generations drinking less, increased health concerns and inflation.”
NIQ data supports this change in behavior, noting in its 2025 Year in Review report that shifts in consumer preferences are reshaping the entire alcohol beverage landscape: “Winning strategies hinge on aligning with moderation occasions, premium value perception, format flexibility and RTD innovation while navigating ongoing volume pressure and cautious consumer spend. Brands and retailers that balance accessibility with elevated experiences will be best position for recovery as this category recalibrates.”
Convenience isn’t alone in this trend: NIQ notes that all brick-and-mortar channels—grocery (-3.6%), convenience (-1.4%), liquor (-4.3%), mass merch, dollar and club (-4.8%)— faced dollar declines across beer, wine and spirits in 2025.
Where Do We Go From Here With Beer?
Well, that sure sounded like doom and gloom. And, unfortunately, the 2025 recap may not be super rosy when the latest industry data is revealed at the upcoming NACS State of the Industry Summit in April.
Yes, both sales and units are down for the beer category, but some bright spots remain.
Craft brews have expanded a bit, a subcategory that does really well with a thoughtfully curated local product assortment.
Beer is occasion-based and does well around holidays, and on a Friday around 4:00 p.m. and 5:00 pm when consumers get off work. This is a great opportunity to reinforce habitual shopping (the core brands) and impulse purchasing (what’s new) with singles.
Economy/budget beers are also showing growth, particularly as economic factors continue to influence consumer spending.
If there’s one thing I’ve learned in the past 21 years of working at NACS, this industry is always up for a good old-fashioned challenge. Convenience stores have a nearly 100-year history of competing for market share and customer counts.
Beer might be down, but it’s far from out. I call dibs on 2026-2027 being the comeback years.
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