Low-Cost Alcohol Products Account for a Disproportionate Share of Privatized Off-Premises Alcohol Sales Across 42 U.S. States

  • 0RTI International, Durham, North Carolina, USA.

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Summary

This summary is machine-generated.

A significant portion of alcohol sales in 42 US states involve lower-priced products, with ready-to-drink beverages seeing substantial growth in availability and sales. Prices remained under $2.00 per standard drink.

Area Of Science

  • Public Health
  • Alcohol Policy
  • Consumer Behavior

Background

  • Privatized off-premises alcohol sales are prevalent across 42 US states.
  • Understanding alcohol product availability, pricing, and sales is crucial for public health initiatives.
  • Lower-priced alcohol products may disproportionately affect consumption patterns and related harms.

Purpose Of The Study

  • To assess alcohol product availability, sales, and prices in privatized off-premises alcohol markets.
  • To quantify the sales market share of lower-priced alcohol products (≤$1.00 per standard drink).

Main Methods

  • Utilized NielsenIQ retail scanner data from 28 license and 14 control states (Nov 2018-Nov 2023).
  • Analyzed product availability, standard drink price, and sales for the latest year (2022-2023) and compared to the earliest year (2018-2019).
  • Quantified sales market share for products priced at or below $0.50, $0.75, and $1.00 per standard drink.

Main Results

  • Product availability increased across all alcohol types (+7.4% to +67.0%) from 2018-2019 to 2022-2023.
  • Sales decreased for beer (-8.0%) and wine (-10.7%) but increased for spirits (+7.4%) and ready-to-drink beverages (RTDs) (+68.6%).
  • In 2022-2023, 57.4% of sales in license states were ≤$1.00 per standard drink; significant portions of beer, wine, and RTD sales also fell into this price category.

Conclusions

  • A substantial proportion of alcohol sales in 42 US states are concentrated among lower-priced products.
  • The market for ready-to-drink beverages has expanded significantly in both availability and sales.
  • Continued monitoring of alcohol pricing and sales is essential for informing public health strategies.

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