Under the Hood: As America Drinks Less, Napa Feels the Squeeze
By Tim Carl
In today’s Under the Hood we examine Gallup’s July 2025 Consumption Habits Survey, which documents the steepest decline in American alcohol consumption in modern history. The share of U.S. adults who drink has fallen from 62% in 2023 to 54% in 2025. At the same time, Gallup’s July 2025 Alcohol Drinking Survey shows that the percentage of drinkers who most often choose wine has slipped to 29%, down from 33% just a year ago and from mid-2010s highs of 34–35%.
These dual declines mean fewer Americans are drinking, and among those who do, fewer identify as core wine consumers. The result is accelerating pressure on wine demand — shrinking the very consumer groups that fueled Napa Valley’s rise over the past three decades.
The Spotlight
Welcome to Under the Hood, our exclusive Saturday series for Napa Valley Features paid subscribers.
Beyond today’s discussion, we’re also diving into the latest data from our readers’ polls and providing insights from our economic dashboard, covering local Napa Valley, U.S. and global markets.
“What We’re Reading” features excerpts from recent articles offering a range of perspectives on topics shaping our community and the wider world. A new section at the end, “Visuals That Caught Our Eye,” spotlights compelling charts and graphs that stood out this week.
“What We’re Reading”: Excerpts of the Day
"Sometimes, a scrappy, MacGyver-style operation can stand toe-to-toe with well-financed brands because of one thing: heart." – from Michael Honig, in "Napa Valley's Thriving Family Affairs," Wine-Searcher.
"To Kalon is a place. It has been for 139 years." – from Andy Beckstoffer, in "Robert Mondavi Winery Owner Prevails in To Kalon Name Battle," Wine Spectator.